We will be happy to assist you in choosing the best tax strategy and implementing it!
In most cases, to be recognised as a tax resident of the host country, you must spend 183 days on the territory of a European country. After this period, the country is entitled to tax your worldwide income. Therefore, till the end of the year, the majority of Ukrainians relocating to Europe since the beginning of the war may be subject to double taxation, when Ukraine treats them as Ukrainian tax residents, and the host country treats them as tax residents too. In addition, in some cases, not only personal income is subject to the risk of double taxation, but also business income. One of the most common examples is the case when a top manager continues to work in a Ukrainian company while abroad.
To solve such situations, many European countries joined conventions on avoidance of double taxation, but do they always work? As a starting point, which can set a direction for further analysis, we, together with our foreign colleagues from the Andersen network, have prepared a comprehensive overview of approaches to taxation in the most relevant countries that currently host a significant number of Ukrainians. This review will be interesting to both employees and managers or company owners.
Based on the experience of foreign colleagues, our review will help you find the answer to the following questions:
• How can you find your way in the host country quickly? (which documents are needed to obtain, which protection status can be claimed)
• When should you think about taxation in the host country? (how and when tax residency is acquired, whether a business activity should be taxed)
• How much taxes do you have to pay? (tax rates, special or preferential tax regimes)
