“Digital nomads earning income from foreign clients can legally reside in Azerbaijan, continue to work with foreign clients, and may not have to pay taxes on this income.”
elchi reports that this was stated today by the Chairman of the Board of the Agency for Innovation and Digital Development, Farid Osmanov, at a briefing dedicated to legislative changes in the field of technology and innovation.
He said that income tax on business income, as well as taxes and VAT on foreign cloud, platform, and API services, will not be applied:
“Technopark residents are granted a residence permit for up to 3 years, and the visa can be extended. There is no need to establish a company for this; it is possible to work as an individual.”
The briefing outlined five steps that need to be taken for these individuals to live and work in Azerbaijan:
“First, it is necessary to come to Azerbaijan, as citizens of countries with a visa-free regime do not require a visa. Citizens of other countries can come with a tourist visa.
The second step is to obtain a nomad visa. Business visas are issued to digital nomads with documents confirming income from abroad.
The third step is to register for taxes. It is necessary to obtain a taxpayer identification number (VÖEN).
The fourth step is to become a technopark resident. For this, an online application with an advanced action plan is required. A certificate in this regard is issued within 7 business days.
The fifth step is to obtain a residence permit. Resident status is the basis for a residence permit. Official family members (spouse, children under 18) can also obtain a visa for this.
Foreigners or stateless persons can also apply. Their income must be solely from abroad. The average monthly income in the last 6 months must be at least 13 minimum wages.
In addition, it is necessary to specialize in one of the 4 relevant fields from the application. Quarterly reports on activities and income must be submitted. If the income falls below these conditions, the residence permit is revoked.”
It should be noted that the four fields in question are digital technologies, innovation, artificial intelligence, and cybersecurity.
For your information, digital nomads (or digital wanderers) are people who work remotely using the internet and modern technologies, regardless of their geographical location, and travel the world at the same time.