Advantages and Benefits of HTP

High-tech parks (HTP) are becoming essential for developing innovative economies in different countries. They provide unique conditions for the creation and growth of IT companies, contributing to developing new technologies and business models. In the context of rapid changes in the global market, such parks’ residents receive several significant advantages that contribute to their competitiveness. From tax benefits to access to qualified personnel, HTP resident status opens up broad horizons for companies to implement their ambitious projects and ideas. In this article, we will look at the main advantages and benefits of the Hi-Tech Park in Belarus.

Why it is essential to know about the advantages and benefits of HTP residency

It is essential for companies to know about the advantages and benefits of High-Tech Park residency for several reasons:
1. Cost optimization
HTP residents often receive tax benefits, which can significantly reduce the company’s operating expenses. This allows you to allocate your budget more efficiently and invest in business development.
2. Access to finance
Many HTPs offer various support and financing programs for startup companies. Knowing about these opportunities can help startups get the necessary investment during their growth phase.
3. Networking
HTPs often become centers of concentration for innovative companies, providing unique networking opportunities, sharing ideas and resources, and creating strategic partnerships.
4. Human resources
HTP companies have highly qualified specialists, which facilitates finding talented employees and contributes to forming a team capable of implementing ambitious projects.
5. Infrastructure and resources
Residents get access to modern infrastructure facilities and resources, such as research laboratories, innovation centers and technology platforms, which contributes to the development of their activities.
6. Attracting customers and partners
Having the status of a HTP resident can serve as an additional sign of trust for potential customers and partners, improving the company’s image in the market.
In general, knowledge about the advantages and benefits of HTP residency allows companies to better plan their actions, use available resources, and effectively develop their business in the modern market.

Hi-Tech Park in Belarus

HTP in Belarus is a special legal regime. HTP resident companies may be located in different parts of Belarus, but residency in the HTP entitles them to various benefits and advantages over other Belarusian companies.
Features of the work of companies-residents of the Belarusian HTP|
The work of resident companies of the Belarusian Hi-Tech Park (HTP) has several key features:
1. Tax benefits
HTP residents enjoy significant tax benefits. For example, IT companies are exempt from income taxes, value-added taxes (VAT), and other taxes. This creates a more favorable business environment.
2. Flexibility in doing business
For resident companies, there are no restrictions on organizational and legal forms, which allows you to optimize the management structure and financial flows depending on the business’s specific needs.
3. Access to qualified personnel
HTP residents attract a large number of highly qualified specialists in information technology and related disciplines. This creates favorable conditions for team formation and growth.
4. Climate for innovation
HTP aims to stimulate intonation activity. Residents can develop their technologies, receive mentoring support, and participate in acceleration programs.
5. Modern infrastructure
HTP provides its residents access to state-of-the-art office space, research laboratories, and other resources needed to work and develop new products.
6. Opportunities for exporting services
Many resident companies seek to enter international markets. HTP helps develop export destinations and provides consulting services for entering foreign markets.
7. Community and network of contacts
HTP creates a space for communication and cooperation between residents and conducts training events, which allow them to exchange experience and knowledge and find partners for joint projects.
8. International attractiveness 
HTP residents can work with foreign clients and partners within the framework of business processes they understand.
9. Opportunities for Crypto Businesses
Only HTP residents in Belarus can conduct business in the field of cryptocurrency circulation, in particular, their exchange, purchase and sale for other persons.
10. Simple procedure for attracting foreign personnel
Foreign employees, including managers of HTP resident companies, can stay in Belarus for up to 180 days each calendar year without a visa. HTP residents do not need to obtain special permits to hire foreign employees.
These features make HTP attractive for startups and companies operating in high technology, contributing to their development and strengthening their position in the market.

