Exploring Azerbaijan: Strategies For Boosting Tourism And Trp

A Temporary Residence Permit (TRP) in Azerbaijan is a document issued by the State Migration Service that allows foreign citizens to live, freely enter, and leave Azerbaijan for a specified period. TRP holders can reside in Azerbaijan for the duration of the permit, move freely within the country, and cross the border using a passport and residence permit if they initially entered Azerbaijan on a visa. TRP applicants must submit their applications 30 days before the expiry of their temporary stay to avoid legal issues. The review period for TRP applications is typically between 15 and 20 days but can sometimes be longer.

Close relationship with an Azerbaijani citizen

Having a close relationship with a citizen of Azerbaijan is one of the primary grounds for obtaining a Temporary Residence Permit (TRP) in the country. This includes having close relatives who are Azerbaijani citizens, such as parents, grandparents, siblings, and their children. It also applies if you are a family member of someone who already holds a residence permit in Azerbaijan, including spouses, children, and parents.

To apply for a TRP on the basis of a close relationship, you must submit the following documents:

• A notarized consent letter from the family member or close relative confirming the relationship. This should refer specifically to Article 45.1.1 of the Migration Code of the Republic of Azerbaijan.
• All other standard documents required for a TRP application, including a passport copy, medical certificate, document authorizing temporary stay or residence, photos, document for residential registration, application from the person providing housing, identity document copy of the housing provider, and state fee payment receipt.

It's important to note that there are specific requirements and procedures for obtaining a TRP in Azerbaijan, and the process should be initiated in a timely manner to ensure compliance with legal requirements. The TRP offers more rights and fewer restrictions compared to temporary registration, and it is issued by the State Migration Service of Azerbaijan.

Investing in the country's economy

Investing in Azerbaijan's economy is one of the ways to obtain a Temporary Residence Permit (TRP) in the country. Here is some information on how to invest in the country's economy:

The Investment Climate in Azerbaijan

The overall investment climate in Azerbaijan is positive and continues to grow, despite significant challenges. The country has been working to integrate more fully into the global marketplace, attract foreign investment, and diversify its economy. The government has introduced reforms and targeted specific sectors to achieve this.

Key Sectors for Investment

While the oil and gas sector has traditionally attracted the largest share of foreign investment, the Azerbaijani government has identified four non-oil sectors for diversification: agriculture, tourism, information and communications technology (ICT), and transportation/logistics.

Investment Opportunities

The government has also targeted the renewable energy sector for development and is actively seeking investment in this area. The government has introduced tax and investment incentives for non-oil export sectors, including certain exemptions from corporate and property taxes, favourable tax treatment for manufacturing, and subsidies for certain exports.

Special Economic Zones

To support increased local and foreign investment in non-oil sectors, the government established the Alat Free Economic Zone (AFEZ) in 2016. AFEZ provides businesses with tax exemptions, protection from nationalization, and guarantees the free flow of funds in and out of the free trade area.

Bilateral Investment Treaties

Azerbaijan has signed numerous Bilateral Investment Treaties (BIT) to encourage and protect foreign investment. These treaties provide foreign investors with legal protection, equal treatment, and the ability to repatriate profits and revenues.

Foreign Company Participation

Foreign companies can participate in subsidized research and development programs financed or subsidized by the Azerbaijani government. Additionally, foreign companies can take advantage of the country's market infrastructure, including legal, tax, and banking systems, to assess risks and make informed investment decisions.

Requirements and Restrictions

While the Azerbaijani government actively seeks foreign direct investment, there are some requirements and restrictions to be aware of. Foreign citizens, organizations, and enterprises may lease land but are not permitted to own it. Additionally, foreign ownership in the media sector is strictly limited.

Investment Risks

It is important to note that the emerging Azerbaijani economy is heavily dependent on hydrocarbon resources, and fluctuating commodity prices may negatively impact investment returns.

By investing in Azerbaijan's economy, particularly in the targeted sectors of agriculture, tourism, ICT, and transportation/logistics, foreign investors can take advantage of the country's positive investment climate and various incentives while navigating any requirements and risks.

Owning real estate in Azerbaijan

Foreigners can buy and own property in Azerbaijan, with some exceptions. While foreigners cannot own land, they can purchase real estate, including houses, villas, apartments, and commercial property. This means that foreigners can buy buildings but not the land they stand on.

The real estate market in Azerbaijan is recovering and gaining momentum, especially with the implementation of mortgage programs and the revival of business activity. Demand in the real estate market is currently deferred and sluggish, with buyers showing less interest in the secondary market and investing more in new buildings.

