How Azerbaijan is Opening Doors to Indian Tech Companies

The Government of Azerbaijan with the support of the Innovation and Digital Development Agency (IDDA) has unveiled an ambitious program designed to position the country as a preferred destination for international tech businesses, focusing on attracting companies from India and other countries abroad.

The initiative, centered around the country's Technopark, offers 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.

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 revenue of 200,000 Manat.

The program also includes streamlined migration processes, with work permit exemptions for ICT specialists and senior executives, and comprehensive relocation assistance, including help with residency permits, office space acquisition, and lodging arrangements. the country offers. This package is designed to attract international technology companies and position Azerbaijan as an attractive tech hub in the region.

"We are extending a warm invitation to Indian tech companies to join our thriving ecosystem," stated Pasha Aliyev, Regional VP, Soft-landing at Innovation and Digital Development Agency. "Our Agency offers not just financial incentives, but a gateway to the vast Eurasian market and a chance to be part of Azerbaijan's rapidly growing IT landscape."

The Relocation program targets companies in system integration and software design and development, aligning with Azerbaijan's Vision 2030 focus on digitalization, tech entrepreneurship, and innovation ecosystem development. This initiative is part of a broader focus of Azerbaijan on IT with more than 400 million dollars annually spent on it in the governmental center only. IDDA actively drives the digitalization in the country with multiple projects and initiatives, including the development of the “mygov” platform, designed to organize the contacts of citizens with state bodies and provision of G2C services, the Paperless government initiative ensuring the exchange of electronic documents between governmental institutions and many others. The Agency also focusses on human capital development through its own scholarship program Technest, as well as partnering with international educational programs. These initiatives are significantly enhancing the country's IT potential and creating even more opportunities for companies deciding to relocate.

"Our commitment to digitalization and ecosystem building goes beyond tax benefits," added Pasha Aliyev. "We're creating a comprehensive environment where tech companies can thrive, innovate, and contribute to Azerbaijan's digital transformation."

This initiative comes at a time when many tech hubs are facing economic challenges, positioning Azerbaijan as an attractive alternative for companies seeking stability and growth opportunities. The country's focus on digital advancement and creating a supportive ecosystem for IT businesses makes it an increasingly appealing destination for tech companies looking to expand their operations.

Azerbaijan offers a unique environment for tech companies looking to expand," emphasized Pasha Aliyev. "Our multilingual young population, combined with a melting pot of different cultures, creates a dynamic and innovative workforce. Additionally, our extensive infrastructure enables newcomers to quickly settle and integrate into their new home. This blend of cultural diversity, youthful talent, and modern amenities makes Azerbaijan an ideal location for tech firms seeking growth and innovation in the Eurasian market.”

Currently IDDA only offers membership in the virtual Technopark. But it is also now actively working on opening the doors to an offline facility that will be based in the heart of Baku – Azerbaijan Innovation Center (AIM) – a platform that will cater to the needs of people in developing their tech companies by providing them access to opportunities, inspiration, talents, funding, knowledge, network, and global connections.

The Innovation and Digital Development Agency, established under the Ministry of Digital Development and Transport of Azerbaijan in 2021, serves to contribute to the field of digital transformation and strengthen the innovation ecosystem of the country. Among its priority directions are organizing digital government and digital society, developing and promoting digital public services, supporting local and foreign ICT businesses by enabling the environment for their accommodation and growth, and supporting human capital development in the field of ICT.