Defence City: New Opportunities for the Defence Industry

August 26, 2025

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Kinstellar

On 21 August 2025, two laws were adopted in Ukraine on the creation of Defence City*. Defence City is a special tax and legal regime that provides a number of benefits and easements for companies working in Ukraine’s defence industry.

The laws will enter into force one month after the date of their publication following their signing by the President of Ukraine and will be valid until 1 January 2036 or until Ukraine joins the EU (whichever comes first).

Kinstellar provides an overview of the new laws, including on benefits for Defence City residents, eligibility criteria, and relevant procedures.

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