Editor’s Note: Ukraine is making bold strides toward establishing itself as a global technology hub, even in the face of ongoing challenges. Spearheaded by the Ministry of Digital Transformation under the leadership of Deputy Prime Minister Mykhailo Fedorov, the country is leveraging innovative policies and digital solutions to drive foreign investment and economic growth. The launch of the uResidency program, which allows foreigners to start businesses remotely in Ukraine with attractive tax benefits, is a critical part of this strategy. Coupled with AI integration in government operations and the Diia City initiative, Ukraine is poised to become a competitive player in the global tech landscape. This article highlights these transformative initiatives, offering insights relevant to professionals in cybersecurity, information governance, and eDiscovery, as well as to those invested in emerging tech ecosystems.


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Industry News – Digital Residency Beat

Ukraine’s Strategic Initiatives in Technology and Foreign Investment

ComplexDiscovery Staff

Ukraine is taking significant steps to establish itself as a global technology hub. The Ministry of Digital Transformation, led by Deputy Prime Minister Mykhailo Fedorov, is at the forefront of these initiatives. At the Lviv IT Arena on September 27, Fedorov unveiled the uResidency program, which allows foreigners to start businesses in Ukraine remotely. This program is part of a broader strategy to attract foreign investments and business opportunities to foster economic growth amidst ongoing challenges. The uResidency scheme offers foreign entrepreneurs a 5% tax rate on profits and the ability to register as individual entrepreneurs without traveling to Ukraine. Additionally, it facilitates business operations through a user-friendly mobile application and website.

Mykhailo Fedorov emphasized the transformative potential of technology in rebuilding Ukraine’s economy, stating, ‘Thanks to technology, we can create products that can attract funds to Ukraine and grow the brand of an innovative country. One of these products is the uResidency.’ He highlighted that this initiative supports Ukraine’s ambitions to become an innovative hub. The program has been launched with the support of the European Union and the eGovernance Academy of Estonia, and the initial phase targets citizens of India, Pakistan, Thailand, and Slovenia.

In a parallel effort, the Ministry of Digital Transformation is also developing policies to integrate artificial intelligence (AI) into government operations. Deputy Prime Minister Fedorov articulated the strategic importance of this integration at the Conductors of Change forum hosted by Deloitte, asserting, ‘In every area the Ministry is working on, there are specific projects to be developed. But one area, which will now become fundamental and cross-sectoral, is AI.’ He stressed that Ukraine, which has rapidly climbed to the 5th place globally in digital governance rankings, aims to reach the top by leveraging AI and automation.

Ukraine’s efforts to attract foreign investment are not limited to the uResidency program. Western Ukraine, particularly the border regions such as Lviv, Volyn, Zakarpattia, and Chernivtsi, is emerging as a prime area for business and foreign investment. These regions benefit from their proximity to EU markets, advanced infrastructure, and a skilled workforce. Western Ukraine hosts numerous Special Economic Zones (SEZs) and tax incentives to attract investors. Led by initiatives such as the Diia.City tax regime, these regions are strategically positioned to thrive economically.

The Ministry of Digital Transformation’s efforts have already started yielding tangible results. Recently, the Ukrainian representative office of Viber, owned by the Japanese technology giant Rakuten, became a resident of Diia.City. Fedorov remarked, ‘The decision to join the tax regime for the IT sector in Ukraine of such a large company as Rakuten is another step towards its expansion. This step sends a strong signal to other companies that it is possible and necessary to develop in the country even during a war.’ This development underscores the Ministry’s commitment to fostering a robust digital ecosystem in Ukraine.

Another noteworthy initiative is the Diia mobile application, launched in 2020 under the ‘state in a smartphone’ concept. This app enables Ukrainians to access digital versions of various official documents and perform functions such as registering businesses or births. This platform demonstrates Ukraine’s innovative approach to integrating technology into everyday governance and is being emulated by other countries in Europe, Latin America, and Africa.

Simultaneously, other countries are launching initiatives to attract high-value tech startups. For instance, Türkiye has introduced a visa program granting three-year work permits to foreign entrepreneurs and professionals in high-value tech sectors. This initiative, spearheaded by the Industry and Technology Ministry in cooperation with the Labor and Social Security Ministry, aims to simplify bureaucratic hurdles and offer significant tax incentives to foster an entrepreneurial ecosystem in Türkiye. Industry and Technology Minister Mehmet Fatih Kacır commented, ‘The biggest beneficiaries of this program will undoubtedly be Turkish tech startups and our skilled workforce.’

Ukraine’s comprehensive strategy, encompassing initiatives such as uResidency, AI integration policies, and the Diia.City project, illustrates a robust commitment to creating an innovative economy. These efforts are poised to position Ukraine as a key player in the global technology landscape and attract substantial foreign investment.

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