Karabakh and East Zangezur, State Support and Incentives for Investors

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Karabakh and East Zangezur, State Support and Incentives for Investors

Karabakh and East Zangezur, State Support and Incentives for Investors

Karabakh and East Zangezur: State Support and Incentives for Investors
The state offers extensive incentive packages for residents wishing to initiate business activities in the liberated territories of Azerbaijan.

1. Tax and Customs Privileges (Until January 1, 2033)
Full Exemption (0%): Profit (corporate income), property, land, and simplified taxes.

Dividend Incentive: 0% tax rate on dividend income for shareholders.

Import Exemptions: Full exemption from VAT and customs duties on the import of equipment and raw materials for relevant sectors.

Tourism Promotion: Refund of a portion of VAT paid for hotel services (30% for cashless payments, 5% for cash payments).

2. Financial Support and Credit Incentives
State Guarantee: State guarantee for up to 90% of loans up to 5 million AZN (with a maximum annual interest rate of 15% and a maturity of up to 7 years).

Interest Subsidy: 10 percentage points of the loan interest rate are covered by the state for a period of 36 months.

Grace Period: No principal repayment required for a period of up to 36 months (interest-only payments).

3. Social Insurance and Utility Support
Social Insurance Subsidy: Subsidizing mandatory state social insurance contributions paid by employers and individual entrepreneurs (100% until 2026, with a declining rate in subsequent years).

Utility Discounts: 20% of monthly utility costs for those engaged in production activities are covered by the state budget.

4. Privileges for Specialists and Labor Resources
Local Specialists: 5 additional days of paid leave per year, a one-time allowance of 600 AZN, and a 1.2 multiplier applied to the base salary.

Foreign Specialists: Exemption from labor migration quotas for 5 years, accelerated work permit procedures, and fee discounts.

5. Industrial Parks (Aghdam and "Araz Valley Economic Zone")
Residents of industrial parks, for a period of 10 years from the date of registration:

Are fully exempt from core taxes.

Gain direct access to modern "Plug & Play" infrastructure (electricity, gas, water, fiber optics, railway, etc.).

Benefit from free or discounted terms for grid connection services (depending on power capacity).

As Alliance Legal Center, we provide full legal support for obtaining residency status in the liberated territories, promoting investment projects, and navigating the application processes for state support programs.

Contact us for applications and consultations.

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