Which EU countries are best for Ukrainians with temporary protection to live, travel, and pay taxes in? Lawyers from Visit Ukraine explain

Temporary protection often means that you can only leave the country for a limited period of time. Find out which EU countries offer greater freedom of movement and lower taxes, based on a real request to VU lawyers

Legal assistance on migration issues for Ukrainians in Ukraine and abroad

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Many Ukrainians who have received temporary protection (TP) in EU countries face questions such as: how often can they leave the country of residence, can they work through a Ukrainian sole proprietorship, how to avoid double taxation, and in which countries it is more profitable to live.

In this article, we explain which countries have more flexible rules, what tax nuances to consider, and how to optimize your migration and financial strategy, using a real request to Visit Ukraine lawyers as an example.

Request: I need advice on countries where there is greater freedom of movement with temporary protection (without financial assistance), where there are no strict restrictions on the time I can leave the country where I obtained temporary protection. For example, in Poland, I read that you can leave for a maximum of one month per trip, which is not very convenient. I have my own business in Ukraine, so the question is, can I receive money for my business and have temporary protection, or will I have to start a business in the country where I receive protection, and then legalize it in the future? Can I remain solely on my Ukrainian sole proprietorship? I read that if I live in another country for 183+ days, I am already a tax resident. How can I optimize this? Which countries have lower living costs and lower taxes?

Features of life in EU countries with temporary protection status – consultation with a lawyer Visit Ukraine

Temporary protection in EU countries is regulated by Council Directive 2001/55/EC and EU Council Decision 2022/382 of March 4, 2022, which activated TP for Ukrainians due to the war. Currently, TP status allows you to stay in EU countries until March 4, 2027 (the term has been extended), but each country has its own rules regarding travel outside the country where TP is granted.

Freedom of movement with temporary protection

In general, European legislation allows Ukrainians with temporary protection to travel to Schengen countries for up to 90 days within a 180-day period without a visa. However, each country sets its own restrictions on leaving its territory.

Poland

➤ Restrictions on leaving. Leaving Poland for more than 30 days in a single trip may result in the loss of temporary protection status, as it is considered that you no longer need protection. This rule is related to the requirement of physical presence in the country.

➤ Travel within the Schengen area. With a TZ, you can travel to other Schengen countries for up to 90 days within a 180-day period without a visa, but you cannot work or receive benefits there.

➤ Pros. Large Ukrainian diaspora, relatively low cost of living, simplified procedures for obtaining a residence permit.

➤ Cons: Strict restrictions on leaving the country (30 days).

Germany

➤ Restrictions on leaving the country. Germany allows you to leave the country for up to 6 weeks (42 days) without losing your residence permit. If you are leaving for longer, you must notify the immigration authorities to avoid having your status revoked.

➤ Travel within the Schengen area. Similar to Poland – up to 90 days within 180 days without additional permits.

➤ Pros. More flexible exit rules, a developed labor market for IT specialists, the possibility of switching to a residence permit after 2 years of temporary residence, provided you are financially independent.

➤ Cons. Higher cost of living (rent in large cities – €800–1200/month).

Portugal

➤ Restrictions on departure. Portugal has some of the least stringent rules. Leaving the country (including to Ukraine) for up to 90 days does not usually result in the loss of your temporary residence permit, provided you return and notify the migration authorities.

➤ Travel within the Schengen area. The same 90/180 days without a visa.

➤ Pros. Low cost of living (rent in Lisbon is €600–1000/month, cheaper in smaller cities), preferential tax program Non-Habitual Resident (NHR) for freelancers (10–20% tax on certain incomes).

➤ Cons. Less developed infrastructure for Ukrainians compared to Poland or Germany.

Netherlands

➤ Restrictions on departure. Departures of up to 2–3 months do not usually result in the cancellation of your residence permit if you notify the immigration service (IND). Returning to Ukraine for a long period may raise questions, but short-term trips are allowed.

➤ Travel within Schengen. 90/180 days.

➤ Pros. High standard of living, flexible rules, support for freelancers.

➤ Cons. Very high cost of living (rent in Amsterdam – €1200–2000/month).

Czech Republic

➤ Restrictions on departure. Departures of up to 30–60 days are usually allowed, but longer trips (especially to Ukraine) may require explanation. From 2025, the Czech Republic will offer a transition to long-term residence after 2 years of temporary residence, provided that the person is economically independent.

