In brief
- A freelancer is someone who carries out work on a contract basis without an employment contract. There is no such term in Ukrainian legislation.
- Legal employment: you can work either as a sole trader on the single tax scheme or as a private individual by submitting an annual tax return.
- Group 3 sole trader in 2026: 5% of income + 1% military levy + Unified Social Tax (at least 1,902.34 UAH per month); income limit — 10,091,049 UAH per year.
- Payment of the Unified Social Contribution (USC): the exemption ‘not to pay USC for oneself during martial law’ will not apply in 2026.
- Further down in the article: a comparison table (Group 2 vs Group 3 sole traders) with calculations for 2026, a checklist of first steps and criteria for choosing a trading platform.
Who is a freelancer and what do they do?
A freelancer is a colloquial term for a specialist who carries out work on a contract basis without entering into a permanent employment contract with an employer. They take on individual tasks or projects, seek out clients independently and are personally responsible for the final result.
The word derives from the English free + lancer — ‘free lancer’. The Tax Code of Ukraine (TCU No. 2755-VI) does not contain the term ‘freelancer’, so the tax authorities do not recognise a ‘freelancer’ but rather a specific legal status: an individual entrepreneur (IE) or an individual who has received income.
The chosen status determines the amount of tax payable, as well as the ability to legally receive payment from companies and foreign clients. Therefore, a freelancer’s first decision is not which platform to choose, but how to register their income.
How much can a freelancer earn: what we know for certain
There are no official statistics on freelancers’ incomes in Ukraine: the State Statistics Service does not maintain a separate category, and the figures in reviews are taken from private surveys and data provided by the platforms themselves. We therefore do not quote an ‘average freelancer’s earnings’ – as this cannot be verified.
What is established by law is the upper limit on income under the simplified taxation system. The limits are linked to the minimum wage, which, from 1 January 2026, stands at 8,647 UAH per month (Article 8 of the Law of Ukraine ‘On the State Budget of Ukraine for 2026’ No. 4695-IX).
| Group of sole traders | Limit in minimum wages (Article 291.4 of the Tax Code of Ukraine) | Income limit for 2026 |
|---|---|---|
| Group 2 | 834 | 7,211,598 UAH |
| Group 3 | 1,167 | 10,091,049 UAH |
Amounts in hryvnias are calculated using the formula: limit in minimum wages × 8,647 UAH. If your income is approaching the group threshold, plan your transition to another group in advance.
How to set up as a freelancer: Sole Trader or income as an individual
Option 1. Sole Trader on the single tax scheme
For a freelancer on the simplified tax system, two single tax groups are actually suitable. The main difference lies in who you are permitted to provide services to:
- Group 2 — provision of services only to single tax payers and/or the general public (Article 291.4 of the Tax Code of Ukraine). You are permitted to have up to 10 employees.
- Group 3 — no restrictions on the client base (including working with foreign clients and legal entities under the general taxation system).
If you work with foreign clients or with companies under the general taxation system, your option is Group 3.
Option 2. Income of an individual without an individual entrepreneur (FOP)
Without registering as an individual entrepreneur (FOP), the income received is taxed as personal income:
- Personal Income Tax (PIT) — 18% (Article 167.1 of the Tax Code of Ukraine);
- Military levy — 5% (paragraph 16-1 of Subsection 10 of Section XX of the Tax Code of Ukraine).
If a foreign client makes the payment, no one will deduct tax on your behalf. Such income is included in your annual taxable income, and you are required to submit an annual tax return (paragraph 170.11.1 of the Tax Code of Ukraine).
Option 3. Employment contract with flexible working hours
If the client is prepared to register you as an employee, there is an employment contract with flexible working hours (Article 21-1 of the Labour Code of Ukraine, added by Law No. 2421-IX of 18 July 2022).
Advantages: You do not need to register as a sole trader; this is an official employment contract, and the employer calculates and pays the single social contribution (SSC) (Article 8 of Law No. 2464-VI), whilst your employment rights remain unrestricted.
Key features: The work is provided without any guarantee of permanence; you are paid for the hours actually worked (but not less than 32 hours per month). The employer is not entitled to prevent you from working for other clients.
