Azerbaijan changes Migration rules.
New amendments to Migration code accepted

   On May 16, 2023, President of Azerbaijan Ilham Aliyev signed new amendments to the Migration Code of Azerbaijan. New amendments change the rules for obtaining of Temporary Residence Permit (TRP) and Permanent Residence (PRP) in Azerbaijan.
   New Amendments to Migration Code are the following:   

   1) New redaction of Clause 45.1.2.
   Possessing in the territory of Azerbaijan the real estate that costs at least 100.000 AZN and more, as well as investing of the same amount of money on the basis of a deposit agreement (temporary deposit) in banks operating in Azerbaijan now can be considered an investment in the economy of Azerbaijan.

   2) New ground for getting the TRP added (Clause 45.1.3-2).
   If a person owns state securities with a nominal value of at least 100,000 manats or investment securities of legal entities, the shares of which are 51% owned by the state. This foundation is also considered an investment in the economy of Azerbaijan.

   3) Being a deputy director is no longer a ground to get the TRP (Article 45.1.6-1 changed).
   Now, if the founder or at least one of the founders holds the position of the head of a legal entity, established in Azerbaijan, the paid authorized capital of which is the minimum approved by the relevant executive authority, or owns at least 51% of the shares (shares) of such a legal entity, such person can obtain a TRP in Azerbaijan.
   In addition, a foreigner and a stateless person must temporarily reside in the territory of Azerbaijan for at least 1 year.
   There is also a new requirement to the company’s turnover (it mustn’t be less than the minimum approved by the Ministry of Economy of Azerbaijan). This also applies to persons who wish to obtain a TRP and PR (Permanent Residence) on the basis of entrepreneurship. In these cases, along with other documents, it will be necessary to submit a declaration from the Tax Service confirming the turnover volume for the last 1 year.

   4) Changes and requirements specified in Clause 2 and 3 above do not apply to:
   – Holders of investment promotion documents;
   – Holders of “Startup” certificate;
   – Carrying out activities in economic regions, determined by the relevant executive authority;
   – Non-commercial legal entities;
   – Residents of industrial parks, industrial districts and agricultural parks.
   
   5) The 80/20 rule has been expanded (for entrepreneurs):
   If earlier, in order to obtain a residence permit on the basis of entrepreneurship, it was necessary to comply with the rule “80% of employees must be locals and only 20% can be foreigners”, but now it’s also possible to hire following persons:
   – who have Permanent Residence in Azerbaijan;
   – who are married to a citizen of Azerbaijan (if such citizen is registered in the territory of Azerbaijan at the place of residence);
   – who have applied for a refugee status, received refugee status or political asylum;
   – recognized as victims of human trafficking or assisting the criminal prosecution authorities;
   – citizens of Azerbaijan whose dependents have not reached the age of 18 or whose disability is set at the level of 81-100 percent (due to impaired body functions).

   6) Migration Service will send information to the National Depository Center  within 3 working days about persons who have received a Temporary Residence Permit (TRP) and Permanent Residency (PR) in Azerbaijan on the basis of ownership of state securities or investment securities of legal entities, whose shares are 51% owned by the state.
   If the value of these securities is less than 100.000 AZN (for TRP) and 200.000 AZN (for PR) respectively, or they are privatized, in this case, the National Depository Center will provide information about this to the Migration Service within 3 working days.

   7) A foreigner or stateless person can obtain Permanent Residency in Azerbaijan, who lived in the territory of Azerbaijan for the last 2 years on the basis of an appropriate permit, if he:
   – holds the position of head or deputy head of a branch/representative office of a foreign legal entity in Azerbaijan;
   – is a founder or at least one of the founders holds the position of the head of a legal entity established in Azerbaijan, the paid-up authorized capital of which is the minimum approved by the relevant executive authority, or owns at least 51% of the shares (shares) of such a legal entity;
   – is engaged in entrepreneurial activity in Azerbaijan.

   8) New list of grounds for obtaining Permanent Residency in Azerbaijan added (Article 52.1 changed). Now there are following grounds for obtaining Permanent Residency:
   – if father, mother, husband (wife), child, sister or brother are citizens of Azerbaijan;
   – when investing in the country’s economy at least 500.000 AZN;
   – Possessing a real estate which is worth at least 100.000 manats on the territory of the Republic of Azerbaijan or funds in the same amount in the banks of the Republic of Azerbaijan;
   – when owning government securities with a nominal value of at least 200.000 AZN or investment securities of legal entities, the shares of which are 51% or more owned by the state;
   – Being a highly qualified specialists in the spheres of economy, industry, defense, science, culture, sports & etc.;
   – Specialists of categories approved by the President of Azerbaijan, invited by citizens of Azerbaijan or legal entities established in Azerbaijan to carry out work or provide services in the areas of activity determined by the President of Azerbaijan;
   – Being a family members of foreigners and stateless persons temporarily or permanently residing on the territory of the Republic of Azerbaijan;
   – Holding positions of head or deputy head in the branch/representation of a foreign legal entity in the Republic of Azerbaijan;
   – if the founder or at least one of the founders holds the position of the head of a legal entity established in Azerbaijan, the paid-up authorized capital of which is the minimum approved by the relevant executive authority, or owns at least 51% of the shares of such a legal entity. In this case, the turnover of this legal entity must be the amount determined by the Ministry of Economy.
   Important Note: The requirements for the size of the authorized capital and the volume of turnover do not apply to non-commercial legal entities.
   – Engaging in entrepreneurship activity in the Republic of Azerbaijan. In this case, the amount of turnover is also set by the Ministry of Economy.

   9) The deputy head of a branch/representative office of a foreign legal entity now needs to obtain a work permit (Article 64.0.13-1 changed).
   Now, only head of a branch/representative office of a foreign legal entity in Azerbaijan and a founder owning at least 51 percent share (s) in the authorized capital of this legal entity (when operating in a legal entity established by it) do not need a work permit.

   And the last, but not least, earlier, if a foreigner lost the relevant basis for obtaining of Permanent Residency, his permission was canceled. New amendments to the Migration Code of Azerbaijan humanized and democratized this process and now a foreigner will have the opportunity to extend permanent residency in Azerbaijan upon presentation of a document confirming any other grounds for permanent residency in the country (Article 55.0.9 changed).
   Holders of Permanent Residency Permits issued or renewed before the entry into force of the law will not be subject to this restrictive effect and will still be able to continue to receive such permits on the same grounds.

   If you want to know “How to get a TRP in Azerbaijan“ and “How to get a Permanent Residency in Azerbaijan” you can check theese articles on our website and apply for our legal aid today!