➤ Travel within Schengen. 90/180 days.

➤ Pros. Affordable cost of living (rent in Prague – €600–900/month), many opportunities for residence permits.

➤ Cons. Stricter language requirements for long-term legalization.

Recommendation: if freedom of movement is a priority for you, choose Germany (up to 42 days of travel), Portugal (up to 90 days), or the Netherlands (flexible rules). Always notify the immigration authorities before leaving to avoid problems.

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Tax residency and working through a Ukrainian sole proprietorship with temporary protection

Can I work through a Ukrainian sole proprietorship?

Yes, you can continue to work through a Ukrainian sole proprietorship even while abroad under temporary protection. According to the Tax Code of Ukraine (Art. 14.1.213), you remain a tax resident of Ukraine if:

● You have a permanent place of residence in Ukraine (registered address).

● Your center of vital interests (family, business, real estate) is in Ukraine.

● You are in Ukraine for more than 183 days a year.

● You are registered as an individual entrepreneur in Ukraine.

As an individual entrepreneur on a simplified system (3rd group, 5% or 3% + VAT), you pay:

● Single tax: 5% of income (or 3% + VAT).

● Unified social tax: 22% of the minimum wage (in 2025 – ~1760 UAH/month, but until the end of martial law + 12 months, you do not have to pay if you have no income).

You can receive income to Ukrainian bank accounts of individual entrepreneurs, even while abroad, and this does not contradict Ukrainian legislation.

Tax residency abroad

If you are in another country for more than 183 days a year, that country may consider you its tax resident. It depends on its legislation. For example:

● In Poland, you become a tax resident if you spend more than 183 days there or have your center of vital interests (work, family) there.

● In Germany, residency is determined by 183 days or the presence of permanent residence.

● In Portugal, it is similar, but there is a preferential NHR program.

If a country recognizes you as its tax resident, it may require you to declare all your income (including income from sole proprietorship) and pay taxes at local rates (for example, 12-32% in Poland, 15-45% in Germany).

How to avoid double taxation?

Ukraine has double taxation agreements with 74 countries, including most EU countries (Poland, Germany, the Czech Republic, Portugal, the Netherlands, etc.). These agreements allow you to:

● Credit taxes paid in Ukraine against tax liabilities in your country of residence.

● Avoid paying taxes in the country of residence if you confirm that you pay them in Ukraine.

What you need to do:

1. Obtain a Certificate of Tax Residency in Ukraine:

– Submit an application through the Electronic Taxpayer's Office.

– Issued within 10 working days in Ukrainian and English.

– Submit this certificate to the tax authorities of the country of residence.

2. Keep the following documents:

– Statements of payment of single tax and social security contributions in Ukraine.

– Contracts, invoices, and work completion reports to confirm the source of income.

3. Declare your income in Ukraine:

– Submit an annual individual entrepreneur tax return (even if you have no income).

– If you have received foreign income (not through an individual entrepreneur), declare it at a rate of 19.5% (18% personal income tax + 1.5% military tax until January 1, 2025).

4. If the country of residence requires payment of taxes:

– Submit a certificate of tax payment in Ukraine. For example, if you paid 5% single tax, this amount will be credited to your tax liabilities in the country of residence. If the local tax is higher (for example, 15% in Bulgaria), you will only pay the difference.

If there is no income through an individual entrepreneur:

● Single tax: for the 3rd group, payment does not depend on income, but until the end of martial law, you do not have to pay if there is no activity.

● Unified social tax: not payable until the end of martial law + 12 months if there is no income.

● Reporting: submit zero declarations to avoid penalties.

It is not necessary to close your sole proprietorship if you plan to resume activity. But if you are sure that you do not need a business in Ukraine, closing it will simplify the bureaucracy.

Do you need to open a sole proprietorship in your country of residence?

It is not necessary to open a local sole proprietorship or company if:

● You remain a tax resident of Ukraine.

● Your clients pay to Ukrainian sole proprietorship accounts.

● You confirm your tax payments in Ukraine through the UPTD.

However, if you plan to obtain long-term legalization (temporary or permanent residence), some countries (e.g., Poland, Czech Republic) may require local business registration as a basis for temporary residence. In this case, you will have to:

● Open a local sole proprietorship or company.

