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10 Reasons to Invest in NKR
1. Well-Trained and Cheap Labor Force
During Soviet times Nagorno Karabakh developed a strong base of professional
engineers who are now available and willing to work, should they be
given the opportunity. In addition to this, the average monthly wage
in the NKR is $50 USD, a fraction of the average daily wage in industrialized
countries.
2. Tax Benefits
Companies that use foreign capital while doing business in the Nagorno
Karabakh Republic are eligible for exemptions from profit taxes. In
addition to this, there are certain goods that are free of excise and
value added taxes when produced by foreign investors.
Click here for a table on Profit Tax
Exemptions.
3. No Export Duties
Although goods that are imported to NKR are subject to a 10% duty, the
exporting of goods is free of any such payments.
4. Extremely Low Operating and Living Costs
Utilities, rent, construction, overhead, service and living costs are
among the lowest in the region. Thus, NKR has significant cost advantages
while offering geographical proximity to Armenia.
5. Strong FDI Growth
Since 1999, FDI has grown 10-fold. Click
here to view major investments table.
6. Satisfaction Among Investors
Karabakh Telecom Co. (Lebanon) www.karabakhtelecom.com,
Sirkap Armenia Co. (Switzerland), and Haik Watch and Jewelry Co. (Switzerland)
are the largest recent foreign investments in NKR. All have been successful
in creating jobs and generating profits.
7. Favorable Geography and Climate for Agriculture
The geography and climate of NKR are extremely favorable for the cultivation
of fruits and vegetables, particularly grapes, which are instrumental
in the production of Karabakh's well-known wines and liquors. The geography
of NKR lends to success in breeding and raising cattle.
8. Social and Internal Political Stability
Since the 1994 cease-fire between NKR and Azerbaijan, social and political
stability within NKR has prevailed. An effective government has since
been established and is in the pursuit of democracy. Click here for
information on the structure of the branches of government and officers
in NKR.
9. Financial Stability
The banking system in NKR acts as an entity that is regulated by the
Central Bank of Armenia. Therefore, all financial transactions are subject
to laws and regulations common to both Armenia and NKR. This relationship
implies that Armenia's macro economic stability is also reflected in
the NKR.
10. Positive Impact on Armenia
A stronger NKR certainly plays an important role in the development
of a stronger Republic of Armenia. Foreign direct investments made in
NKR will necessarily translate into improved trade and increased self-sufficiency.
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