Lviv's economy relies heavily on the industrial sector, which accounts for much of its economic output. The main industries in Lviv are heavy machinery production and electronics manufacturing, particularly the assembly of trams, buses, and personal electronic equipment. The major companies in this sector of the economy include: Elektron, a national personal electronics corporation; LAZ, a bus manufacturing company; and Elektrotrans JV.
In recent years the service sector has become more important to the economy, and Lviv is now one the leading areas in Eastern Europe for software production, computing, and information technology. Expatriates working Lviv tend to be employed in technical positions in the industrial or service sectors, in diplomatic or governmental roles, or as English teachers.
Expatriates wanting to work in Lviv will need a work permit to do so. As your prospective employer will sponsor your work permit application, it is advised that you first secure work in Lviv before considering applying for a work permit. Your prospective employer will submit a letter of invitation and an accreditation card to the Ukrainian Ministry of Economy.
The organization may also need to provide demonstrative proof that your role cannot be filled by any Ukrainian citizens in order for the work permit to be granted, as Ukraine has recently introduced new employment laws designed to protect its economy. You must also submit a medical certificate from a certified practitioner, as well as many other legal documents including proof of address and your employment history. You are advised to seek more information on permits for working in Lviv from your prospective employer.
Expatriates living and working in Lviv will be required by law to pay income tax on their earnings. If you are considered a resident of Ukraine for tax purposes — that is, if you live and work in Lviv for more than 183 days in a year — you will be taxed at the Ukrainian rates on your worldwide income; if you live and work in Lviv for less than 183 days in a year, you will be taxed at Ukrainian rates on your Lviv income only.
Like many other European countries, Ukraine has a sliding scale tax system where your earnings for the fiscal year determine how much income tax you will pay. However, unlike most countries in Europe, there are only two brackets for income tax. The income tax rates for expatriates working in Lviv for 2015 are as follows:
However, people working in Lviv are also required to pay social security contributions on top of income tax, which amounts to 3.6% of their income.