● Report to the tax authorities of both countries.

● Submit reports on controlled foreign companies (CFC) in Ukraine if the company's income exceeds UAH 2 million/year.

Which countries are cheaper to live in and more profitable to pay taxes in?

Here are a few EU countries that combine low living costs with favorable tax conditions for freelancers:

Bulgaria

➤ Living costs. Among the lowest in the EU. Rent in Sofia is €300–600/month, and food and transportation are inexpensive.

➤ Taxes. A flat rate of 10% on personal income — one of the lowest in the EU. A double taxation agreement with Ukraine allows Ukrainian taxes (5% for sole proprietors) to be credited.

➤ Advantages. Cheap living, simple conditions for a business residence permit, flexible rules for leaving the country (up to 60–90 days).

➤ Disadvantages. Less developed labor market for IT specialists.

Hungary

➤ Cost of living. Rent in Budapest is €400–700/month, cheaper in smaller cities. Life is affordable.

➤ Taxes. 15% personal income tax. There is a simplified KATA system for freelancers (low fixed taxes), but it is only available to residents. The tax treaty with Ukraine is in effect.

➤ Advantages. Low costs, simplified conditions for residence permits through business.

➤ Disadvantages. Less support for Ukrainians compared to Poland.

Portugal

➤ Cost of living. Rent in Lisbon is €600–1000/month, in smaller cities – €400–700. Food and transportation are affordable.

➤ Taxes. The Non-Habitual Resident (NHR) program offers a 10–20% tax on income from freelance or IT services for 10 years. Double taxation agreement with Ukraine.

➤ Advantages. Flexible exit rules, pleasant climate, preferential taxation.

➤ Disadvantages. Bureaucracy when applying for a residence permit.

Poland

➤ Cost of living. Rent in Warsaw or Krakow – €500–800/month. Cheaper in smaller cities.

➤ Taxes. 12–32% PIT for residents, but the UPT allows Ukrainian taxes to be credited.

➤ Advantages. Large Ukrainian community, simplified procedures for residence permits.

➤ Disadvantages. Restrictions on departure (30 days).

Czech Republic

➤ Cost of living. Rent in Prague is €600–900/month, cheaper in the regions.

➤ Taxes. 15–23% on personal income, DTA with Ukraine.

➤ Advantages. Many opportunities for residence permits, developed labor market.

➤ Disadvantages. Language requirements for long-term legalization.

Legalization after temporary protection: prospects and opportunities

The temporary protection measure is valid until March 2027, but may be canceled earlier if the situation in Ukraine stabilizes. For a long-term stay, you will need to obtain a residence permit.

The most common grounds:

● Employment. In Germany – a “Blue Card” for IT specialists with an income of €45,000/year. In Poland or the Czech Republic – a work residence permit.

● Business. Opening a sole proprietorship or company (Poland, Czech Republic, Hungary).

● Education. Residence permit through education (Czech Republic, Poland).

● Family reunification. If you have relatives with a residence permit/permanent residence.

Important: the period under a temporary residence permit is usually not counted towards the length of stay for permanent residence (for example, in Germany or Poland), so plan your residence permit in advance.

Legal assistance with migration issues for Ukrainians

The Visit Ukraine team of lawyers helps Ukrainians deal with all migration issues. Our specialists provide:

● advice on temporary protection, residence permits, and other statuses for legalization abroad;

● assistance with the preparation of necessary documents in Ukraine and abroad;

● assistance in choosing a country to move to depending on your budget and legalization plans, support in finding a job and enrolling in foreign universities;

● services for obtaining visas and permits for long-term stays abroad.

Contact Visit Ukraine lawyers to get an individual migration strategy without the risk of fines or loss of status.

To sign up for a consultation:

1. Select a convenient format (support, written or oral consultation).

2. Fill out the form with your details (full name, email, contact phone number).

4. Select a convenient date for the consultation.

5. Read the terms and conditions of the agreement and make the payment.

Not sure which consultation format to choose? Contact our managers via Telegram or WhatsApp – they will help you choose the best option for your situation.

Visit Ukraine is your reliable legal partner abroad!

We remind you! In the previous article, Visit Ukraine lawyers explained how Ukrainian citizens can enter Ukraine in a car with European license plates and what consular assistance is — read more at the link.

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