{"id":786352,"date":"2025-09-15T14:19:10","date_gmt":"2025-09-15T11:19:10","guid":{"rendered":""},"modified":"2025-09-15T14:22:08","modified_gmt":"2025-09-15T11:22:08","slug":"hto-zh-naspravdi-rezydent-diya-siti","status":"publish","type":"post","link":"https:\/\/new.eba.com.ua\/en\/hto-zh-naspravdi-rezydent-diya-siti\/","title":{"rendered":"What Exactly is a Diia City Resident?"},"content":{"rendered":"\t
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Yuliia Sydorchuk<\/h4>\n\t\t\t\n\t\t\t\t\t\t\tSenior Legal Advisor, Accountor Ukraine<\/span>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n

Diia City is a special legal regime introduced by law for technology businesses in Ukraine. Its purpose is to establish clear rules for the IT industry, ensure competitive taxation, and provide modern formats of cooperation with professionals, so that companies can grow in Ukraine rather than be forced to move their operations abroad.<\/p>\n

Importantly, the company\u2019s legal form does not change: you remain an LLC or JSC, but acquire the Diia City legal status and gain access to its tools. The legal basis of the regime is established by the Law of Ukraine \u201cOn Stimulating the Development of the Digital Economy in Ukraine\u201d (the Law<\/em>), while taxation rules are codified in the Tax Code of Ukraine.<\/p>\n

Diia City is intended for companies that create digital products, provide IT services, conduct research and development of new technologies, operate in EdTech, cybersecurity, gaming, and other qualified activities defined by the Law.<\/p>\n

After acquiring the status of a Diia City resident, among other things, the company must comply with three fundamental requirements:<\/p>\n

    \n
  • derive at least 90% of its income from qualified types of activities,<\/li>\n
  • maintain an average number of employees and\/or gig specialists of no fewer than nine,<\/li>\n
  • and ensure that their average monthly remuneration is not less than the equivalent of EUR 1,200.<\/li>\n<\/ul>\n

    These requirements are critical, as the sector demands a transparent model of operations and does not tolerate mere formal compliance.<\/p>\n

    In its relations with professionals, a Diia City resident may use both traditional labor contracts and gig contracts. The gig contract has become one of the most discussed innovations. It is neither a classic employment agreement nor a standard civil law contract. Instead, it is a cooperation format provided by the Law, allowing residents to engage specialists flexibly. At the same time, it reduces the grounds for accusations of hidden employment.<\/p>\n

    A key feature of the regime is the reduced Personal Income Tax (PIT) of 5% on salaries and remuneration paid to gig specialists. The Unified Social Contribution (USC) is paid at a fixed rate of 22% of the minimum wage, regardless of the actual remuneration amount. The military levy applies under the general rules for individuals and, starting from 2025, amounts to 5%. Altogether, this lowers the payroll tax burden, creating tangible savings for companies, ensuring legal payments, and improving cash flow management.<\/p>\n

    Acquiring Diia City resident status provides not only tax benefits but also increased requirements for transparency and risk management. The Law obliges residents to file reports, maintain zero tax arrears, comply with activity and remuneration requirements, and properly document the transfer of intellectual property rights. This helps avoid the risks of reclassification of relations and allows for detailed regulation of relations between the employer and the specialist.<\/p>\n

    Therefore, for IT companies with a transparent business model, adequate remuneration levels, and a scalable structure, Diia City offers both financial and organizational advantages. These benefits manifest through reduced tax burdens as well as minimized legal risks in the areas of employment relations and intellectual property. However, if a company\u2019s revenue mix includes non-qualified activities, salaries fall below the \u20ac1,200 threshold, or it cannot maintain the minimum required number of specialists, it is necessary to carefully assess the consequences. The Law allows temporary deviations, but significant violations will trigger taxation under the general rules, thereby negating the benefits of the regime.<\/p>\n

    As of today, Diia City has established itself as a practical tool for the development of tech businesses in Ukraine. Companies should decide on acquiring this status only after financial modeling and legal analysis of their processes, since for some it may become an effective way to optimize operations and implement transparent business standards, while for others it may prove too demanding. One thing is clear: if your company meets the criteria and seeks to operate transparently, then in 2025, Diia City residency is not an exotic choice – it is the modern standard.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Diia City is a special legal regime introduced by law for technology businesses in Ukraine. Its purpose is to establish clear rules for the IT industry, ensure competitive taxation, and provide modern formats of cooperation with professionals, so that companies can grow in Ukraine rather than be forced to move their operations abroad. Importantly, the […]<\/p>\n","protected":false},"author":4489,"featured_media":671314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[15576,15575],"tags":[],"class_list":["post-786352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-articles-en","category-news-and-articles-from-companies-en","company-17168"],"_links":{"self":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/786352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/users\/4489"}],"replies":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/comments?post=786352"}],"version-history":[{"count":0,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/786352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media\/671314"}],"wp:attachment":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media?parent=786352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/categories?post=786352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/tags?post=786352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}