On 21 February 2025, the Cabinet of Ministers of Ukraine, by Resolution “On Amendments to the List of Activities Encouraged by the Creation of Diia City Legal Regime” No. 204 (the “Resolution”), expanded the list of eligible activities for Diia City residency.
Previously, among other qualified activities, the scope of research and development (the “R&D”) activities eligible for Diia City residency was limited to R&D in IT and telecommunications.
Now, Diia City regime is available for companies engaged in R&D in any sector, including defence technologies, biotechnology, microelectronics, genetic engineering, etc.
Additionally, the Resolution provides further clarification for certain already existing categories, in particular, recognising web analytics as part of digital marketing services and battery production as part of UAV manufacturing.
Diia City is a special legal and tax regime aimed to foster the growth of Ukraine’s technology and innovation sectors by offering certain benefits for its residents, in particular:
- a special corporate income tax regime;
- flexible employment models;
- additional instruments for IP protection; and
- English law instruments.
By Mykola Stetsenko, Managing Partner, and Andriy Romanchuk, Counsel, Avellum
