Germany Trade & Invest: Azerbaijan to become even more attractive to investors in 2026

Azerbaijan will become significantly more attractive to foreign investors in 2025–2026 thanks to tax reforms and government incentives, Report informs.

These findings are presented in a joint update by the German-Azerbaijani Chamber of Commerce (AHK) and the German Trade and Investment Organization (Germany Trade & Invest).

The document notes that the implemented sustainable development strategies, improved business environment, and tax reforms are having a positive impact on the economy. The update highlights the growth of the non-oil sector, increased economic diversification, and positive medium-term GDP forecasts.

Special attention is paid to measures to reduce the "shadow economy." The authors note that the reforms are already yielding results: "The number of taxpayers is increasing, and declared income and VAT revenues are growing."

Germany Trade & Invest expert Uwe Strohbach believes that the new antitrust regulations are creating a more innovative and competitive business environment in Azerbaijan: "The tax authorities' medium-term strategy until 2028 includes incentives that will help small businesses grow faster and become efficient mid-sized enterprises. These measures will strengthen the private sector, expand diversification, and enhance economic resilience."

The update also emphasizes that tax incentives, free economic zones, and the strategic partnership with the EU are creating a favorable environment for European and, in particular, German companies: "The reforms are making the business environment in Azerbaijan more transparent and favorable."