BAKU, Azerbaijan - Azerbaijan’s parliament has reapproved a package of technology-sector incentives that would provide 20 years of zero income tax for eligible technology-park employees beginning in 2027.
The Milli Majlis passed the revised legislation in a single reading after President Ilham Aliyev returned the law adopted on July 14 for further work under Article 110 of the Constitution, Vesti Baku reported.
The updated package clarifies the objectives of state support and how the incentives would be applied. Its principal tax provisions are planned to take effect on Jan. 1, 2027, after the legislative process is completed.
Who Would Receive the 20-Year Exemption
Employees of technology-park residents would pay no income tax on employment earnings for 20 years. The benefit would include eligible employees of resident companies operating outside the physical boundaries of a technology park.
Foreign-source income earned by highly qualified migrants under employment contracts with nonresident employers located or registered outside Azerbaijan would also be exempt for 20 years.
Longer Startup and Investment Incentives
The package would extend the existing income- and profit-tax exemption for innovation activity by holders of startup certificates from three years to seven years.
Income from the sale of qualifying shares or ownership stakes in startups and technology-park residents would be fully exempt when project conditions are met, including a minimum three-year holding period.
Employees who have worked for a technology company for at least one year could also receive company shares free or at a discount without income tax for 10 years.
Simplified Visa for Digital Nomads
Related amendments to the Migration Code would create a simplified business visa for digital nomads - foreign nationals working remotely in digital technology, artificial intelligence, cybersecurity or innovation while earning income from sources outside Azerbaijan.
Applicants for the new visa would not need a petition from an inviting party or a document confirming the purpose of an invitation.
Presidential aide Shahmar Movsumov said the revised package was intended to connect specialists, investors, research and the market within a single innovation-support system.
The official Milli Majlis bill text includes the 20-year technology incentives, the extension of the startup benefit from three years to seven years and related investment provisions.