201809.12
0

The establishment of Special Economic Zones (SEZ) in Turkmenistan is regulated by Law of Turkmenistan “On Free Economic Zones”, dated October, 9 2017 (hereafter, the “Law”).

Pursuant to art. 5 of the Law,  the following different types of zones can be established:

  • Commercial
  • Industrial
  • Technical
  • Service zones, specializing in providing financial, credit, banking, tourist-recreational, information services and other kind of services;
  • Logistics
  • Agro-industrial zones
  • Zones with a combined propriety activities

SEZ participants can be, inter alia, foreign entities and individuals. Moreover, foreign legal entities are allowed to operate through branches and representative offices.

The minimum volume of capital investments must be determined separately for each type of SEZ.

SEZ are established for a period of 40 years, with the possibility of extension.

A set of preferences are provided for residents of SEZ. The main preferences are:

Reduction of registration time (foreign residents)10 working days for branches and representative offices of foreign legal entities (generally, it takes 3-4 months from the date the necessary documentation was duly submitted)
Land rent rate

0% for the first 3 years from the date of contract

50% of the rate established by the legislation of Turkmenistan in the next 7 years

100% after 10 years

Customs regimefree customs zones (except for tourist-recreational ZES)
Tax regimefavourable tax treatment
Currency regimeparallel circulation of national and foreign currencies and exchange of national money in freely convertible currency.
Foreign workers

exemption from the obtaining of a work permit

exemption from compliance to the numerical conditions in terms of the employment of local and foreign people (currently, ninety per cent of the workforce of foreign-owned enterprises must be citizens of Turkmenistan).

Licenseexemption from obtaining of a license, however they are obliged to comply with the requirements and conditions laid down under Turkmenistan law on licenses.

SEZs provide to foreign investors comfortable conditions to conduct business, remove the administrative barriers and provide the opportunity to access the Turkmenistan market which is historically situated in a natural crossroad for major transit corridors from East to West, from North to South and is a part of the Great Silk Road.  

Turkmenistan’s advantageous geographic position allows quick delivery of the SEZ’s products also to the market of Europe, Middle East, Asia-Pacific.

Further reading
Further reading of Desk Russia on Special Economic Zones

Kazakhstan
Innovative Zones
Industrial Zones
Logistic Zone 
Touristic Zone 
Special Economic Zones

_________
DISCLAIMER
The contents of this publication is for informational purposes only. It is not intended to provide legal or other professional advice or opinions on specific facts or matters. Pavia e Ansaldo assumes no liability in connection with the use of this publication.