Finding a Property

The first step is to find a suitable property and conduct a physical inspection. It is important to agree on the price and terms with the seller.

Signing a Purchase Agreement

The next step is to sign a purchase agreement before a notary. It is not necessary to be physically present in Azerbaijan for this step, as it is possible to be represented by a notary-approved power of attorney.

Applying for State Registry

At the same time as the notary deal, an application to the state registry over the property is conducted.

Obtaining Title to the Property

After the above steps, the final stage is to obtain the title to the property.

Taxes and Costs

Property transactions may have associated taxes and costs, but these can be reduced with proper planning and optimization.

Inspection Trips

Some real estate platforms offer inspection trips to help buyers find their dream property in Azerbaijan. These trips include airport transfers, assistance during the trip and with legal proceedings, and help with opening a bank account in Azerbaijan.

Remote Purchase

It is possible to execute a real estate purchase and sale transaction remotely, without the need for the buyer's personal presence in Azerbaijan.

Temporary Residence Permit (TRP)

Real Estate Prices in Azerbaijan

The approximate price of real estate in Azerbaijan per square meter is as follows:

• Apartments in new buildings (black frame condition): 800 USD
• Apartments on the secondary market: 900 USD
• Detached houses, cottages, and villas: 1,000 USD
• Commercial premises: 1,000 USD

Being a highly qualified specialist

To obtain a Temporary Residence Permit (TRP) in Azerbaijan, one of the requirements is to be a highly qualified specialist in specific fields. This includes sectors such as the economy, industry, defence, science, culture, and sports.

To be eligible, you must be invited by citizens of Azerbaijan or legal entities established in the country. These specialists should be included in the category defined by the relevant executive authority, and they should be invited to perform work or render services in the specified activity spheres.

The TRP allows foreign citizens to live, enter, and leave Azerbaijan for a specified period, with more rights and fewer restrictions compared to temporary registration. It is important to note that the TRP is granted for a particular duration, and there are specific procedures and requirements that must be followed for obtaining and extending the permit.

• The TRP is issued by the State Migration Service of Azerbaijan, and the application process involves submitting various documents and adhering to specific criteria and timelines.
• To apply for the TRP, specialists should do so 30 days before the expiry of their temporary stay to avoid any legal issues.
• Required documents for the application include a notarized birth certificate copy (if under 18 and without a passport), a medical certificate for infectious diseases, a document authorizing temporary stay or residence, an application from an inviting authority, two photos of a specified size, a document for residential registration, and other supporting papers.
• The TRP provides benefits such as freedom of movement within Azerbaijan, the ability to work without additional permits (if the TRP is obtained based on work), and access to social benefits, including pension savings.
• It is important to carefully review the specific requirements and procedures for obtaining and extending the TRP, as outlined by the State Migration Service of Azerbaijan.

Overall, obtaining a TRP in Azerbaijan as a highly qualified specialist involves meeting specific eligibility criteria, submitting the necessary documents, and understanding the benefits and restrictions associated with the permit.

Being a family member of a foreigner or stateless person residing in Azerbaijan

If you are a family member of a foreigner or stateless person who is temporarily or permanently residing in Azerbaijan, you may be eligible for a Temporary Residence Permit (TRP). The TRP is a document issued by the State Migration Service of Azerbaijan, allowing foreign citizens to live, freely enter, and leave Azerbaijan for a specified period.

To be eligible for a TRP as a family member, you must meet the following requirements:

• Provide a notarized consent letter from your family member or close relative, as specified in the Migration Code of the Republic of Azerbaijan, Articles 45.1.1 and 45.1.5.
• Submit other required documents, including a copy of your passport, a notarized copy of your birth certificate (if you are under 18 and without a passport), a medical certificate for infectious diseases, a document authorizing temporary stay or residence, two photos sized 3.5 x 4.5 cm, a document for residential registration, an application from the person providing housing, a copy of their identity document, and a receipt for the state fee payment.

It is important to note that the deadline for applying for a TRP is 30 days before the expiry of your temporary stay. Failure to apply before this deadline may result in your stay in Azerbaijan becoming illegal.

Once you have gathered all the required documents, you can submit your application to the State Migration Service (SMS) in person or through their electronic portal. The review period for TRP applications is typically 15-20 days but may take longer in practice. During this time, you can check the status of your application by calling or visiting the nearest branch of the ASAN Service or using the online service of the State Migration Service.

Frequently asked questions