Investing in business in Ukraine

Investing in business in Ukraine offers a promising opportunity for international investors due to the diversity of industries and economic growth prospects. The country possesses rich natural resources, including fertile lands, energy resources, and a strategically important location at the crossroads of Europe.

One key factor contributing to Ukraine’s attractiveness to investors is its commitment to reforms and economic modernization. The government actively works on improving the investment climate, streamlining business processes, and enhancing legal protection for investors.

Sectors drawing attention from investors include agribusiness, information technology, energy, heavy industry, electronics manufacturing, furniture industry, creative industries, mining, infrastructure, and the automotive industry. The agricultural sector holds a significant position due to extensive agricultural lands, while the IT industry demonstrates dynamic growth, attracting those seeking innovative opportunities.

The government has developed numerous business support programs and incentives for investors who are interested in investing in business in Ukraine.

Support programs and incentives

  1. Support for significant investment projects:
    • Basic requirements: the project’s amount should be at least 12 million euros and create a minimum of 10 jobs.
    • State guarantees legislative stability for 15 years, providing investors confidence in a stable legal environment.
    • State support for projects up to 30% of significant investment volume.
  2. Industrial parks:
    • Corporate income tax exemption for 10 years, provided the freed amount is reinvested in the company’s development within the industrial park.
    • Exemption from customs duties and VAT for new equipment.
    • Provision of funds on a non-repayable basis for the arrangement and construction of related infrastructure.
  3. Special legal regime for IT companies (Diia.City):
    • 0% CIT and 9% corporate tax on withdrawn capital instead of an 18% income tax.
    • 0% tax on dividends for individuals, payable no more than once every 2 years.
    • Tax deduction for the amount spent on acquiring a stake in a Ukrainian startup from the total taxable income.
    • Instead of standard employment contracts regulated by the Labor Code, Diia.City residents can enter into Gig Contracts with employees, including provisions not covered by the Labor Code (confidentiality obligations, non-competition clauses, payment in foreign currency).
  5. Agriculture and agro-processing industry:
    • Budgetary subsidy for the presence of bee colonies.
    • Partial reimbursement (up to 80% excluding VAT) of the cost of purchased breeding animals for further reproduction.
    • Partial reimbursement of the cost of construction and/or reconstruction of livestock farms and complexes, fish farms, milking parlors, and agricultural product processing enterprises.
    • Budgetary non-repayable subsidies for maintaining and increasing livestock.
  6. “Green” energy:
    • Establishment of a “green” tariff for electricity generated from alternative sources.
    • Exemption from VAT and customs duties on operations related to importing equipment into Ukraine for use in the production of green energy if such equipment (with similar characteristics) is unavailable from a Ukrainian manufacturer.
  7. Production of eco-transport and components:
    • Temporary income tax exemption for enterprises (until 2036) exclusively engaged in economic activities related to the production and sale of electric motors, lithium-ion (lithium-polymer) batteries, their charging devices, electric transport, gas or bio-gas-powered transport, tram and metro cars.
    • Temporary VAT exemption (until 2026) for the import and sale of electric transport and gas or bio-gas-powered transport on the territory of Ukraine.
    • Temporary exemption from VAT and customs duties (until 2031) for the import of goods by legal entities engaged in economic activities or planning to create/upgrade their production for exclusive industrial production of electric vehicles, gas or bio-gas-powered transport, tram, and metro cars.

How can we assist you?

  • Legal analysis of the investment project and development of investment strategies;
  • Legal audit of partners, land plots, and real estate;
  • Preparation of investment agreements;
  • Preparation of founding documents and corporate contracts;
  • Identification of potential risks and proposing ways to minimize them;
  • Tax structuring of the investment project;
  • Attraction of state benefits and incentives for your investment project;
  • Assistance in communication with partners and government authorities.

This list of programs and incentives is not exhaustive. State grants for supporting horticulture, greenhouse crop cultivation, and capacity building are also provided. Programs supporting IT startups and IT specialists are under development.

In conclusion, positive changes in investment policy, a commitment to transparency, and the adoption of international standards make Ukraine an attractive destination for diverse investments. However, potential investors should always conduct thorough risk analysis and ensure proper legal and financial support for successful investing in business in Ukraine. With the latter, you can rely on our assistance. Leave your contacts in the form on the website or reach out to us through any convenient means.