Freedom24 and Taxes in Ukraine: Dividends, Declaration and the D-Account

Freedom24 is a European broker popular among Ukrainians, offering access to US and European stocks and ETFs. But, like Interactive Brokers, it doesn't pay Ukrainian taxes for you. Here's what income arises at Freedom24, how it's taxed, and what to do with accruals from the discontinued D-account.

Freedom24 is often considered by Ukrainian investors looking for access to US and European stocks, ETFs, bonds and other exchange-traded instruments. The broker operates through the Cypriot company Freedom Finance Europe Ltd, holds a European license and lets you open an account without a large mandatory initial deposit.

But along with access to foreign markets, the investor takes on the obligation to deal with Ukrainian taxes on their own. Freedom24 does not calculate or pay Ukrainian PIT and military levy for its Ukrainian clients.

In this article we cover what income can arise at Freedom24, which Ukrainian tax rates apply, how the W-8BEN form works, where to find broker reports, and what happened to the once-popular D-account.

What is Freedom24

Freedom24 is the trading name of Freedom Finance Europe Ltd, an investment company registered in Cyprus and licensed by the Cyprus Securities and Exchange Commission (CySEC).

Through the platform you can invest in:

• stocks of US and European companies;
• exchange-traded funds (ETFs);
• government and corporate bonds;
• options and other available financial instruments.

The broker advertises access to major exchanges in the US, Europe and Asia. There is no mandatory minimum deposit, though the actual entry threshold depends on the price of the specific asset and the client's plan.

For a Ukrainian investor, Freedom24 can be an alternative to Interactive Brokers and other foreign brokers. The tax logic, however, remains the same: the foreign broker provides reports, but the Ukrainian declaration is the investor's own responsibility.

Is Freedom24 a tax agent in Ukraine

Freedom24 is not a Ukrainian tax agent for its Ukrainian clients' income. This means the broker:

• does not calculate Ukrainian PIT;
• does not withhold the Ukrainian military levy;
• does not file the income declaration on the client's behalf;
• does not pay Ukrainian taxes on stock or ETF sale results.

At the same time, don't assume that a Freedom24 account is invisible to the Ukrainian tax authority.

Freedom Finance Europe collects information about its clients' tax residency and operates under the international CRS standard. Under CRS, financial institutions report data to local tax authorities, which can then be exchanged with the client's country of tax residence.

Ukraine already participates in the automatic exchange of information on foreign financial accounts. So the correct framing is: Freedom24 does not fulfill the investor's Ukrainian tax obligations, but account information can be shared with the Ukrainian tax service (DPS) through international exchange.

What income from Freedom24 you need to account for

A Freedom24 investor most commonly receives three main categories of income:

1. Dividends from stocks and ETFs.
2. Investment profit from selling stocks, ETFs or other assets.
3. Interest, coupons and other foreign income.

A separate historical category is D-account accruals. This product has been discontinued, but old payouts from 2024 and early 2025 can still matter for tax accounting.

Taxes on Freedom24 dividends

When a Ukrainian tax resident receives dividends from a foreign company or foreign ETF, the following Ukrainian rates apply:

• 9% personal income tax (PIT);
• 5% military levy.

You must declare the full gross dividend amount before foreign tax withholding.

A broker report usually shows three figures:

• the dividend amount before tax (gross);
• the tax withheld in the source country (withholding tax);
• the net amount credited to the brokerage account (net).

For example, a company paid the investor $100 in dividends, $15 was withheld in the US, and $85 arrived in the account. For the Ukrainian declaration, the income is not 85 but $100 in UAH equivalent at the NBU rate on the accrual date.

The fact that tax was withheld abroad does not cancel the obligation to declare the income in Ukraine. Foreign tax paid can in some cases be credited against the Ukrainian liability — but this requires proper documents, and the military levy is payable in any case. For a detailed breakdown of rates, NBU rates and examples, see Dividend Tax Guide.

W-8BEN form and US dividend tax

As a general rule, US-source dividends received by a non-resident may be taxed in the US at 30%.

