Azerbaijan extends tax incentives for tech park residents to 20 years

Azerbaijan has extended the period of tax and social insurance benefits for technology park residents to 20 years.

According to Report, citing the Innovation and Digital Development Agency, the extension is stipulated in legislative amendments approved by decrees signed by President Ilham Aliyev on October 22, 2026.

The amendments apply to the Tax Code and Migration Code, as well as the laws on Social Insurance, Customs Tariffs, Licences and Permits, and Public Procurement.

The changes are aimed at accelerating the development of the digital economy, supporting technology entrepreneurship, attracting foreign digital specialists to Azerbaijan and promoting the commercialization of innovative products.

Under the new rules, effective January 1, 2027, the tax incentives applicable to income and profits generated by eligible technology park residents from relevant activities, dividends paid, and property and land used for these activities will be extended to 20 years. The incentives will also apply to residents operating outside technology parks.

In addition, a 0% income tax rate will apply for 20 years to employment income earned by employees of residents engaged in the relevant activities. For new residents, the period during which they can opt for the existing method of calculating social insurance contributions for employees engaged in these activities will also be extended from 10 to 20 years.

Meanwhile, tax and VAT incentives will apply for 20 years to payments made by startups and technology park residents to foreign companies for cloud, platform, software and API services used in their operations.

The amendments were prepared as part of the implementation of the Action Plan for Accelerating Digital Development in the Republic of Azerbaijan for 2026–2028, approved by the president on February 27, 2026.