Investment Promotion Document in Azerbaijan: Benefits and Requirements

The Investment Promotion Document (İnvestisiya təşviqi sənədi) is one of the strongest tax tools available to new manufacturing and agricultural projects in Azerbaijan. In 2026, the list of directions it covers was expanded to 17.

Short answer: The Investment Promotion Document is issued by the Ministry of Economy for a specific investment project in one of 17 strategic directions, and documents are being issued until 1 January 2029. For 7 years it gives a 50% relief on profit or income tax, exemption from land and property tax, and exemption from customs duty and VAT on imported machinery and equipment.

What benefits does the document give?

Benefit Duration
50% relief on profit tax (companies) or income tax (individual entrepreneurs) 7 years from the date of issue
Exemption from land tax and property tax 7 years from the date of issue
Exemption from customs duty and VAT on imported machinery, technological equipment and installations 7 years from the date of issue

The mechanism is widely used: according to the SME Development Agency (KOBİA), as of 30 September 2026, 633 investment promotion documents had been issued to 528 businesses. Since 1 October 2026, KOBİA’s functions have been carried out by the Agency for Small and Medium Business Development, Investment and Export Promotion under the Ministry of Economy, set up on the basis of KOBİA and AZPROMO.

Which projects can get the document?

A Presidential Decree signed in June 2026 raised the number of strategic directions to 17. Documents are issued for them until 1 January 2029:

  • production based on local raw materials — metals and aluminium, oil, gas and chemical feedstock, construction materials, cotton;
  • manufacturing of renewable energy equipment, and renewable power generation projects;
  • waste management and recycling, seawater desalination, creation of special industrial zones;
  • production at privatised non-oil enterprises, and local production of goods not previously made in the country;
  • pharmaceuticals, repair and spare parts for railway rolling stock, military-purpose products;
  • agroparks, production of fertilisers, plant protection products, seeds and animal feed, sorting and packaging of farm produce;
  • fourth-generation greenhouse complexes with automated climate control — at least 3 hectares;
  • manufacturing of farm machinery and storage equipment, and ICT industrial products.

Who issues the document, and what are the project requirements?

The document is issued by the Ministry of Economy; according to the Agency (formerly KOBİA), applications in the strategic directions are also accepted at SME Houses (KOB evləri) in Baku, Ganja, Khachmaz, Yevlakh and Shusha. Requirements on project scale depend on the direction: greenhouse complexes, for example, must cover at least 3 hectares. Specific conditions for your direction, including the investment volume, should be checked against the acts in force on the date you apply.

What role does the business plan play?

The document isn’t issued to a company in general — it’s issued for a specific project. So the core of the application is the description of the investment project, which is essentially a business plan: fit with the strategic direction, size and structure of the investment, the list of machinery and equipment to be imported, the implementation timeline, jobs and the financial model. A well-built plan also pays off at the bank: on loans guaranteed by İKZF and taken by the end of 2026, document holders get a higher interest subsidy — 10 percentage points instead of 8.

— SME: The equipment list in the business plan is not a formality: the customs and VAT exemptions apply to the project’s machinery and equipment. We reconcile the list with supplier specifications before the application goes in, so there are no discrepancies at customs.

Frequently asked questions

How long do the benefits last?
7 years from the date the document is issued.

Until when are documents being issued?
In the strategic directions — until 1 January 2029.

Does the document exempt you from all taxes?
No. Profit or income tax relief is 50%; land tax, property tax, and customs duty and VAT on imported machinery and equipment are fully exempt. Other taxes are paid as usual.

Does a greenhouse project qualify?
Yes, if it’s a fourth-generation greenhouse complex with automated climate control covering at least 3 hectares.

This article is for general information and does not replace individual advice. The investment promotion rules can change — confirm the current requirements or talk to SME.

Planning a project in a strategic direction? SME prepares the business plan and supports your Investment Promotion Document application.

Full overview: Business Plans for Azerbaijan: What Investors and Banks Expect

Sources

SME Development Agency (KOBİA) — smb.gov.az, 30.09.2026: “The investment promotion mechanism now covers 17 strategic directions” (benefits, duration, directions, statistics). Presidential Decree of 19.06.2026 amending the decrees on the investment promotion mechanism — president.az. Mortgage and Credit Guarantee Fund — mcgf.gov.az, Rules on interest subsidies; Presidential Decree of 06.02.2025 (subsidy on loans taken through 2026) — president.az. Presidential Decrees No. 607 of 24.02.2026 and of 20.08.2026 — transfer of KOBİA’s functions to the new Agency from 01.10.2026 (president.az). Checked 05.10.2026.
Last reviewed: October 2026.

