Diia City
Diia City is a Ukrainian government-backed special legal and tax regime for IT companies, operated by the Ministry of Digital Transformation. It offers preferential taxation, English-law investment instruments, GIG contracts, and a 25-year stability guarantee to over 4,555 resident IT firms.
- Company typePrivate
- Founded2022
- HeadquartersKyiv, Ukraine
- Headcount11–50
- GTM typeB2B
- OfferingServices
What Diia City does
Diia City is a Ukrainian government-backed special legal and tax regime for IT companies, established under the Law of Ukraine 'On Stimulation of Development of Digital Economy in Ukraine' and administered by the Ministry of Digital Transformation of Ukraine. The regime went live on February 8, 2022, with first residents registered on February 15, 2022, and as of the source date counts 4,555 resident companies. It is positioned as a domestic counterpart to jurisdictions such as Estonia, Singapore, and Delaware, offering a 25-year state guarantee on its conditions.
The core offering combines a preferential tax framework (5% personal income tax, 22% single social contribution calculated from the minimum wage, 5% military levy, and a corporate choice between 9% on withdrawn capital or 18% on profit), the GIG-contract alternative employment model, English-law venture investment instruments (convertible loans, liquidation preferences, options/ESOP, warranties and indemnities, and liquidated damages), default IP ownership by the customer/employer, and an annual compliance reporting regime with auditor conclusions. Supporting technology is a digital government platform integrating the public Resident Registry, an online residency application portal (review within 10 working days, no licenses or permits required), a resident reporting service, and an independent Appeals Commission for status-loss disputes.
As a government initiative rather than a commercial entity, Diia City generates no direct revenue; it functions as a tax-collection framework where resident companies remit the preferential taxes to the Ukrainian state. Resident companies span IT services (EPAM Ukraine, SoftServe, Luxoft, Sigma Software, Intellias, NIX, Powercode, Genesis), product companies (MacPaw, Reface, Ajax Systems, Axdraft, Deus Robots, Rakuten Viber), gaming (Plarium), fintech (Monobank), retail and e-commerce (Rozetka), logistics (Nova Poshta), enterprise software (SAP Ukraine), and multinational local entities (Samsung Ukraine). Marketing and onboarding run through the city.diia.gov.ua portal and the Diia government platform, with direct digital application as the sole go-to-market channel for residents.
Diia City firmographics
Firmographics- Name
- Diia City
- Legal name
- Diia City (Дія.City) - Government Digital Initiative by Ministry of Digital Transformation of Ukraine
- Website
- https://city.diia.gov.ua
- Company type
- Private
- Founded year
- 2022
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Diia City is a Ukrainian government-backed special legal and tax regime for IT companies, operated by the Ministry of Digital Transformation. It offers preferential taxation, English-law investment instruments, GIG contracts, and a 25-year stability guarantee to over 4,555 resident IT firms.
- Ownership category
- akta.pro rank
Where Diia City is headquartered
LocationHeadquarters
- HQ city
- Kyiv
- HQ country
- Ukraine
- HQ region
- Europe
Offices1 record
Markets served
Diia City business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure
Revenue model
- Tax Contributions from Residents: Diia City generates no direct revenue. Instead, it facilitates collection of preferential taxes from resident IT companies: 5% PIT, 9% on withdrawn capital (or 18% on profits), and reduced social contributions. The regime aims to increase IT sector contribution to Ukraine's GDP.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | Standard Resident Tax Package - Preferential rates for qualified IT companies |
Go-to-market motion1 record
Distribution channels1 record
Marketing channels3 records
Diia City product offering
Product offeringCore offering
Diia City is a government-administered special legal and tax regime for IT companies registered under Ukrainian law. It offers preferential tax rates (5% PIT, 9% on withdrawn capital or 18% on profits), a GIG alternative employment contract model, English-law venture investment instruments, and IP protection guarantees — all fixed by the Ukrainian state for 25 years. Eligible companies apply online via the Diia digital platform, are reviewed within 10 business days, and gain access to the regime's resident status, public registry listing, and compliance reporting services.
Product overview
Diia City is a unified digital government initiative providing a special legal and tax framework for IT companies in Ukraine. The platform combines a regulatory regime with digital services, including: the core Tax Framework offering favorable tax rates (5% PIT, 9% on drawn capital/18% on profit), the GIG Contract hiring model, Venture Investment Tools based on English law, and IP Protection guarantees. Supporting services include the Online Registration Service for new residents, the Resident Reporting Service for compliance, the Appeals Commission for dispute resolution, and the public Diia City Resident Registry. All conditions are guaranteed for 25 years by the Ukrainian government.
Differentiator
Problem solved
Functional benefit
Products and services
- Diia City Tax Framework A special legal and tax regime providing favorable conditions for IT companies in Ukraine, including reduced tax rates (5% PIT, 9% on withdrawn capital or 18% on profits), alternative hiring models, and 25-year stability guarantees. For Ukrainian IT companies registered under Ukrainian law.
- GIG Contract Model An alternative hiring format available exclusively to Diia City residents, combining features of standard employment and freelancer cooperation (FOP) with moderate tax rates, basic social guarantees, and simplified administration. For Diia City resident companies and their contractors.
- Venture Investment Tools English-law investment instruments embedded in Ukrainian legislation, including convertible loans, liquidation preferences, stock options and ESOP, warranties and indemnities, and liquidated damages, to facilitate access to international venture financing. For Ukrainian IT companies seeking foreign investment.
- IP Protection Framework Intellectual property protection guarantees ensuring that property rights to intellectual property objects belong to the customer (employer) by default, with parties able to negotiate alternative terms. For Diia City resident companies and their contracting parties.
