🇺🇦How to Receive International Payments in Ukraine

Ukraine's foreign exchange system has operated under wartime restrictions since February 2022. The National Bank of Ukraine (NBU) introduced a set of emergency currency controls under Resolution No. 18 (2022) and subsequent amendments, significantly altering the operating environment for freelancers and individual entrepreneurs receiving foreign payments. Despite these restrictions, the IT and freelance sector continues to operate, and the NBU has made specific accommodations to facilitate export income.

The hryvnia (UAH) has been pegged to the US dollar under a managed rate since the start of full-scale hostilities, though the NBU announced a move toward a more flexible rate regime in October 2023. Banks continue to process inward international wire transfers, and payment platforms such as Payoneer remain operational for Ukrainian account holders.

The most significant currency control affecting freelancers is the mandatory conversion rule: upon receiving foreign currency into a business (FOP — Фізична Особа Підприємець) account at a Ukrainian bank, the entrepreneur is required to convert 50% of the foreign currency to hryvnia within five business days of receipt. As of mid-2025, the NBU has reduced the mandatory conversion requirement from the initial 100% to 50%, reflecting the improved but still constrained foreign exchange position of the country. The precise rate is periodically adjusted by NBU resolution — check NBU Resolution No. 44 (2024) or the current operative resolution before processing a large payment, as the mandatory sale percentage has been revised multiple times.

Foreign currency proceeds that are not subject to the mandatory sale requirement include transfers from accounts held abroad by FOP holders under certain exemptions, and amounts already converted voluntarily before the regulatory deadline. The remaining 50% can be held in foreign currency in the FOP account or converted at the FOP's discretion.

The FOP (Фізична Особа Підприємець — Individual Entrepreneur) status is the primary legal form used by Ukrainian freelancers, particularly in the IT sector. FOP registration is governed by the Law of Ukraine on State Registration of Legal Entities, Individual Entrepreneurs and Public Organisations. The process has been substantially digitised and can be completed through the Diia application or the Diia.Business portal (business.diia.gov.ua) without a physical visit to a state registrar.

Ukraine's simplified tax system for FOPs is divided into Groups 1, 2, and 3. The vast majority of IT freelancers and remote workers register as Group 3, which covers entrepreneurs whose annual revenue does not exceed UAH 7,818,900 (the equivalent of EUR 167,000 at the pre-war rate; the threshold is indexed annually). Group 3 allows receipt of income from foreign clients and is designed for service-export oriented businesses.

Under Group 3, the income tax rate is 5% of gross revenue — there are no expense deductions. All foreign currency received into the FOP account is recalculated to UAH at the NBU exchange rate on the day of receipt, and 5% income tax is due on that UAH amount quarterly. The filing deadlines are the 40th day following the end of each calendar quarter.

Social security contributions (Єдиний Соціальний Внесок — ЄСВ / ESV) are mandatory for Group 3 FOPs. The minimum ESV contribution is 22% of the minimum wage per month (regardless of actual earnings), though contributions are capped at the maximum base of 15 minimum wages. During the period of martial law, FOPs have been temporarily exempt from minimum ESV payments in months they had zero or very low income, under legislation enacted in 2022. Confirm current exemption rules with the State Tax Service (tax.gov.ua) as martial law provisions are periodically renewed.

The State Tax Service (Державна Податкова Служба України) administers FOP registration for tax purposes. FOPs must maintain a single-entry income ledger (Книга обліку доходів) recording each payment received, the foreign currency amount, and the UAH equivalent at the NBU rate. This ledger is submitted electronically as part of the quarterly tax declaration.

Payoneer is by far the most widely used international payment platform among Ukrainian freelancers. It operated continuously throughout the war with minimal service disruption to Ukrainian FOP account holders. Payoneer provides a US virtual bank account (ACH routing + account number) and EUR IBAN, which can receive payments from international clients and marketplace platforms. Withdrawal to a Ukrainian hryvnia bank account is processed by Payoneer and arrives typically within one to three business days. The platform also allows holding balances in USD, EUR, and GBP before initiating withdrawal, which can be useful given the mandatory conversion rules — initiating conversion when preferred rather than immediately upon client payment.

