“Azerbaijan offers gateway to fast-growing markets of the Caspian region”: IDDA

Driven by its unique, picturesque geographical location and advantage - Azerbaijan is fast emerging as a perfect destination for companies looking forward to drive innovation and create a strong foothold in the Caspian region.

Keeping this in mind, Indian companies should look at investing in Azerbaijan because it is strategically positioned at the crossroads of Europe and Asia.

Today, the country provides competitive incentives, including tax breaks and access to free economic zones, making it a cost-effective location for business expansion. With a focus on digital transformation, Azerbaijan is investing heavily in infrastructure and talent development, ensuring a skilled workforce.

Yevgeniya Bikmurzina, Head of Innovation Ecosystem Department, Innovation and Digital Development Agency (IDDA), Azerbaijan, speaks with Zia Askari from TelecomDrive.com on how Azerbaijan is becoming a preferred destination for future-proof investments to dive innovations.

What are the top priorities for IDDA as it looks for Indian companies to come towards Azerbaijan?

At IDDA our top priority is attracting Indian companies that align with Azerbaijan’s key sectors of development. We seek firms that offer mutual growth opportunities through technology partnerships and market expansion.

Indian companies that understand our regulatory environment and can integrate smoothly into Azerbaijan's ecosystem are highly valued. A focus on knowledge transfer and talent development is crucial to strengthen our local workforce. Lastly, we prioritize companies committed to long-term, sustainable collaboration.

What are some of the business verticals where Azerbaijan is looking to attract most companies today?

As Azerbaijan is offering wide range of tax benefits for technopark residents, it is crucial to answer main criteria as developing software or integration systems. Up until today we were more of the vertical agnostics, but now we are focusing on cybersecurity, fintech, climate/energy tech and gaming sectors are main verticals supported by government.

What kind of benefits can Azerbaijan offer for Indian companies?

Azerbaijan's tax benefit program offers a comprehensive package for technology companies. The key features include a 10-year "tax haven" status for Technopark residents, providing a 0% personal income tax on monthly salaries up to $4,700 (5% above this threshold), full exemption from 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 a yearly revenue of 200,000 Manat.

Over 94 residents have already benefited from this law, 4 of them being international companies. There are also 15 companies from Türkiye, Israel, Cyprus, Pakistan, and the UAE have committed to becoming Technopark residents.

India has emerged as a preferred destination for startup ecosystems, ITES companies. Why should an Indian company invest in Azerbaijan today?

Indian companies should invest in Azerbaijan today because it offers a gateway to the fast-growing markets of the Caspian region, strategically positioned at the crossroads of Europe and Asia. Azerbaijan's innovation ecosystem is rapidly evolving, with strong government support for tech, ITES, and startups.

The country provides competitive incentives, including tax breaks and access to free economic zones, making it a cost-effective location for business expansion. With a focus on digital transformation, Azerbaijan is investing heavily in infrastructure and talent development, ensuring a skilled workforce. Lastly, the country's stable business environment and focus on innovation make it an ideal partner for Indian companies seeking new markets.

Besides India, what are some of the other countries that Azerbaijan is looking forward to working with?

Our goal is to position Azerbaijan as a preferred destination for international tech businesses and attracting companies from   countries all over the world. This initiative is centered around the country's Technopark, offering a suite of tax benefits and relocation assistance that promises to reshape the landscape for tech firms looking to expand their footprint in the Eurasian market.