As outlined in the previous posts, the Diia City regime provides a special legal and tax framework designed for IT businesses. However, access to these advantages is conditional upon meeting statutory eligibility criteria and maintaining ongoing compliance.
Core eligibility criteria
To qualify as a Diia City resident, a company must:
- Be a legal entity duly registered in Ukraine
- Carry out permitted IT activities (e.g., software development, IT consulting, game development, data processing, etc.)
- Ensure an average monthly remuneration of at least EUR 1,200 per employee and/or gig specialist
- Maintain an average of at least 9 employees and/or gig specialists
- Generate at least 90% of total income from permitted activities
In addition, a company will not qualify if it falls within certain statutory restrictions (anti-criteria), including, for example:
- Being registered under the laws of a foreign state
- Having the status of non-profitable organisation
- Failure to disclose ultimate beneficiary owners and/or ownership structure
- Being subject to sanctions or other restrictions
- Having tax debt exceeding permitted thresholds
- Engaging in organizing or conducting gambling (excluding some gambling-related services)
- Other statutory restrictions
Startup option
Legislation also provides for special rules for startups, i.e. legal entities that do not yet meet all standard eligibility criteria, but may have Diia City resident status during a grace period, provided that:
- They comply with core eligibility criteria, except for remuneration and headcount requirements
- They were incorporated no earlier than 24 months prior to application
- Their annual income does not exceed the statutory cap (approximately EUR 200,000 in 2026) in specific periods
The grace period for startups lasts until 31 December of the calendar year following the year of their admission to Diia City. If, upon expiry of the grace period, the company meets all standard eligibility criteria, it may continue its Diia City residency without interruption.
Registration
Diia City residency is obtained on a voluntary basis through submission of an application to the Ministry of Digital Transformation of Ukraine. Applications are generally reviewed within 10 business days from the date of receipt.
Companies granted Diia City resident status are included in a publicly available register, accessible here: https://city.diia.gov.ua/en/registry/resident.
A Diia City resident must ensure continuous and full compliance with all eligibility criteria throughout the entire period of residency. Failure to do so may result in termination of resident status.