Restrictions: An employer with fewer than 10 employees may have only one such contract. After 12 months of working under such a contract, you are entitled to request the conclusion of a standard employment contract.
Compare the tax burden: As a sole trader in tax group 3, you pay 5% single tax + 1% military levy + a fixed social security contribution. Without sole trader status — 18% personal income tax + 5% military levy on every hryvnia of income, but without the mandatory monthly social security contribution. Calculate both options based on your expected annual income.
Taxes for freelance sole traders in 2026: Groups 2 and 3
| Payment | Group 2 | Group 3 | Basis |
|---|---|---|---|
| Single tax | no more than 20 per cent of the minimum wage per month — up to 1,729.40 UAH (the rate is set by the local council) | 5 per cent of income (excluding VAT) or 3 per cent (VAT payer) | Articles 293.2 and 293.3 of the Tax Code of Ukraine |
| Military levy | 10 per cent of the minimum monthly wage — 864.70 UAH | 1 per cent of income | para. 16-1, sub-section 10, section XX of the Tax Code of Ukraine |
| Unified Social Tax (UST) | 22 per cent, not less than 1,902.34 UAH per month | 22 per cent, not less than 1,902.34 UAH per month | Article 8 of Law No. 2464-VI |
| Income limit | 7,211,598 UAH | 10,091,049 UAH | Article 291.4 of the Tax Code of Ukraine |
The amounts for 2026 are calculated based on the minimum wage of 8,647 UAH. In Group 2, payments are fixed and do not depend on the amount of income; in Group 3, the single tax and military levy are calculated on the basis of actual income.
Unified Social Tax (UST) during martial law: outdated advice
Popular articles from 2024 still state that, during martial law, sole traders may pay the Unified Social Tax ‘at their discretion’. According to the Law on the Unified Social Tax No. 2464-VI, this exemption (paragraphs 9–19 of Section VIII) has been suspended for 2025–2026. Therefore, in 2026, the minimum insurance contribution of 1,902.34 UAH per month is mandatory.
How to become a freelancer from scratch: a checklist of first steps
- Define your service and target audience: Choose a clear specialism and identify who your potential clients are (Ukrainian individuals, sole traders, Ukrainian companies or foreign clients).
- Put together a portfolio: Prepare 2–3 pieces of work that demonstrate your results (even high-quality educational or test projects will do).
- Choose a business structure: Group 3 sole trader — for foreign and corporate clients; Group 2 — for sole traders and the general public only; without sole trader status — by submitting an annual tax return.
- Register as a sole trader online: Submit your application via the app or the Diya portal (the service is free and takes around 10 minutes).
- Open a sole trader current account: Receive all payments for work carried out exclusively into your business account.
- Create a profile on freelance platforms: Register on 1–2 platforms in your niche and complete your portfolio.
- Plan your monthly payments: Take into account the mandatory social security contribution (at least 1,902.34 UAH) and taxes applicable to your tax bracket.
How to register as a sole trader online via Diya
Diya offers a service called ‘Automatic sole trader registration’:
Filling in the application takes around 10 minutes.
Registration takes place automatically, without the involvement of a state registrar.
The service is completely free of charge.
If documents are submitted outside the automatic service, they are processed within 24 hours of receipt (excluding weekends and public holidays).
How to choose a freelance platform: objective criteria
Instead of looking for subjective ‘best platforms’ rankings, compare platforms based on criteria that directly affect your net income:
| Criterion | What to check | Why it matters |
|---|---|---|
| Commission | Percentage of the transaction, fee for reviews or subscription | Reduces net income from each order |
| Niche | Are there orders specifically in your field? | A broad marketplace without your niche will yield few enquiries |
| Audience | Ukrainian or foreign clients | This determines whether Group 2 sole trader status is suitable for you |
| Payments | How does the money reach your sole trader account? | Payment must be made legally and within the limits of your category |
| Contract protection | Is there a secure contract or arbitration in place | This reduces the risk of non-payment for your work |
Remote work on Injobe today
There are 38 active vacancies on Injobe, of which 16 are marked as remote — 42.1 per cent. There is no separate ‘freelance’ category in the catalogue, so freelancers should look amongst the remote offers.
