How to become a resident of Diya.City and get a reservation

Acquiring the status of a resident of Diya City is voluntary.

To obtain such status, a legal entity must apply to the authorized body - the Ministry of Digital Affairs - with an application and necessary documents. If the requirements specified by law are met, the legal entity acquires the status of a resident of Diia City.

An enterprise acquires and loses the status of a resident of Diya City from the date of making the corresponding entry in the Diya City register.

The process of preparing for the registration of a company as a Diya City Resident, although not time-consuming in terms of registration in a special register, requires careful preparation in the context of forming a structuring and necessary documentation. In order to become a Diya City Resident, you should submit an appropriate application in electronic form.

The advantages of Residency lie not only in guarantees of intellectual property rights protection, stability of conditions, possibility of applying institutions typical of countries with the Anglo-Saxon legal system, but also in moderate tax burden. In particular, gig contracts have become a novelty, combining the terms of a civil law and employment contract, which ensures harmonization of the interests of both the Resident employer and the gig contractor; formalization of the terms of NDA and NCA, etc.

Taxes for residents of Diya City

The features of the City Act, as a special legal and tax regime, are:

1. registration as a resident of Diya City;
2. providing reporting in electronic form;
3. low tax rates: income tax 9% or 18% depending on the chosen regime; personal income tax – 5%, social security tax – 22% of the minimum wage, military service;
4. alternative employment model (in accordance with the Labor Code of Ukraine or cooperation with an individual entrepreneur, a gig contract can be signed, available only to residents of Diia City);
5. The legal regime of Diya City is established for an unlimited period, but not less than 25 years from the date of entry of the first resident of Diya City into the Diya City register (Register).

Labor tax rates: 

• 5 % – personal income tax; 
• 22% – SSC from the minimum wage; 
• 5% – military service.
• The personal income tax rate of 5% is applied to the salary starting from the calendar month following the calendar month in which the status of a resident of Deia City was acquired (except for a Deia City resident who simultaneously has the status of a resident of Defense City).
• Income of employees of a Dia City resident that was accrued (paid) in the calendar month in which the Dia City resident status was acquired is taxed at the rate of 18%.
• Investments: 0% tax for individuals on dividends from a company (provided that they are withdrawn no more than once every 2 years)
• Also, there is a possibility of receiving a tax deduction (the cost of the acquired share of the Startup is deducted from the total taxable income).

Features of the taxation system

The Tax Code of Ukraine (TCU) stipulates that a resident of Diya City may be (p.p. 14.1.282-1 PKU):

1. A taxpayer who pays corporate income tax (tax) under special conditions is a resident of Diya City who, in accordance with the established procedure (p. 141.10 of the Civil Code of Ukraine) has chosen or switched to the appropriate taxation regime;
2. a payer paying tax on general grounds – a resident of Diya City – a legal entity that is entered in the Register, but has not submitted an application for transition to taxation as a resident of Diya City – a taxpayer on special conditions – is considered a resident of Diya City – a taxpayer on general grounds.

That is, LLCs that do not consider it necessary to choose special taxation conditions for themselves or do not fall under these conditions must pay taxes and file reports under the general conditions that apply to everyone who pays corporate income tax. The tax rate in this case is 18%.

The tax rate for taxpayers under special conditions is 9%.

The reporting period is 1 year.

Legal entities pay tax not for financial results, but for individual transactions. 

In this case, the amount of taxation of each individual transaction is reduced by the amount of repatriation tax accrued (paid) for such transaction.

Special tax regime for residents of Diya City (Special regime)

The special regime provides for the possibility of business entities (BEs) to switch to corporate income tax under special conditions (tax rate 9%) and taxation of only a number of transactions, such as:

1. dividend payments;
2. interest payments in favor of non-residents - related persons, or non-residents registered in states that are "low-tax" jurisdictions;
3. providing financial assistance to a non-resident of Diya City - a payer under a special regime on non-refundable terms, or which remains unpaid for 12 calendar months;
4. free provision of property to a non-resident of Diya City – a payer under a special regime;
5. payments made in connection with investments in investment objects (including the acquisition of property) located outside the territory of Ukraine,
6. purchase of property, works, services from a non-taxpayer - non-resident, and/or transfer of property, works, services to a non-taxpayer - non-resident (if the payments or supplies exceed the annual period);
7. payment of royalties in amounts exceeding the limit and in other special cases.

To elect tax on withdrawn capital, an application is made in the online service Diya.City. For this, a special identifier is used, which is located in the electronic account, + a signature is required, which is registered with the State Tax Service. In order for taxes to be calculated according to the new form, the application must be submitted no later than 15 days before the reporting period.

