The government of Azerbaijan offers ever-growing easy access to incentives and tax reliefs with a wide range of instruments that aid to minimize the cost burden and accelerate the returns on investments.  These incentives may also be tailored for projects in priority sectors classified as key areas for economic growth.

The special economic zones in Azerbaijan cover a broad range of zones, such as free-trade zones, industrial parks, technology parks, agricultural parks, and industrial estates which provide a wide range of incentive opportunities for investors in Azerbaijan. The main aim of the creation of the special economic zones was the expansion of the development of entrepreneurship and the whole economy in Azerbaijan by the formation of new competitive production and service industries based on the application of particular legislation and contemporary technologies.

According to the Tax Code of the Republic of Azerbaijan, significant incentives are applied to the residents of industrial parks. These residents are exempted from the following taxes for 10 years:

• Property and land tax;
• Corporate income tax;
• VAT for imported equipment;
• Import duties for imported equipment.

Besides incentives applied to the residents of the industrial parks, there is an Investment Promotion Document that also provides a wide range of privileges to the investors in order to create a favorable investment environment in the country, the improvement of existing incentive mechanisms, further advancement of the business environment and the development of the non-oil sector.

According to the Tax Code of the Republic of Azerbaijan, investors holding Investment Promotion Document are exempted from the following taxes for 7 years:

• Property tax;
• Land tax;
• 50% of corporate income tax;
• VAT for imported equipment;
• Import duties for imported equipment.