Ukrainians Abroad: Do They Have to Pay Taxes on Mini-Jobs in Europe.

According to ТСН: Millions of Ukrainians who have left for Europe due to the war are facing an important question: do they need to declare their income, such as salary from a 'mini-job' or social benefits in Ukraine? Even if these incomes are not subject to taxation abroad, the Ukrainian tax service may require tax payments in the country.

We approached Pavlo Sebastyanovych, a tax expert, who explained the rules for citizens working and residing abroad.

Pavlo Sebastyanovych notes that in some countries, where income tax is lower than in Ukraine, exceptions may arise. However, in Europe, taxes are usually higher, and the taxpayer will have to pay the difference in Ukraine.

Tax Case: A Ukrainian Woman in Germany and Taxation of Mini-Jobs

Let's consider the case of a Ukrainian refugee living in Germany for three years, receiving social benefits and working a 'mini-job', earning 520 euros per month, which is not subject to taxation in Germany.

If the Ukrainian tax service requires the submission of an income declaration, a woman who has lived abroad for more than 180 days becomes a tax resident of Germany but remains a resident of Ukraine, as there is no automatic exit procedure from tax residency.

She submits a declaration, indicating social benefits and salary from the mini-job. Social benefits are not taxed; however, 520 euros in Ukraine are considered income and are subject to taxation: 18% income tax and 5% military tax.

“But here it should be noted that our people live in countries with a high standard of living. And the mentioned 520 euros are spent immediately upon receipt. Therefore, the question is: what profits can there be here?” — says Pavlo Sebastyanovych.

How Foreign Income is Taxed in Ukraine?

Those Ukrainians who must declare their incomes should know that in Ukraine foreign incomes are taxed at a rate of 18% income tax and 5% military tax.

• Income Tax (18%): “If you paid a profit tax of 18% or more in Germany, then you do not need to pay this tax in Ukraine.”

• Military Tax (5%): “Military tax must be paid in Ukraine on the total amount of income received abroad.”

Action Algorithm for Declaration

1. Declaration: “By May 1, 2026, you are required to submit an annual income declaration in Ukraine.”

2. Certificate: “To avoid paying 18% income tax again, you need to obtain a certificate from the German tax office regarding the paid tax.”

3. Payment: “Based on the declaration, you need to pay 5% military tax.”

Data Exchange and Ukrainian Specificity

Data Exchange (CRS): “Starting in 2024, Ukraine and Germany began to automatically exchange data on bank accounts.”

Summary: “You will most likely not pay 18% tax, but the 5% military tax is what Ukraine expects from you.”

The expert emphasizes that in Ukraine there is a unique tax situation where even incomes from minimum wages are taxed. This is not a European practice, and Ukrainians living abroad can challenge the demands of the Ukrainian tax authorities.

The author notes that this is his reformist view of the situation, and precise information should be obtained directly from the tax service.