The Azerbaijani government, with the backing of the Innovation and Digital Development Agency (IDDA), has begun a program to lure international tech companies to the country, with an emphasis on Indian and other industries. The project, centred on the country's Technopark, provides numerous tax breaks and relocation help with the goal of establishing Azerbaijan as a regional technology hub.
The scheme grants residents of Azerbaijan's Technopark a 10-year ‘tax haven’ status, which includes a 0 per cent personal income tax on monthly incomes up to USD 4,700, with a 5 per cent tax applied above this threshold. Companies in the Technopark are exempt from all corporation, property and land taxes, as well as dividend taxes. To be eligible for these advantages, enterprises must have at least one year of operational history, more than 10 full-time employees (two of whom must be IT professionals) or a revenue of 200,000 manats.
Along with tax breaks, the effort simplifies the migration process for tech workers and senior executives by waiving work permits and providing aid with residency permits, office space and lodging. These initiatives are meant to assist the relocation of technology enterprises and advance the government's goal of transforming Azerbaijan into a technological hub.
The initiative is part of Azerbaijan's Vision 2030 strategy, which focusses on digitalisation, technology entrepreneurship and the creation of an innovation ecosystem. As part of this larger initiative, the country invests more than USD 400 million per year in IT projects, such as the ‘mygov’ platform, which organises citizens' interactions with government bodies, and the ‘Paperless Government’ initiative, which enables electronic document exchange between government institutions.
IDDA is also involved in human capital development through projects like the Technest scholarship program and collaborations with foreign educational institutions. The goal is to strengthen Azerbaijan's IT skills and expand options for enterprises contemplating relocation.