Ukraine has a double taxation treaty with the US. For an ordinary Ukrainian retail investor, it provides a rate of up to 15% of the gross dividend amount.

To apply the reduced rate, the investor must have a valid W-8BEN form and meet the treaty conditions: be a Ukrainian tax resident and the beneficial owner of the income. The logic is simple:

• without confirmation of treaty eligibility, 30% may apply;
• with a valid W-8BEN, 15% usually applies.

Don't automatically extend this rule to every possible payout: some distributions from REITs, partnerships or complex instruments may have a different withholding regime.

Check your W-8BEN status in the Freedom24 account area. If the form is expired or filled out incorrectly, the actual rate in the report may differ.

Taxes on selling stocks and ETFs

Selling stocks or ETFs doesn't mean the entire sale amount is taxed. What's taxed is investment profit — the positive difference between the sale proceeds and documented acquisition costs. The rates:

• 18% PIT;
• 5% military levy.

For example, an investor bought an ETF for $1,000 and later sold it for $1,300. Before commissions and currency conversion, the investment profit is $300, not $1,300.

If acquisition costs are not documented, the tax authority may refuse to recognize them in the calculation. That's why you should keep broker reports not only for the year of sale but also for the period when the asset was purchased.

Unrealized appreciation by itself doesn't create tax: if a stock went up but you haven't sold it, no investment profit has arisen yet.

Taxation is based on the overall financial result of investment transactions for the calendar year — profitable and losing sales are analyzed together. For the FIFO method, exchange-rate effects and calculation examples, see Stock Tax Guide.

Interest, coupons and other income

Besides dividends and securities sales, other income can arise at Freedom24:

• coupon payments on foreign bonds;
• income from redemption of debt instruments;
• interest payments;
• results of derivative transactions;
• bonuses or other cash credits, if they qualify as taxable income.

Not every payout from a foreign broker is a dividend. The 9% rate applies specifically to income that legally constitutes a dividend. For most other foreign income, the baseline approach is 18% PIT + 5% military levy.

The income category should be determined by the nature of the payment and the broker's documents — not just by the label shown in the mobile app.

What happened to the Freedom24 D-account

Freedom24 used to offer a D-account, where clients could place idle US dollars or euros and receive daily accruals. The rate for dollar funds was linked to SOFR, and for euro funds to the weekly EURIBOR. Because of the daily payouts, a year's broker report could contain many small transactions.

However, the D-account was not an ordinary bank deposit. In Freedom24's official documents it was described as an investment product whose income was generated through securities swaps: economically the client saw interest-like daily accruals, but legally the product was tied to derivative transactions.

On May 12, 2025, the D-account program was terminated in accordance with the requirements of the Cypriot regulator CySEC, and from May 13 the funds, together with accrued interest, were automatically returned to clients' brokerage accounts. The product is no longer in Freedom24's current terms, so reviews quoting "current" D-account rates are outdated.

How to tax old D-account accruals

D-account accruals were not dividends, so the preferential 9% PIT rate does not apply to them. The most defensible approach:

• 18% PIT;
• 5% military levy.

At the same time, it's important to determine the income category correctly. Because the D-account was built on securities swaps, its payouts may qualify as investment profit from derivative transactions. The Ukrainian Tax Code includes periodic and one-off payments under a derivative contract in such profit. That's why the simplified framing "it's just ordinary foreign bank interest" may not be precise enough.

The practical takeaway:

• it's not a dividend — the 9% rate doesn't apply;
• the baseline is 18% PIT plus 5% military levy;
• what's taxed is the income (accruals), not the return of the principal;
• choosing the specific declaration section requires looking at Freedom24's documents and the broker report.

Tip: if significant amounts were held in the D-account, consider getting an individual tax ruling — it will officially determine whether to declare the payouts as other foreign income or as the result of derivative transactions.

Why small D-account accruals can't be ignored

Daily accrual could produce dozens or hundreds of small transactions in the report. An investor might decide that payouts of a few cents don't matter — but the tax calculation covers the total income for the reporting year, not just the large transactions.