- Diia City Resident Registry Official public registry of Diia City residents, containing company names, registration codes, residency dates, startup status, income compliance information, and links to official decisions. Publicly accessible.
- Online Registration Service Digital application service for obtaining Diia City resident status. Online submission with no licenses required, reviewed within 10 business days. For IT companies registered under Ukrainian law.
- Resident Reporting Service Compliance reporting portal for Diia City residents to submit compliance reports and independent conclusions as required by regulations. For registered Diia City resident companies.
- Appeals Commission Independent appellate body for reviewing complaints regarding decisions on loss of Diia City resident status, ensuring due process and resident rights protection. For Diia City residents.
Companies that use Diia City
Customer profileNamed customers19 records
Segments1 record
Ideal customer profiles1 record
Diia City technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature3 records
Diia City partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- Ministry of Digital Transformation of UkrainecoreThe Ministry of Digital Transformation of Ukraine is the governing body that administers Diia City. It oversees the registry, sets regulations, and manages the overall program including appeals and compliance monitoring.
Scale indicators2 records
Recent moves5 records
Expansion highlights4 records
Diia City competitors and assessment
Company assessmentDirect peers
- Estonia e-Residency: Government-issued digital residency program from Estonia that provides cross-border companies with EU-accessible identity, company formation, and banking. Directly comparable to Diia City as a state-administered digital regime targeting international tech entrepreneurs, and explicitly cited by Diia City as a model jurisdiction.
- Belarus Hi-Tech Park: Special economic zone in Belarus offering preferential tax treatment, simplified employment, and venture-friendly instruments to resident IT companies. Closest direct comparator to Diia City in the post-Soviet regulatory environment, targeting the same regional IT talent pool with similar tax-and-legal incentive structure.
- Uzbekistan IT Park (IT-Park Uzbekistan): Uzbekistan's tech-focused special economic zone offering reduced income and social taxes, simplified employment, and English-friendly corporate tools for IT residents. Direct regional peer to Diia City in the post-Soviet / CIS regulatory environment, competing for the same cross-border IT talent pool with a similar tax-and-legal design.
- Moldova IT Park: Moldova's dedicated IT park offering a reduced corporate income tax rate, single social contribution, and English-friendly corporate environment for IT residents. Direct regional peer competing for the same Eastern European tech talent and FDI that Diia City targets, with similar sector-qualified activity lists.
- Singapore Economic Development Board (Tech Incentives): Singapore government agency administering tax incentives, grants, and regulatory frameworks to attract tech and R&D activity. Explicitly cited by Diia City as a model jurisdiction, and competes for the same cross-border tech companies seeking preferential tax and legal regimes.
- Dubai Internet City / DIFC: UAE free-zone ecosystem providing 100% foreign ownership, zero corporate tax (within thresholds), and English-law contracting for tech and financial services firms. Competes with Diia City for international tech companies seeking tax-efficient regional headquarters and is among the jurisdictions Diia City explicitly benchmarks against.
- Delaware Division of Corporations: U.S. state-level corporate framework widely used by tech startups for its favorable corporate law, Court of Chancery, and English-derived legal conventions. Cited by Diia City as an explicit inspiration for embedding English-law investment instruments into the Ukrainian regime.
Others
- Israel Innovation Authority: Israeli government body administering R&D grants, tax incentives, and regulatory frameworks that built Israel's tech sector. Comparable as a state-administered innovation incentive regime, though Israel operates from a much more mature ecosystem and broader mandate than Diia City's IT-specific scope.
Regional players
- Portugal StartUP Portugal / Tech Visa: Portuguese government initiative offering tech-focused visas, tax incentives (including NHR regime), and incubators to attract international entrepreneurs and IT firms. Competes for European tech residency flows but operates in a different geography and EU-wide context versus Diia City's Ukrainian-only scope.
- Cyprus Tech & Investment Incentives: Cyprus government framework offering low corporate tax rates, IP box regimes, and English-law investment instruments to attract tech, fintech, and holding structures. Competes for the same Eastern European and CIS-origin tech companies but operates from within the EU.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks5 records
Key highlights6 records
Customer concentration
Diia City social profiles
Digital presenceDiia City financial estimates
Financial estimateRevenue estimate
Valuation estimate
Diia City leadership team
Management profileNumber of profiles
Diia City funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Diia City M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Diia City
What does Diia City do?
Diia City is a government-administered special legal and tax regime for IT companies registered under Ukrainian law. It offers preferential tax rates (5% PIT, 9% on withdrawn capital or 18% on profits), a GIG alternative employment contract model, English-law venture investment instruments, and IP protection guarantees — all fixed by the Ukrainian state for 25 years. Eligible companies apply online via the Diia digital platform, are reviewed within 10 business days, and gain access to the regime's resident status, public registry listing, and compliance reporting services.
Is Diia City a public or private company?
Diia City is a private company. It is classified as state government owned and is currently operating.
When was Diia City founded?
Diia City was founded in 2022. It employs 11 to 50 people.
Where is Diia City based?
Diia City is headquartered in Kyiv, Ukraine, in the Europe region.
How does Diia City make money?
One revenue line is on record: tax Contributions from Residents.
Who are Diia City's main competitors?
Direct peers on record are Estonia e-Residency, Belarus Hi-Tech Park, Uzbekistan IT Park (IT-Park Uzbekistan), Moldova IT Park, Singapore Economic Development Board (Tech Incentives), Dubai Internet City / DIFC and Delaware Division of Corporations. Israel Innovation Authority is listed as an others. Regional players are Portugal StartUP Portugal / Tech Visa and Cyprus Tech & Investment Incentives.
Does Diia City have an API?
No public API is recorded for Diia City.