Starting from 10 September 2019, non-residents in Ukraine no longer face special restrictions in the repatriation of investments or other income.
With the approval of Resolution No. 113, the National Bank of Ukraine cancelled all limits previously applicable to the transfer of funds, including from UAH and FX accounts of non-residents in Ukraine.
CMS believes this resolution will significantly improve and simplify how business is done in Ukraine for both non-residents and their Ukrainian counterparties and will boost international commercial cooperation.
According to the Resolution, the following limits will no longer apply for foreign fund transfers by non-residents:
- The EUR 5 million limit on repatriation of investments;
- The EUR 2 million limit on any business transactions by non-resident legal entities not specifically exempted; and
- The EUR 50,000 limit applicable to some specific transactions by non-resident individuals.
The Resolution also introduces an additional option for non-resident legal entities to use bank accounts opened in Ukraine. Specifically, the income of non-residents for property that does not qualify as a foreign investment can now be placed in their Ukrainian bank accounts, which will make it easier to receive income or make further reinvestments in Ukraine.
For more information on this Resolution and how these changes might affect your investments, contact your regular CMS source or local CMS experts: Ihor Olekhov, Kateryna Chechulina, Artem Barabash.