RELOCATION: HOW TO TRANSFER MONEY FROM UKRAINE ABROAD NOWADAYS?

With the outbreak of war in Ukraine,?many business owners have been considering the option of relocating abroad. One of the main concerns in realising this?path?is the issue of transferring money abroad,?since?with the introduction of martial law in Ukraine almost all?foreign?transactions have been forbidden.?

According to financial legislation, under ordinary circumstances, a company in Ukraine or a registered individual entrepreneur may transfer an amount of up to €2 million per year abroad?in?order?to?carry out?its business activities.?However,?there is a possibility in law not to apply this limit and to transfer more than €2 million. For instance, a company from Ukraine?could?transfer to the account of its own branches?or?representative offices open abroad.?Meanwhile,??as a general rule, an individual is allowed to transfer abroad up to a limit of €200,000 per year in prescribed cases. Such cases are, inter alia, making an investment abroad, transferring funds to his or her own account outside Ukraine,?or?granting a loan to a non-resident.?The limit of €200,000 applies to one person, regardless of whether such?a?person uses the funds to grant?aloan or deposits them into?their?own accounts. The total amount must not exceed €200,000.??

It should be noted that the moratorium on cross-border payments was introduced by a resolution of the National Bank of Ukraine on 24 February 2022. This moratorium means that during martial law in Ukraine, companies and individuals are not allowed to transfer money abroad unless it is a payment for critical imports, the list of which is strictly fixed.?Consequently, all of the money transfer options described above will be available for use?once more?after the end of martial law. However, since the Ukrainian parliament?has approved?a proposal to extend martial law until 23 August 2022, it is clear that these?will not?options in the immediate future.?For this reason, business owners considering relocation are looking for other possible methods of transferring funds abroad, which are now limited.?However,?for those who?have?a??wide?knowledge of Ukrainian legislation and keep up to date with?changes in legislation, they can be found.?

Therefore, the best solution is to?consult with?qualified lawyers who can not only advise on opportunities in the financial sector, but also assist with choosing the most beneficial corporate structure,?registering a business abroad, and selecting the most favourable taxation system.?

Oksana?Skorobohach, PATH Law Hatylak Kielian i Wspólnicy

Contact:?[email protected]

www.pathlaw.pl