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Ali Abdullayev

Head of Sales Department

Ali Abdullayev is a specialist with strong expertise in sales, logistics, and business management. He graduated from the Azerbaijan State Technical University and started his career in hospitality (2012–2020), progressing to lead roles in a foreign transport company, where he oversaw accounting and logistics for over five years. He also served as Head of Sales in an automotive firm. Today, he leads the sales department, drives the company’s external sales direction, and builds long-term relationships with international partners.

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Rimma Zeynalova

Chief legal lawyer

Rimma holds a master’s degree in law from the Moscow State Industrial University, which she obtained in 2017. With over 7 years of experience in the legal field, Rimma specializes in corporate law, commercial law, dispute resolution, and legal consultations in tax and labor law. She has extensive experience in client work, negotiations, and representing company interests in court.

Subhan Namazov

Founder and director of the company

Subhan has many years of experience in business management and development. He holds a master’s degree in management from Western University of Azerbaijan.
His specialization includes corporate law, where he helps companies establish a legal foundation for effective management and growth. In tax law, Subhan ensures the optimization of tax strategies and compliance with legislation, facilitating successful business financial planning. In financial and banking law, he provides consulting on legal aspects of financing and banking operations, which strengthens the financial stability of the company’s clients and partners.
With his expert support in these areas, Subhan successfully helps companies achieve their goals by solving complex legal and managerial tasks.

Panfyorova Sofya

Accountant - specialist

She obtained a bachelor’s degree in world economics from the Azerbaijan State University of Economics. Sofya has experience in accounting and specializes in maintaining records, preparing tax reports, analyzing financial data, and drafting budgets. Her professional practice includes client interaction, financial audits, and ensuring compliance with tax laws.

Yelena Ismailova

Lead human resources accountant

She obtained a bachelor’s degree in Finance and Credit from the Azerbaijan State University of Economics in 2006.
Yelena has more than 15 years of experience in accounting and HR administration. She is skilled in payroll accounting, HR documentation preparation, personnel calculations, and ensuring compliance with labor laws. Her specialization includes drafting employment contracts, calculating leave and benefits, maintaining time records, and liaising with regulatory authorities.

Ismail Ismailov

Client manager

Ismail has experience in client management and support. He obtained a bachelor’s degree from the Academy of Public Administration under the President of the Republic of Azerbaijan.
Ismail specializes in identifying and attracting new clients, building long-term relationships with corporate partners, and developing and implementing strategies to improve client experience. His skills include negotiations, contract conclusion, and market data analysis to enhance customer service quality.

Gulustan Isaeva

Junior lawyer

Gulustan graduated with a bachelor’s degree in law from Baku State University in 2024.
Gulustan specializes in preparing legal documents, conducting legal research, organizing meetings, and supporting transactions. She is skilled in business correspondence, client consultations, and assisting the chief legal officer in corporate and commercial law matters.

Nazrin Hajiyeva

Director’s assistant

Nazrin obtained a bachelor’s degree in Accounting and Auditing from the Azerbaijan State University of Economics in 2018.
Nazrin has over 5 years of experience in administrative support. She specializes in coordinating work schedules, organizing meetings and events, handling business correspondence, and preparing reports and documentation. Nazrin possesses excellent project management and interpersonal communication skills, which help her effectively collaborate with employees and clients.

Gunel Bayramzade

Business Partner and Executive Director.

Gunel Bayramzade holds a Bachelor’s degree in English from the Azerbaijan University of Languages. With extensive leadership experience, Gunel Bayramzade serves as the Executive Director and Business Partner at SME. Known for her strategic vision and commitment to improving operational efficiency, Gunel Bayramzade has played a key role in shaping the company’s direction and driving its growth. Her focus on fostering innovation and creating a dynamic work environment has helped SME achieve significant success. Through her keen insight into identifying opportunities and dedication to talent development, Gunel Bayramzade ensures that each team member contributes meaningfully to the company’s success. She strives to maintain a forward-thinking approach while achieving both short-term and long-term goals.

Jafar Alizade

Chief financial director

Jafar received a master’s degree in auditing from the Azerbaijan State University of Economics in 2009. Jafar Alizade has over 15 years of experience in financial management and tax matters. He specializes in budget management, financial analysis, investment planning, and tax expense optimization. Jafar has extensive experience in developing and implementing financial strategies to improve company profitability and sustainable growth, as well as in tax accounting and planning. He is responsible for preparing tax reports, optimizing tax obligations, and interacting with tax authorities. Jafar possesses in-depth knowledge of Azerbaijani law and international tax agreements, allowing him to successfully advise clients on taxation matters.

Ilgar Namazov

Honorary Founder

Ilgar Namazov is one of Azerbaijan’s leading experts in business consulting and business planning, Doctor of Economics, and a lawyer. He has developed over 3,600 business plans and helped attract more than 8 billion manats in investments. He holds an international award and EBRD accreditation under the Small Business Support Programme.

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