Launched in 2022, Diia City is Ukraine's special legal and tax regime designed specifically for technology companies. If you are a founder or an operator weighing where to build, its adoption curve is worth understanding — and it is a quietly encouraging story of policy done well.
The numbers
By November 2025, Diia City had surpassed 3,000 resident companies uniting more than 130,000 IT specialists, and residents had contributed roughly UAH 55 billion in taxes since launch. Both the number of residents and the taxes they pay have been growing rapidly year over year.
Why founders opt in
The appeal is a predictable, competitive tax framework. Key features reported by legal advisers include:
- 5% personal income tax on qualifying specialists' salaries, versus the standard 18%.
- A unified social contribution charged at 22% of the minimum wage (rather than full salary).
- A corporate choice between standard 18% corporate income tax or a 9% tax on distributed profit ("exit capital tax") — so companies that reinvest are not taxed until they distribute.
The bigger point
Diia City shows a government deliberately competing for tech investment with clear rules and real incentives — and the market responding. For international partners, including those in Singapore evaluating where to base R&D or joint ventures with Ukrainian teams, it provides a transparent, well-defined structure to work within. That predictability is exactly what cross-border collaboration needs.