A legislative package has been submitted to the Verkhovna Rada proposing the introduction of Defence City — a special tax and regulatory regime designed to accelerate support for manufacturers operating in the security and defence sector.

Key eligibility criteria for residents:
▪ At least 90% of revenue must be generated from defence-related activities;
▪ Inclusion in a special list maintained by the Ministry of Defence;
▪ No outstanding debts, sanctions, or reputational risks;
▪ Location in regions designated by the Cabinet of Ministers.

Incentives available through 2036:
▪ 0% corporate income tax (subject to reinvestment of profits);
▪ Exemption from land tax, real estate tax, and environmental tax;
▪ Customs and currency benefits;
▪ Special procedural guarantees (including data protection for residents).

Restrictions:
▪ Diia.City residents are not eligible for simultaneous residency in Defence City;
▪ Dual-use enterprises, military-tech startups, or large industrial players may not meet the eligibility criteria;
▪ The list of qualifying enterprises is closed and not publicly disclosed.

Additional considerations:
▪ Relocation to the designated regions must occur by 2028;
▪ The Ministry of Defence determines the list of residents without an open application process;
▪ Tax data and financial statements of residents are exempt from publication in public registers.