Booking at Diya.City

Regarding the creation of an LLC with one employee (beneficiary, a conscripted husband), registration in Diya.City as a startup, obtaining the status of a critical enterprise, and booking an employee, you can contact AF "ZEVS" for consultation or for us to help you implement it.

Create an LLC → become a resident (old Action.City → get critical status → book an employee. 

The presence of the status of a resident of the City of Diya is already the fulfillment of one of the mandatory criteria necessary to obtain the status of a critically important enterprise (clause 7, clause 2 of the Criteria for determining enterprises, institutions and organizations that are critically important for the functioning of the economy and ensuring the vital activity of the population in a special period, as well as critically important for ensuring the needs of the Armed Forces and other military formations in a special period, approved by the Cabinet of Ministers Resolution No. 76 dated January 27, 2023; hereinafter referred to as Criteria No. 76). But other criteria are also mandatory:

1. absence of arrears in taxes to the state and local budgets and a single contribution to mandatory state social insurance (clause 5, clause 2 of Criteria No. 76);
2. the amount of the accrued average salary of insured persons - employees for the last calendar month is not lower than the minimum wage in the country, multiplied by a coefficient of 2.5 (paragraph 3, clause 6, clause 2 of Criteria No. 76).

Therefore, to obtain the status of a critically important enterprise, a resident of Diya City had to submit the following basic package of documents to the Ministry of Digital Affairs:

1. application for recognition of the enterprise as critically important;
2. certificate of no debt (The form of the certificate is provided for in Appendix 1 to the Procedure. providing a certificate of absence of arrears on payments, control over the collection of which is entrusted to the regulatory authorities, approved by order of the Ministry of Finance from 03.09.2018 No.733);
3. certificate of the average salary of employees;
4. a copy of the decision on granting resident status to Diya City;
5. information about the company's submission of tax returns for the last tax period.

from November 2025, it has been added that an enterprise that has acquired the status of a resident of Diia City under a simplified procedure (startup) in accordance with Part Three of Article 5 of the Law of Ukraine dated July 15, 2021 No. 1667-IX «On Stimulating the Development of the Digital Economy in Ukraine» (hereinafter referred to as Law No. 1667) adds to the application:

1. supporting documents regarding their compliance with the requirements specified paragraph 1 of part two of Article 13 of Law No. 1667, as well as copies of transactions and primary documents certified by the head, confirming the receipt by the enterprise, based on the results of three full months following the month of acquiring the status of a resident of Diia City, of income from the sale of products (goods, works, services) and royalties (if such royalties are not included in the income from the sale of products), and/or grants, and/or investments - in the amount of not less than the equivalent of 20,000 (twenty thousand) euros at the official exchange rate of the hryvnia against the euro, established by the National Bank of Ukraine as of January 1 of the current calendar year;

or

1. supporting documents regarding his/her fulfillment of the requirements stipulated in Part Three of Article 13 of Law No. 1667.

The changes apply to enterprises that have acquired the status of a resident of Diya City in accordance with Part 3, Article 5 of Law No. 1667 under a simplified procedure, and not to all residents of Diya City.

additional documents:

1) for newly created residents of Diya City (at least three calendar months have passed since the month of acquiring the status):

1. initial compliance report (see. Clause 1, Part 2, Article 13 of Law No. 1667);
2. certified by the manager copies of transactions and primary documents confirming receipt of income over three full months in the amount of not less than the equivalent of 20,000 (twenty thousand) euros at the official exchange rate of the NBU as of January 1 of the current calendar year. Income from the sale of products (goods, works, services), royalties, grants, investments is taken into account;

2) for entities that acquired the status in the previous year:

1. an annual compliance report, accompanied by an independent opinion submitted by an audit entity based on the results of the verification of the statements of the resident of the City of Diya, set out in its annual compliance report (Part 3, Article 13 of Law No. 1667).

That is, documents on income, transactions, primary documents, and reports must confirm that the entity is indeed operating in the field of City Activities and is gradually fulfilling all mandatory criteria.

If we are talking about entities that have acquired the status of a resident of Diia City not through a simplified procedure, but in a general manner (i.e., they meet all mandatory requirements), then they can apply to the Ministry of Digital Affairs to obtain criticality on general grounds with a basic package of documents. 

Help in Diya.City

Therefore, the Diya City Residency provides new opportunities and tools for applying foreign experience and special tax conditions.

For detailed advice on structuring your company and the tax burden for Diya City Residents, contact AF “ZEVS”.

Our lawyers understand the importance of using the Diya.City service, so we consider ways to obtain residency, choose taxes, investment conditions, get a reservation, etc. During the consultation, we provide advice on registering with the Diya.City service, including drawing up documents, signing a signature, and creating an electronic account.

Contact the Audit Firm “ZEVS” now and we will help you sort out your taxes, regardless of whether you use an individual entrepreneur, an employment contract, or a contract.