The Government of Azerbaijan with the collaboration of the Innovation and Digital Development Agency (IDDA) has recently started a programme that seeks to make Azerbaijan the premiere choice for the setting up of tech enterprises by investors from other countries. The concept, based on the Central Technopark, has introduced a package of tax preferences and incentives for reorganization to redefine the conditions for the expansion of representative IT enterprises in the Eurasian region.
Key features include ‘tax haven’ status of Technopark residents for the next 10 years, no payments of personal income tax on monthly salaries not exceeding $4700; no corporate tax, property tax, land tax, and tax on dividends. Eligibility requirements are minimal, demanding only one year of operational history and more than 10 full-time employees (2 of which are IT specialists) or revenue of 200,000 Manat.
The programme also covers clear migration procedures, work permit exemption for ICT specialists and managers and full support in relocation including obtaining residency permits, sourcing of office space, and accommodation. This package is aimed at attracting the foreign technology companies and market Azerbaijan as a favorable technology hub in the region.
The Relocation programme targets companies in system integration and software design and development, aligning with Azerbaijan’s Vision 2030 focus on digitalization, tech entrepreneurship, and innovation ecosystem development. The initiative is part of a broader focus of Azerbaijan on IT, with over 400 million dollars annually spent on it in the governmental center alone.
IDDA plays a very proactive role in the digitalization of the country through several projects and IT agendas like “mygov” platform, the Paperless government project, and scholarship project Technest. These initiatives significantly enhance the country’s IT potential and create even more opportunities for companies deciding to relocate.
Azerbaijan offers a unique environment for tech companies looking to expand, with its multilingual young population, melting pot of different cultures, and extensive infrastructure making it an ideal location for growth and innovation in the Eurasian market.
