Promotion of investment in the Nagorno Karabakh Republic is one of the priorities of the NKR government’s economic policy.
The main principles of the NKR’s investment policy are:
- To provide a sound legislative framework regulating investments;
- To ensure equal conditions for economic activity for foreign and local investors;
- To define favourable conditions for investors;
- To ensure freedom of investment activities;
- To ensure the protection of investments and interests of investors;
- Adoption and implementation of international legal acts and international practice regulating investing activity.
In the NKR foreign investments are guaranteed by the 1995 NKR law “On Foreign Investments”, which stipulates certain privileges and guarantees to stimulate investment.
In the event of amendments to the foreign investment legislation of the Nagorno Karabakh Republic, the legislation that was effective at the moment of implementation of investments shall be applied, upon the request of a foreign investor, during a 10 years period from that moment.
Foreign investors shall be entitled to implement investments in the NKR through the creation of enterprises entirely owned by foreign investors, (including representative offices and branches) buying existing companies or establishing joint ventures.
Foreign investments in the NKR shall not be subject to nationalization. Government bodies cannot, also, confiscate foreign investments. Confiscation may be allowed only as an extreme means in case of emergency declared in accordance with the legislation of the NKR, and it may be applied only upon the judgement of a court and with full compensation.
Foreign investors are entitled to investments in the NKR by means of:
- foreign currency;
- national currency;
- movable and immovable property and any property right related to that property;
- stock, bonds and other securities;
- the right to claim money or performance of contractual obligations;
- any right to valuable intellectual property;
- paid services;
- and in any other type of investment not prohibited by the legislation of the NKR.
There are no limitations regarding the forms of foreign ownership, volume, inflow of financial resources and foreign labour force. Although foreign citizens do not have the right to own land (law provides a long-term land lease), legal entities registered by foreign citizens have the right to buy land.
Based on concession contracts signed between foreign citizens and the NKR government or other authorized bodies in a prescribed manner, foreign investors gain the right to exploit renewable and non-renewable natural resources in the NKR.
Having paid the taxes and having made other payments stipulated by the NKR’s legislation, foreign investors dispose of their profit (income) at their discretion. Foreign investors have the right to open current, settlement and other accounts in banks operating in the NKR and, according to the NKR’s legislation, use the lawfully obtained funds in a prescribed manner to buy foreign currency and other goods in the NKR domestic market.
Free export of investor’s property, profit (income) and other funds lawfully gained from investment or as a payment for labour is guaranteed.
Source: Artsakh Investment Fund