Azerbaijan Introduces New Regulations for Temporary and Permanent Residence Permits
Baku, Azerbaijan – In a bid to enhance its immigration system, Azerbaijan has recently implemented new regulations governing the issuance of temporary and permanent residence permits (TRPs and PRPs). These changes, introduced in May 2023, aim to attract foreign investors, entrepreneurs, and skilled professionals while ensuring the country’s economic growth and national security.
Under the new regulations, several categories of individuals are now eligible to apply for temporary residence permits (TRPs). This includes investors in legal entities where the state of Azerbaijan holds a stake of at least 51%, provided their investment is worth AZN 100,000 or more. Additionally, individuals who make qualifying investments with a cumulative value of at least AZN 500,000 are also eligible to apply for TRPs.
Another significant change pertains to individuals holding a stake of at least 51% in commercial legal entities and directors of these entities. Previously, only directors and deputy directors were eligible for TRPs. However, the new regulations now allow shareholders and directors to apply, provided they meet other eligibility criteria. These include the entity being established in Azerbaijan, having at least one foreign national as a founder, and meeting specific capital requirements. It is important to note that this change does not apply to entities considered residents of industrial parks.
Entrepreneurs who carry out business activities and meet certain hiring and minimum revenue requirements are also eligible for TRPs. Previously, a workforce composed of at least 80% Azerbaijani nationals was mandatory. However, this requirement has been modified to include a broader range of individuals, such as spouses of Azerbaijani nationals, PRP holders, refugees, and asylees. Similar to the previous change, this modification does not apply to entrepreneurs considered residents of industrial parks.
Moreover, the new regulations enable TRP holders who have resided in Azerbaijan for at least two years to apply for permanent residence permits (PRPs). PRP eligibility is contingent upon meeting specific criteria, which include being a family member of an Azerbaijani national, a permanent resident, or possessing qualifying investments and assets.
These qualifying investments and assets can include holding investments of at least AZN 500,000, maintaining a fixed-term deposit of at least AZN 200,000 in a local bank, owning state securities totaling at least AZN 200,000, or owning securities in legal entities where the state of Azerbaijan holds a stake of 51% or more. Furthermore, individuals can qualify for PRPs if they own immovable property worth at least AZN 200,000 or are working as high-level specialists in various fields such as industry, military, science, culture, and sports.
Directors or deputy directors of a foreign legal entity’s branch in Azerbaijan, as well as individuals holding a stake of at least 51% in commercial legal entities, may also apply for PRPs, subject to meeting specific eligibility criteria.
Additionally, entrepreneurs who meet minimum revenue requirements, as determined by the Ministry of Economy, are eligible for PRPs.
These new regulations represent a concerted effort by Azerbaijan to attract foreign investors, skilled professionals, and entrepreneurs to contribute to the country’s economic development. By expanding the eligibility criteria for TRPs and PRPs, Azerbaijan aims to create a more favorable business environment and foster long-term economic growth.
The implementation of these regulations is expected to enhance Azerbaijan’s competitiveness in the global market, stimulate investment inflows, and promote innovation and entrepreneurship in various sectors. As the country continues to open its doors to international talent and capital, it is poised to experience significant social and economic benefits in the years to come.