Kiev at a Glance
Working in Kiev
As the capital and largest city in the Ukraine, Kiev is the major administrative and economic center of the country. This means that as well as accounting for a large number of high value jobs in finance and other professional services in Ukraine, Kiev also has a higher labor productivity than the rest of the country. Kiev's total GDP is about 13,000 USD per capita.
The city relies heavily on industry, a large amount of which is devoted to the production of utilities, including gas, electricity, and water. Food production is also a major industry, as are chemical production, mechanical engineering, and paper production. The service sector is also important to the economy, and Kiev is a growing business city. There are a lot of successful businesses in Kiev, including some of the Ukraine's largest companies, such as Naftohas Ukrajiny, Energorynok and Kyivstar. Typical jobs for expatriates working in Kiev include language teaching, working in finance or business, and jobs in technical industrial positions.
Work Permits for Kiev
Expatriates who want to work in Kiev will require a work permit in order to do so. As the Ukraine is not a member of the European Union (but hopes to apply by 2020), this is also true for EU citizens. A permit allowing you to work in Kiev must be secured before traveling to the city. Under rules set by the Ukrainian government, the Ministry of Employment of the Ukraine must consider your application within 30 days.
Work permits are valid for up to a year and will need to be renewed should you wish to extend your stay. There are a number of different types of work permits, each allocated to a different type of job, so you should check with your prospective employer or your local embassy or consulate before applying.
Income Taxation in Kiev
Expatriates working in Kiev will be required to pay income tax on their earnings. The Ukraine has a unique income tax system, ranging somewhere between a flat tax rate and a progressive sliding scale system. For the year 2015, people working in Kiev are required to pay 15% income tax. However, if their income exceeds ten minimum monthly salaries, then it is raised to 17%. The minimum monthly salary is set at 11,470 UAH (681 EUR) for 2015.
If you are a resident of the Ukraine whilst working in Kiev, then you will pay income tax on your worldwide income at this rate. However, if you are a non-resident working in Kiev, then you will pay income tax only on your Ukrainian income. Value Added Tax (VAT) is set at 20%, the same as many other European countries, while the corporate tax rate is set at 16%.