Ukraine | The new law on investment support has been introduced


On December 17, 2020, the Verkhovna Rada of Ukraine adopted the draft law “On state support of investment projects with significant investments”, which is aimed at increasing Ukraine’s investment attractiveness for domestic and foreign investors (hereinafter – the “Law”).

The law, in particular:

  • provides for support of Ukrainian and foreign investors, with investment amounts exceeding € 20 million; investors must create at least 80 jobs with an average salary of 15% more than in the region where investments are expected;
  • provides a number of incentives for investors and consolidates the status of a government agency, which includes investment managers;
  • sets the amount of state support not more than 30% of investments in a project with a term of its implementation up to 5 years;
  • provides state support in the form of exemption from import duties for new equipment and components to it, which are imported for the implementation of the investment project;
  • provides the preemptive right to use state or communal land for the implementation of an investment project (roads, communication lines and utilities necessary for the project implementation should be built at the expense of the state and local budgets).

The following companies will not be affected by the Law if:

  • they have debts of mandatory payments (taxes and fees) in excess of 10 minimum wages;
  • they have not disclosed information about the ultimate beneficial owner;
  • more than 50% of their shares belong to offshore companies;
  • more than 10% of their shares belong to Russia;
  • they are registered in Russia;
  • they are on Ukraine’s sanctions list.


If you would like to have more information about the incentives and legal regime of investments in Ukrainian legislation, please do not hesitate to contact us. SCHNEIDER GROUP legal and tax experts in Ukraine will be ready to advise you on peculiarities of the current Ukrainian legislation in this regard.

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