Wise has historically offered services to Ukrainian users, but availability has been limited and intermittent since 2022 due to compliance requirements related to sanctions and the conflict. As of 2025, Wise supports transfers to Ukrainian bank accounts in UAH, but opening a Wise account for inbound payment collection (where a client sends to Wise's US or EU accounts and Wise routes to Ukraine) requires verification of Ukrainian residency. Confirm current service status at wise.com before relying on Wise as a primary channel.

Direct SWIFT wire transfers to a Ukrainian bank account in USD or EUR remain a legally supported option for FOPs. The main commercial banks — PrivatBank, Monobank (Універсал Банк), Oschadbank, PUMB, Raiffeisen Bank Ukraine, and OTP Bank Ukraine — continue to process international SWIFT transfers. Share your IBAN (Ukrainian IBAN format: UA + 27 digits), bank name, SWIFT code, and your full name and legal address as registered for FOP purposes. PrivatBank's SWIFT code is PBANUA2X; Raiffeisen Ukraine's is RAIFUA2K.

For freelancers on Upwork, Toptal, or similar platforms, Payoneer integration is the most reliable route. Upwork supports direct withdrawal to a Ukrainian bank account in UAH via local transfer as well (the Upwork Direct to Local Bank option), which bypasses the Payoneer layer for those who prefer it.

Register your FOP before receiving your first significant payment. FOP registration through Diia takes approximately 24 to 72 hours for processing. You will need your passport data, individual taxpayer number (РНОКПП), and to confirm the applicable simplified tax group. Group 3 is the default for IT freelancers with foreign clients. Your FOP registration gives you a EDRPOU code (individual entrepreneur code) that banks require when opening a business current account.

Open a dedicated FOP current account (Поточний рахунок ФОП) at a Ukrainian bank separate from your personal account. Banks such as PrivatBank and Monobank offer FOP accounts through their mobile apps. International payments should always arrive to the FOP account, not a personal account — mixing personal and FOP funds creates accounting complications and may cause the bank to flag transactions.

Maintain a detailed income log (Книга обліку доходів) in the format prescribed by Ministry of Finance Order No. 579 (2011 as amended). Record each payment: the date, the client's name and country, the foreign currency amount, the UAH equivalent at the NBU rate on the receipt date, and the FOP account the payment arrived into. This log is your primary document for quarterly tax declarations.

For the mandatory foreign currency conversion, your bank will typically initiate this automatically within the regulatory window unless you take action. If you wish to convert at a specific rate, monitor the UAH/USD market and convert manually before the five-business-day deadline. The consequence of missing the mandatory conversion deadline is a fine under NBU regulations, so either convert proactively or confirm your bank has done it automatically.

Group 3 FOP income tax is 5% of gross UAH-equivalent revenue, paid quarterly. The tax base is the full amount received — no deductions for client acquisition costs, software subscriptions, or equipment. This flat percentage model is straightforward but means your effective tax burden compared to a net-income system depends entirely on your gross margin. For IT freelancers with high-value service contracts and low direct costs, 5% of gross is often competitive with European or North American tax systems.

The quarterly tax payment deadlines are: Q1 — by 10 May; Q2 — by 10 August; Q3 — by 10 November; Q4 — by 10 February of the following year. The quarterly declaration (Податкова декларація платника єдиного податку) is filed electronically through the State Tax Service taxpayer portal (cabinet.tax.gov.ua) or via authorised accounting software. Late filing carries a penalty of UAH 340 per missed deadline.

ESV (єдиний соціальний внесок — unified social contribution) for Group 3 FOPs is 22% of the minimum wage base per month (minimum base as of 2025: approximately UAH 7,100 per month), resulting in roughly UAH 1,562 per month in minimum ESV. ESV contributions count toward pension credit and certain social insurance entitlements. Higher voluntary contributions increase the pension base. During periods of martial law, specific exemption provisions may apply — check the State Tax Service website for current martial law exemption status.

Ukraine has a network of double taxation treaties with over 70 countries, including the US, UK, Germany, the Netherlands, and Poland. These treaties generally provide that independent contractor income is taxable only in Ukraine if the contractor is resident in Ukraine and does not maintain a fixed base in the other country. If a foreign client withholds taxes on payments, treaty relief may be available — your Ukrainian tax advisor (бухгалтер) can assist in preparing the required foreign tax credit documentation.