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Azerbaijan: Residence Right and Work Permit Exemption Restrictions Implemented

June 2, 2023

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  • AzerbaijanAzerbaijan

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At a Glance

The government has restricted several immigration categories in Azerbaijan:

  • Deputy directors, some directors, and some founders and shareholders of legal entities with foreign investment established in Azerbaijan must apply for work permit as they no longer qualify for a work permit exemption; and
  • Fewer foreign nationals qualify for temporary and permanent residence in Azerbaijan, which is meant to restrict the foreign national pool of workers.  

The situation

The government has implemented several restrictions to residence and work rights for foreign nationals in Azerbaijan. The rules became effective May 16, 2023. 

A closer look

CHANGE DETAILS IMPACT
Work permit exemption eligibility restricted 
  • Deputy directors of legal entities with foreign investment established in Azerbaijan must apply for work permit as they no longer qualify for a work permit.  
  • Founders and shareholders of legal entities with foreign investment established in Azerbaijan must apply for work permit as they no longer qualify for a work permit exemption unless they hold at least 51 percent of the shares of the legal and are in an active managerial position in the legal entity (the legal entity should meet share capital and annual turnover requirements). 
  • Directors of legal entities with foreign investment established in Azerbaijan must apply for work permit as they no longer qualify for a work permit exemption unless the legal entity meets share capital and annual turnover requirements, and unless the director is an active managerial position in the legal entity.
More foreign nationals will be subject to the administrative hurdles of applying for a work permit in Azerbaijan, which will increase the resources and costs involved in such assignments.  
Temporary residence permit eligibility restricted 
  • To qualify for a temporary residence permit, founders, directors and shareholders of legal entities with foreign investments established in Azerbaijan must now meet certain shareholding, annual turnover and other legal requirements.
  • There are certain exceptions for startups and companies in free economic zones, among others. 
Fewer foreign nationals qualify for temporary residence in Azerbaijan, which is meant to restrict the foreign national pool of workers.  
Permanent residence eligibility restricted  The list of foreign nationals who qualify to apply for permanent residence has been restricted. The full list is available on the government website and notably includes certain entrepreneurs and shareholding founders of legal entities. Fewer foreign nationals qualify for permanent residence in Azerbaijan.

Background

The government in Azerbaijan is taking measures to nationalize the oil and gas, construction, medicine and other industries to ensure that the local labor force is appropriately protected during the current economic downturn and high unemployment rate. 

Looking ahead

It is likely that the government will continue to issue policy to restrict foreign workers’ stay and other immigration rights in order to maintain its protective policy over local workers. 

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].  

 

Country / Territory

  • AzerbaijanAzerbaijan

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