Industrial parks in Ukraine are a powerful tool for stimulating economic growth and attracting investment. In recent years, the government has actively supported the creation and development of such parks by providing various incentives and regulating their activities at the legislative level. This creates favourable conditions for investors who are considering locating production facilities and logistics hubs in Ukraine.
Legislative framework
The main regulatory act governing the activities of industrial parks in Ukraine is the Law of Ukraine ‘On Industrial Parks’, which defines the legal, economic and organisational basis for their creation and functioning. This law is aimed at stimulating the attraction of investments in industrial production and the development of infrastructure necessary for the functioning of such parks.
According to the law, industrial parks are created in order to:
- Stimulating economic development of a certain region;
- Attracting domestic and foreign investments;
- Development of modern production and logistics infrastructure;
- Creation of new jobs.
State support and incentives
Ukrainian legislation provides a number of financial incentives for initiators, management companies and residents of industrial parks.
Industrial parks in Ukraine provide their participants with significant tax incentives that make them attractive for business. Residents of such parks can take advantage of exemption from income tax and land tax, which allows them to significantly reduce the tax burden and use the freed up funds for production development. In addition, exemptions apply to VAT on imported equipment and property tax, which further stimulates modernisation and technical equipment of enterprises.
Also, one of the key mechanisms is the provision of non-refundable funds for the development of parks and the construction of necessary infrastructure. This is regulated by a number of Resolutions of the Cabinet of Ministers of Ukraine, which approve the procedure for providing funds on a non-refundable basis.
According to this procedure, initiators of industrial parks and their residents can receive state funding for the implementation of measures to develop the park’s territory and construction of engineering infrastructure such as motorways, communication lines, power and water supply systems.
In addition, there is a possibility to compensate interest rates on loans taken to develop the park and carry out economic activities on its territory.
These tax and financial incentives create favourable conditions for domestic and foreign investors, accelerating the return on investment and increasing the profitability of projects. State support in the form of tax incentives and the provision of non-refundable funds makes industrial parks in Ukraine a favourable platform for the location of production and logistics facilities.
Legal issues
In order to establish and operate an industrial park, a number of legal procedures must be followed, including registering the park in a special register, obtaining construction permits and connection to utility networks. The legislation also stipulates requirements for transparency in the use of public funds, which ensures investor confidence in such projects.
All these measures are aimed at reducing risks for investors and simplifying the process of launching new projects. State support in the form of subsidies and compensation makes investing in industrial parks an attractive option for companies looking for opportunities to expand their operations in Europe.
Advantages of investing in industrial parks in Ukraine
Investing in industrial parks in Ukraine offers a number of key advantages:
- Access to state subsidies and compensations;
- Developed infrastructure and favourable geographical location, especially on the border with the EU;
- Support from local authorities;
- Opportunity to participate in large-scale infrastructure projects.
Thus, the creation of an industrial park in Ukraine is an attractive opportunity for long-term investments that will bring both economic benefits and social benefits in the form of new jobs and improved infrastructure.
Your investment in an industrial park is a contribution to the future, secured by state support and legal protection.
Useful links to legislative documents of Ukraine: