In order to expand investment activity, improve the business environment, and increase industrial production, the investment promotion mechanism in Azerbaijan was established and further improved through the Presidential Decrees of the Republic of Azerbaijan: No. 745 dated January 18, 2016, No. 877 dated April 20, 2016 (approving the “Rules for issuing a confirming document for the import of machinery, technological equipment, and installations to legal entities and individual entrepreneurs that have received an investment promotion certificate”), and No. 1913 dated December 20, 2022.
These measures have created favorable conditions for legal entities and individual entrepreneurs engaged in business activities in accordance with relevant criteria to benefit from tax and customs incentives.
To further expand investment activity, improve the business environment, and increase local production, the validity period for issuing investment promotion certificates has been extended until January 1, 2029. According to the Presidential Decree dated February 6, 2026, such certificates will be granted to projects in the following strategic areas:
▪️ Production projects based on local raw material sources (metal ores, aluminum, oil, gas, chemicals, construction materials, cotton, and silk cocoons)
▪️ Projects for energy generation from renewable sources
▪️ Waste management and recycling projects
▪️ Seawater desalination projects
▪️ Projects for the establishment of private industrial zones and production projects implemented by residents of industrial zones
▪️ Production projects of non-oil and gas industrial enterprises privatized through investment competitions after January 1, 2023
▪️ “First in Azerbaijan” projects aimed at establishing new economic activities that enhance self-sufficiency (import substitution) or increase the export potential of the non-oil sector
▪️ Projects for the production of medicines and pharmaceutical products (excluding packaging activities)
▪️ Projects for the repair of railway rolling stock and production of spare parts
▪️ Projects for the production of defense-related products
The investment promotion certificate is a document that grants, for a period of 7 years from the date of issuance, the right to benefit from incentives provided for in the Tax Code of the Republic of Azerbaijan and the Law “On customs tariffs.”
Projects granted such certificates are exempt from land and property taxes, as well as from customs duties and VAT on the import of machinery, technological equipment, and installations. Additionally, a 50% reduction in profit or income tax is applied.
As of January 1, 2026, a total of 632 investment promotion certificates have been issued to 528 business entities. The implementation of these projects is expected to attract over ₼9.2 billion in investments into local production and create more than 46,000 jobs. 13.1% of the projects are located in Baku and its surrounding settlements, while the remaining 86.9% are being implemented across the regions of the country. 63.8% of the projects are concentrated in industry, 32.9% in agriculture, 1.7% in logistics, and 1.6% in tourism.
More than 550 projects granted investment promotion certificates have already become operational, while work on others is ongoing. The products manufactured by these enterprises are exported to various countries, including the CIS, Europe, Arab countries, and others.
As of January 1, 2026, 6,455 confirming documents have been issued for the import of machinery, technological equipment, and installations worth $1.4 billion, allowing entrepreneurs to benefit from $336.2 million in tax and customs exemptions.
For 338 projects (54%), the value of imported equipment (actual investments) has already exceeded the minimum investment threshold set for those projects.
In 2025, 29 investment promotion certificates were issued to 29 business entities. The implementation of these projects is expected to attract over ₼1.9 billion in investments and create 2,559 jobs. During the same period, 316 confirming documents were issued for the import of machinery and technological equipment worth $110.8 million, enabling entrepreneurs to benefit from $25.6 million in tax and customs exemptions.
Sample Application to obtain an Investment Promotion Document Sample Application to obtain a supporting document Guidelines