Tax benefits for HTP residents in Belarus

HTP resident companies have the following tax benefits that are granted to them in connection with their residency:

1. HTP resident companies are exempt from paying income tax and may apply a reduced tax rate of 9% for specific income categories. For non-HTP companies, the standard income tax rate is 20%.
2. Exemption from value-added tax (VAT) is provided for trade operations on Belarusian territory and certain transactions with non-residents. The usual VAT rate is 20%.
3. Foreign owners of companies that receive income from their activities in the HTP are subject to taxation at 0% or 5%.
4. Some types of transactions within the HTP are not subject to an offshore fee.
5. The income of individual founders of HTP resident companies, including foreign citizens, is subject to income tax at 9%. Tax rates of 6% or 0% are also possible, depending on the periods of profit distribution between the founders.
6. Real estate on the territory of the HTP that residents of the HTP do not rent out is exempt from property tax.
7. A customs duty rate of 0% is set for the import of equipment intended for the high-tech work of HTP residents.

Advantages of hiring foreign employees

HTP resident companies have advantages over other companies when hiring foreign employees. Let’s take a closer look at these advantages:
1. No special permission is required
Ordinary Belarusian companies that want to hire a foreigner must obtain a special work permit for each foreign employee (except for citizens of the Russian Federation and some other cases). These permits are issued taking into account the conclusion of the labor committee of the regional executive committee (Minsk city), which assesses the possibility of employment of a foreign specialist in Belarus. The permit can be issued for 1 to 2 years, depending on the employee’s qualifications. However, foreign employees who do not have permanent residence permits in Belarus and are attracted by companies that are residents of the Hi-Tech Park do not need to obtain such licenses.
2. Temporary residence permit for a foreign employee – in a simplified manner
The local Citizenship and Migration Office grants a temporary residence permit for a certain period. It is usually valid for no more than two years for highly qualified employees and up to 1 year for other employees. In the case of foreign employees who HTP residents employ, the permit is issued for the period of validity of the employment contract and an additional 2 months after its completion, as well as for the extension period of the employment contract and two months after its end. The peculiarity is that it is not the employee who applies for a temporary residence permit but the company that hires him. Often, this company provides and pays for a place for temporary residence. Without a temporary residence permit, foreign workers can stay in Belarus for six months during a calendar year.

Who is a highly qualified employee

Documents on education and work experience of at least five years confirm the employee’s high qualifications. The salary in the employment contract with such an employee must be at least 5 minimum wages per month. Starting from January 1, 2024, the minimum wage in Belarus is 626 rubles; therefore, as of October 2024, the salary of a highly qualified foreign employee should be 3,130 rubles (about 880 euros per month). You may need to translate and legalize your education documents to confirm your education.

Documents for a temporary residence permit

To obtain a temporary residence permit, a resident company of the Hi-Tech Park must submit to the Citizenship and Migration Department at the employee’s place of temporary residence:

• Application for a temporary residence permit.
• Copies of documents on employment of a foreign employee.
• Employee’s foreign passport or other document for traveling abroad.
• Employee’s health insurance policy.
• A document confirming the possibility of a foreign employee’s residence at the temporary residence address.
• Other documents required by the Citizenship and Migration Department.

To issue a temporary residence permit, you must pay a state fee — 3 fundamental values (120 rubles or about 33 euros). The permit is issued within 15 days.

3. A foreign employee does not need a visa to enter Belarus
As mentioned above, foreign employees of HTP resident companies can stay in Belarus without a visa for up to 180 calendar days per year. For visa-free entry, such employees must have a valid foreign passport. HTP resident companies send lists with the date of these employees (last name, first name, position or status, if it is the founder) and the details of their documents for traveling abroad to the Secretariat of the HTP Supervisory Board. You must also provide copies of these employees’ foreign passports. The secretariat submits these lists to the State Border Committee of Belarus.

Document flow when concluding contracts

A simplified procedure for registration and conclusion of transactions has been defined for HTP resident companies:
1. For HTP resident companies, there is a simplified procedure for processing documents when doing business with foreign counterparties. For example, residents can enter into contracts by exchanging electronic messages. The general procedure for doing business in Belarus assumes that the parties to the agreement sign one document. The transaction is concluded in this case, and the deal is signed.
2. Primary accounting documents (which account for the receipt and shipment of goods, works, and services in accounting) can be issued by HTP residents independently and unilaterally. General accounting rules in Belarus require that all parties to a business transaction sign primary accounting documents. 
3. HTP residents make transactions with foreign business partners without considering the state’s requirements for conducting foreign trade operations.