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Posted by 21 May 2025 in Insight
Today, despite the war, Ukraine is trying to implement reforms in the field of foreign capital, as it needs to attract large investments in order to ensure effective modernization and development of the country. Ukraine is trying to attract more and more qualified workers (especially in IT, agro-industry and agriculture) and including investments in infrastructure projects.
Ukraine provides great opportunities in many sectors of the economy, ranging from the technology sector to transport production. Recently, special programs such as Diya.City have been introduced for technology companies and state-owned industrial parks, which offer tax benefits and simplified rules for foreign investors. It is important to note that Ukraine is gradually approaching EU standards, so these advantages make it an attractive hub for foreign direct investment.
Strategic location and market access: Ukraine’s gateway position provides easy access to both EU and CIS markets. Investments here can serve as a springboard into a 40‑million+ consumer market in Europe.
Competitive costs: Lower labor and operating costs compared to Western Europe mean projects can achieve stronger returns. A highly educated workforce (especially in IT and engineering) is available at attractive rates.
Government incentives: To spur priority industries, Ukraine offers special incentives. For example, companies operating in approved industrial parks or under the Diia.City digital economy regime enjoy long-term tax holidays and simplified regulations. The government’s Investment Promotion Office also provides resources, matchmaking and guidance for foreign investors.
Robust economic reforms: Recent legislation has improved transparency and property rights (e.g. land market reforms, anti-corruption measures). Importantly, Ukraine has committed to EU-standard protections for foreign investment – including no forced nationalization and guaranteed repatriation of profits.
These factors, combined with a growing consensus that Ukraine’s economy will expand significantly post-crisis, create a compelling case for investing now.
Today, Ukraine has the most favorable immigration conditions for investors, namely, it has the lowest threshold of the required investment to obtain permanent residency in Ukraine, such a low threshold is not found in any other country in Europe. According to the Law of Ukraine "On Immigration", a foreign investor who has made an investment in the economy of Ukraine in the amount of at least 100,000 US dollars has the right to obtain permanent residency for 10 years.
For comparison with European countries that have programs such as the "Golden Visa", these amounts range from 250,000 euros to 1 million euros. In practice, a $100,000 investment (typically into a local company’s capital or new business project) grants the investor the right to reside and work in Ukraine. This investor status route is explicitly provided for in the Law on Immigration: it lists foreign citizens who invest $100,000 or more (in convertible currency) as eligible to receive an immigration permit.
Obtaining this status can unlock the full advantages of residency: visa-free travel within Ukraine, the ability to run businesses, and the groundwork for eventual citizenship if desired. The process is relatively straightforward: after forming a company or making the investment, the investor applies to the State Migration Service for an immigration permit. Our Investment Immigration to Ukraine guide explains this step-by-step. Compared to other regions, Ukraine’s accessible threshold means even small- and mid-sized investors (and their families) can qualify.
In practice, a prospective investor would typically follow steps such as: Company Formation: Establish a Ukrainian legal entity (commonly an LLC) and open a local bank account.
Capital Injection: Transfer and deposit at least $100,000 USD into the company’s authorized capital (following National Bank regulations).
Immigration Application: Prepare and submit the residency application under the Immigration Law (providing investment documents, legal clearances, etc.).
Permit Issuance: Upon approval, obtain the permanent residence card.
Each of these steps involves clear legal procedures, and our experts can guide investors through the documentation and compliance. For more detail on starting a business and the residency pathway in Ukraine, see our insight on Business Immigration in Ukraine.
Ukraine’s legal framework offers comprehensive protections to foreign investors. The key document is the Law on the Regime of Foreign Investments (Law No. 93/96-VR), which enshrines national-treatment and guarantees for investors. Notably, the law provides that foreign investors “shall receive national treatment” (meaning the same rights as domestic investors) in economic activities, except where laws explicitly restrict foreign participation.
The law also affirms that foreign investments cannot be nationalized or expropriated by the state (except in narrow emergency cases, like natural disasters).
Even in those rare cases, any seizure of property must be compensated swiftly, fairly and in the currency of the investment. In essence, Ukraine commits to the rule of law: a foreign investor’s property and assets are protected, and disputes can be resolved in Ukrainian courts or arbitral tribunals if needed.
Other guarantees include:
Stability guarantees: If Ukrainian authorities later change investment laws, foreign investors can opt to “freeze” protection terms. By law, if the government enacts a new investment-related regulation that worsens the terms of an existing investment, the original guarantees apply for up to 10 years from the change.
