Tax incentives for foreign investors in Ukraine in 2025: how to invest profitably?

Ukraine in 2025 offers a wide range of tax incentives for foreign investors. Find out what incentives are available and how to use them effectively

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In 2025, Ukraine continues to create a favorable environment for attracting foreign investment by offering a wide range of tax benefits and incentives. In the context of European integration and the need for economic recovery, the country focuses on transparency, stability and competitiveness of its tax regime. For potential investors, this means not only lower costs, but also increased security of investment.

Tax support for investment projects with significant investments: as it works in Ukraine

The key mechanism of state support is the Law of Ukraine “On State Support for Investment Projects with Significant Investments” No. 1116-IX. Under this law, an investor implementing a large investment project can count on the following benefits:

● Income tax exemption for up to 5 years;

● Exemption from import duties and VAT on the import of new equipment and components;

● Land taxation benefits - possible rent reduction or full exemption from land tax;

● The possibility to enter into a direct agreement with the state, which provides legal and procedural certainty.

To qualify for the incentives, the investment must exceed EUR 20 million, provide for the creation of at least 80 jobs, and be implemented within five years.

Industrial parks and priority development zones in Ukraine

Foreign investors investing within industrial parks or priority development zones receive additional support. They are entitled to:

● 10-year exemption from income tax;

● Benefits when importing equipment - exemption from VAT and customs duties;

● Compensation for the cost of connecting to the grid;

● Municipal tax rebates (depending on the region).

These conditions are particularly favorable in regions that have suffered from hostilities or are of strategic importance for economic recovery. Thus, the investor not only receives economic benefits but also contributes to regional development.

Double taxation treaties: protection and savings

Ukraine currently has double taxation treaties in force with 73 countries, which greatly simplifies financial planning and reduces fiscal risks for foreign investors. These agreements provide for:

● Reduced tax rates on dividends, royalties, and interest, typically down to 5-10%;

● Avoidance of double taxation of profits;

● The possibility to receive a tax credit for taxes already paid in the country of source of income.

The existence of such agreements increases predictability for foreign capital and strengthens confidence in the Ukrainian legal system.

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Diia City residency - a special regime for IT investors

Investors in the digital technology sector can take advantage of the Diia City legal regime, created specifically for the development of the IT ecosystem in Ukraine. For foreign companies, this means:

● Reduced tax burden - 5% tax on employee income instead of the traditional personal income tax + unified social contribution;

● Tax on withdrawn capital instead of the classical income tax - 9% rate;

● Flexible labor relations with employees and protection of intellectual property;

● Simple administration and clear regulatory environment.

“Diia City" is not only a fiscal benefit, but also an image signal of the Ukrainian market's openness to new technologies and innovative approaches.

New initiatives and relevant benefits for foreign investors in 2025

In 2025, a number of additional tax initiatives are expected to be introduced or extended to meet the challenges of today:

● Accelerated depreciation of equipment for new businesses - allows for faster write-offs;

● Moratorium on inspections and simplification of tax administration in the frontline regions - reducing the bureaucratic burden;

● Benefits for businesses involved in the restoration of critical infrastructure - recognizing their contribution through tax incentives.

These measures are designed to address the specific challenges of reconstruction and are of strategic importance for the post-war economic recovery.

At the same time, despite broad legislative support, the effective use of tax incentives requires an individualized approach and legal expertise. The nuances of applying for benefits, preparing documentation, and assessing tax risks all require the involvement of specialists.

👉 Visit Ukraine offers professional support from lawyers who will help you adapt your investment strategy to the requirements of Ukrainian legislation. Contact our specialists to get advice or full support in starting and running a business in Ukraine.

We remind you! Even under the current conditions, foreign investors choose Ukraine for business development and residence permit obtainment. Read our previous article to find out which areas are the most popular, how to formalize an investment correctly, and why legal support is critical at every stage.

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