Azerbaijan is set to amend its legislation on currency regulation to better accommodate digital nomads, startups, venture capital funds, and accredited investors. The proposed changes aim to modernize the financial landscape and facilitate international business operations.
According to the Operative Information Center-OMM, the draft law was discussed during a session of the Milli Majlis (National Assembly) Committee on Economic Policy, Industry, and Entrepreneurship.
Under the new regulations, digital nomads will face no amount restrictions on the transfer of foreign currency earned from foreign sources to their accounts in authorized banks, provided that tax obligations are met. Similarly, non-residents will be able to repatriate profits, dividends, and capital gains from investments in Azerbaijan—including real estate and shares—without amount limitations. In cases where customs declarations are unavailable, official state registry extracts will be accepted as proof of legal investment.
The amendments also introduce specific provisions for venture capital funds and accredited investors. Profits derived from innovative projects abroad can be repatriated without the strict requirement of previous customs declarations, provided that the investment is verified by tax authorities or official documentation. Accredited investors are permitted to invest up to 2 million USD annually in foreign startups.
Furthermore, the law facilitates the development of innovative products by allowing resident companies to sell software or intellectual property developed by their foreign subsidiaries without the physical goods entering Azerbaijan, provided that the intellectual property rights remain with the resident company and profits are repatriated within 365 days. Additionally, payments for digital services, cloud computing, and software licenses up to 200,000 USD per month can be processed based on invoices without the need for bilateral contracts.
The legislation also outlines procedures for purchasing assets abroad and making donations to international organizations, ensuring that financial flows remain transparent while reducing bureaucratic hurdles for businesses and investors.