Repatriation rights: Investors have the right to withdraw their capital and profits at any time. If an investment is liquidated, the investor may retrieve the invested principal (in-kind or currency) within six months without duty. Profits and dividends earned in Ukraine can be transferred abroad promptly and without discrimination after taxes.
Favorable incorporation: Ukrainian law permits foreign companies to form local subsidiaries or representative offices easily. There are no nationality restrictions for company owners or directors, aside from standard corporate laws.
These legal safeguards make Ukraine’s investment climate more secure. In addition, specialized regimes (such as concession agreements for infrastructure projects) provide clear project frameworks. For example, Ukraine’s modern concession law – aligned with EU best practices – lets private firms operate public assets (like ports or utilities) under long-term contracts. Our article on Concession Agreements in Ukraine explains how foreign investors can tap into major projects under transparent, government-approved terms.
Ukraine has also codified the procedures for issuing investor permits. The Law “On Immigration” (No. 2491-III) lays out who qualifies for an immigration quota, and the cabinet has approved detailed rules on how applications are processed. For instance, a 2002 government decree formalizes the immigration quota and the step-by-step application process. In practice today, this means the State Migration Service regularly allocates slots for investor visas, and applications are handled on a predictable schedule.
The immigration process can be summarized as: apply for a long-term visa (Type D) through the Ukrainian consulate, then, once in Ukraine, submit an immigration permit application under the law. Required documents include proof of the investment, corporate registration, a clean criminal record, and basic health clearances. Spouses and minor children can be included in the family’s permit application, so entire families move together.
Processing time is typically a few months, but our legal team assists at every stage to minimize delays. Thanks to the updated rules, investors benefit from an almost automated process. The key criteria and documentation are clearly defined by law. Moreover, in October 2024 Ukraine further refined these procedures (e.g. via updated Cabinet resolutions), making the system more efficient. As a result, a well-prepared applicant with the $100k investment generally faces few surprises. (See our insight on Investment Immigration for case studies and tips.)
Entering the Ukrainian market also requires choosing the right corporate structure and complying with local regulations. Most foreign entrepreneurs opt for a limited liability company (LLC), which is quick to form and offers flexibility. Thanks to e‑government initiatives, an LLC can now be registered online via Ukraine’s Diia platform.
If the company uses the standard Model Charter, founders (with an electronic signature) can complete registration in as little as one day. This rapid procedure is a major advantage: within days a foreign investor can have a fully legal business entity. (In practice, however, company documents must disclose any foreign Ultimate Beneficial Owners, so our lawyers often assist in preparing the paperwork to meet these requirements.)
After incorporation, the next steps typically include:
Bank account setup: Foreign investors open a business bank account to transfer the required capital. Ukrainian banks now have efficient onboarding processes, especially if the investor works with experienced counsel.
Licenses and permits: Depending on the industry (for example, real estate, telecom, or certain services), specific licenses may be needed. Our firm helps identify and apply for any permits under Ukrainian law.
Tax and labor compliance: Ukraine has modernized its tax code and labor regulations. Companies must register for VAT and social taxes; however, in many cases investors can benefit from special regimes (e.g. reduced taxes for IT companies or R&D centers). Foreign founders can also obtain work permits and visas linked to their company, which we coordinate with immigration steps.
Throughout these steps, having local legal advice is invaluable. Our attorneys can handle due diligence on any acquisition or project, negotiate contracts, and ensure full compliance with Ukraine’s Commercial, Corporate and Labor Codes. This legal support speeds market entry and prevents pitfalls, allowing investors to focus on growing the business. (For a practical overview, see our Business Immigration to Ukraine article, which covers company types, tax issues and residency options.)
In summary, Ukraine presents foreign investors with high growth potential and a low barrier to entry. Laws and recent reforms safeguard investments and even grant residency rights, while government programs reward capital commitments in key sectors. The minimum $100k threshold opens doors that, in other countries, might require 4× or 8× larger outlays.
Our law firm specializes in guiding international clients through every stage: from forming a corporation and obtaining investment permits, to structuring joint ventures and securing intellectual property rights. We also assist with negotiating with public authorities (for example on concessions or PPP projects) and represent investors’ interests in Ukraine’s courts or mediations if needed.
Investors can rely on Ukraine’s solid legal framework as they pursue opportunities here. Whether you plan to rebuild infrastructure, expand an IT startup, or enter emerging consumer markets, professional legal support will make your journey smoother. We encourage every interested company to review our insights on business immigration and investment immigration for detailed guidance.
Most importantly, when you’re ready to take the next step, reach out to our team – we stand ready to provide personalized assistance, answer your questions, and help structure your investment to maximize its chances of success. Contact us today to start leveraging Ukraine’s favorable investment climate with confidence.
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