As part of the national priorities “Azerbaijan 2030” and the “2022–2026 Socio-Economic Development Strategy,” Azerbaijan actively supports the development of the IT sector. Significant tax and social benefits have been introduced to attract investment, stimulate the digital economy, and create a competitive IT business environment. If you want to open or grow an IT company with tax benefits in Azerbaijan, the new conditions offer advantageous opportunities.
Key Benefits for Technopark Residents
On January 1, 2023, significant changes came into force in Azerbaijan, creating unique conditions for IT companies. By obtaining technopark resident status, you can take advantage of the following benefits for your IT sector business:
- Complete Tax Exemption for IT Companies
- Profit, property, land, and dividend taxes — 10-year tax holidays for IT residents of Azerbaijan’s technoparks.
- VAT on the import of IT equipment — exempt for 10 years.
- Benefits apply to the activities of residents both inside and outside the technoparks.
- Preferential Taxation on Employee Income in IT Companies
- Income of IT company employees up to 8,000 AZN per month is tax-exempt. A 5% tax rate applies to income above 8,000 AZN, which will last until 2033. These tax incentives create excellent conditions for attracting and retaining talented IT professionals.
- Exemption from Social Payments for Foreign Specialists in the IT Sector
- Technopark residents and their contractors are exempt from social payments for foreign specialists for 10 years. This allows the attraction of top international talent without extra costs, strengthening the competitiveness of IT companies in Azerbaijan.
- Flexibility in Social Contributions for IT Company Employees
- Starting in 2023, IT company employees can choose a suitable scheme for social contributions: either a fixed amount or a percentage of real income, making working conditions in technoparks even more attractive.
Why Choose Technopark Resident Status in Azerbaijan?
Becoming a technopark resident not only provides access to tax benefits but also enhances your company’s reputation, making it more attractive to clients and investors. This is an excellent opportunity to develop an IT business in Azerbaijan, optimizing tax costs and business management.
How to Become a Technopark Resident?
To obtain technopark resident status and take advantage of support for IT businesses, you must meet the following criteria:
- Registration in the state register (for legal entities) or tax registration (for individuals).
- No outstanding tax or mandatory payments.
- At least 1-year experience in systems integration or software development and the availability of completed projects.
- A team of qualified IT specialists.
Note: If your company is new to the market, you can still obtain technopark resident status by listing your parent company with over a year of experience as a founder. This will allow you to immediately access all tax benefits essential for the successful growth of your business in Azerbaijan.
Start Developing Your IT Business with Tax Benefits Today!
We are ready to assist you at every stage of registration and obtaining technopark resident status so that you can benefit from all the tax incentives for IT companies in Azerbaijan. Contact us to find out how we can support your business.