The main difficulties in the calculation:

• a large number of accrual dates;
• payouts in dollars or euros — each must be converted at the NBU rate for its own date;
• the need to separate income from the principal;
• varying transaction labels in the broker report.

Don't just take the final account balance or the overall change in portfolio value — you need to identify all accruals that were actually recorded as income.

How to get Freedom24 reports

The primary data source for the tax calculation should be the official broker report. In the Freedom24 account area, generate an Account Statement (Broker Report) for the full calendar year. The report should include:

• buy and sell transactions;
• dividend accruals;
• withheld taxes;
• commissions;
• cash flows;
• coupon and other payouts;
• old D-account transactions, if they occurred in the period.

Also keep reports for previous years: if an asset was bought in 2023 and sold in 2026, you need the 2023 purchase records to substantiate the costs.

Tradernet API for automated calculation

Freedom24 runs on the Tradernet infrastructure. Through the Tradernet API you can automatically retrieve the data needed for the tax calculation: the broker report, cash flows, trades and dividends.

That's exactly how Investor Tax works: add your Tradernet API key — the service loads your dividends and trades from Freedom24, applies NBU rates for each transaction date, and calculates PIT and military levy automatically.

That said, the API shouldn't be your only source of supporting documents. Keep official PDF statements from the broker in your own archive: the API is convenient for data processing, while the official Account Statement backs up your calculation before the tax authority.

Common mistakes of Freedom24 investors

Assuming the broker has already paid all taxes

Tax withheld in the US or another country is not automatically paid Ukrainian PIT and military levy. Foreign income must be declared in Ukraine.

Declaring only the amount withdrawn to a bank card

The tax obligation doesn't depend on withdrawing money from the broker. Dividends are income at the moment they're credited to the brokerage account, and the investment result arises when the asset is sold.

Taxing the entire sale amount

Tax is calculated on investment profit, not on total turnover. Documented acquisition costs must be taken into account.

Applying 9% to D-account payouts

The D-account did not pay dividends. For those accruals, use 18% PIT and 5% military levy as the baseline.

Ignoring small daily payouts

Dozens of small D-account accruals or minor ETF dividends still add up to annual income that must be declared.

Believing W-8BEN cancels Ukrainian taxes

W-8BEN only concerns US withholding. It does not exempt a Ukrainian tax resident from filing a declaration in Ukraine.

Relying solely on the app's profit figure

The Portfolio P&L figure is not a ready-made tax calculation: it may include unrealized gains, currency effects and other components that don't match the Ukrainian tax base.

What to prepare for the declaration

Before calculating taxes, gather:

1. The full Freedom24 broker report for the calendar year.
2. Reports for the years when sold assets were purchased.
3. A list of dividends with gross (pre-withholding) amounts.
4. Information on taxes withheld abroad.
5. A list of all stock and ETF sales.
6. Documented acquisition costs.
7. Information on coupon and other payouts.
8. The D-account history, if it was used before the product was discontinued.
9. Documents for a possible foreign tax credit.

The more transactions you had during the year, the less reliable a manual spreadsheet calculation becomes — especially with partial sales, purchases of the same asset on different dates, dividends, and old daily D-account accruals.

Conclusion

Freedom24 gives Ukrainian investors access to international stocks, ETFs, bonds and other instruments, but does not act as a Ukrainian tax agent. A Ukrainian resident independently identifies the income received, calculates investment profit, files the declaration and pays the taxes.

Baseline rates: foreign company dividends — 9% PIT + 5% military levy; investment profit, interest and most other foreign income — 18% PIT + 5% military levy.

The D-account was closed in May 2025, but investors who received daily accruals before its termination must include them in their tax calculation. Those payouts are not dividends, and given the product's securities-swap structure they may be treated as the result of derivative transactions.

This material is for informational purposes only and does not constitute individual tax, legal or investment advice. For significant amounts, complex transactions or determining the exact category of D-account payouts, consult a tax professional.