Compare taxes and see how much you save moving from Ukraine to Germany
Germany has become home to over 1 million Ukrainian refugees and labor migrants since the 2022 Russian invasion. Ukrainians with Temporary Protection Status (TPS) in Germany are entitled to work and are subject to German employment tax (PAYE/Lohnsteuer) from their first day of work. Ukraine's combined income tax (18% flat + 5% military levy = 23% effective) is significantly lower than German combined rates (40–48%+ at similar income levels). The UAH/EUR exchange rate has been volatile since 2022, significantly affecting the value of Ukrainian-side assets for diaspora.
Flat 18% PIT + 1.5% Military Levy
Ukraine's personal income tax (PIT) is a flat 18% on most income. The Military Levy (introduced 2014, increased to 5% in 2024 from 1.5%) adds a surcharge on most personal income, bringing the effective combined rate to 23%. Employee unified social contribution (USC): 22% employer-side (not deducted from employee's net). Capital gains on securities: 18% + 1.5% military levy. Ukraine taxes residents on worldwide income; non-residents taxed on Ukrainian-source income.
Progressive Finanzamt Tax, Basic Allowance €11,604
Germany taxes residents on worldwide income at progressive rates 14–45% (Einkommensteuer). Solidarity surcharge (Solidaritätszuschlag) now only applies above ~€73K single income. Employee social contributions: health 7.3% + pension 9.3% + unemployment 1.3% + care insurance 1.7% = ~19.6% employee; employer matches approximately. Church tax 8–9% of income tax applies unless formally opted out. Capital gains on investments: 25% flat (Abgeltungsteuer).
At €35,000 annual income:
A Ukrainian worker earning €35,000 in Germany pays approximately 38–42% combined (income tax + social contributions). In Ukraine, the same income at UAH equivalents would face 23% combined (18% PIT + 5% military levy) with a much lower absolute tax amount. German wages are typically 4–8× Ukrainian equivalents for professional roles, making Germany financially compelling despite the higher tax rate.
| Income | UA Tax | DE Tax | Savings | 10-Year |
|---|---|---|---|---|
| €25,000 | ~23% UA | ~32% DE (income tax + social) | Germany 9% higher | German pension contributions build retirement credit |
| €45,000 | ~23% UA | ~42% DE | Germany 19% higher | German healthcare (statutory) included in social contributions |
| €90,000 | ~23% UA | ~50% DE (progressive + solidarity) | Germany 27% higher | German state provides strong social safety net in return |
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Get Compliant Cross-Border Employment →Yes — Ukrainians who work in Germany under Temporary Protection Status are subject to German employment tax (Lohnsteuer) from their first day of work. Employers withhold income tax, solidarity surcharge (if applicable), church tax (if registered), and social contributions (health, pension, unemployment, care insurance). Ukrainian refugees are treated as German tax residents for the period they live and work in Germany. They file a German income tax return (Einkommensteuererklärung) if they have multiple income sources or if it benefits them.
Ukraine taxes residents on worldwide income, but the residency definition requires physical presence in Ukraine for 183+ days in a calendar year. Ukrainians who have relocated to Germany and are present there for 183+ days are generally not Ukrainian tax residents for that year. However, Ukrainian-source income (rental property in Ukraine, Ukrainian business income) may remain taxable in Ukraine regardless of residency. Ukraine has a tax treaty with Germany that provides relief to prevent double taxation.
Popular options for EUR-to-UAH transfers: Wise (real exchange rate, transparent fees), Western Union (fast, available even in conflict-affected areas), MoneyGram, and bank transfers through Ukrainian banks (PrivatBank, Monobank have European transfer capabilities). Wise typically offers competitive rates for EUR/UAH. The UAH/EUR rate has been managed by the National Bank of Ukraine within a controlled range — transfers during business hours typically get the most favorable rates.