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Rights and Privileges of Foreign Investors in Afghanistan Laws

Nowadays when investment and trade are increasingly getting professionalized, it is very important for investors to get a sense of the laws of the countries in which they intend to invest. We, in this piece, try to briefly indicate the rights, and obligations of foreign investors mandated by the Afghan trade and investment laws.

The rights and obligations of foreign investors, among other things, are expressly stated the aforementioned laws and are as follows:


  1. A hundred percent foreign ownership of foreign investment: A Foreign investor can own the entire investment with exception of land and do not need an Afghan shareholder.
  2. Non-Discrimination: As per the article sixteen of the Afghanistan Investment Law, all investors having a business purpose, technical and financial capability of doing business, are subject to the same laws and regulations regardless of whether they are owned by foreign citizens or Afghans, unless there are specialized laws adopted for special occasions.
  3. Tax Exemption: As per the Income Tax Law of Afghanistan, businesses that incur a loss in the financial year are awarded tax exemption. A business that incurred loss may transfer that loss to incoming years and may deduct it from its taxable income in accordance with the provisions of the law.
  4. Custom Duties Exemptions: As per the article eighteen of Private Investment Law of Afghanistan, products or export items, of a business montaged in Afghanistan may be awarded custom duties exemptions within the limits of the law.
  5. Access to Banking services inside and outside of Afghanistan: As per the article sixteen of Private Investment Law of Afghanistan, a registered business can open a foreign currency bank account in Afghanistan, and such business may receive their debts and credits in foreign currencies from foreign countries.
  6. The right to transfer investment and business profits: After resolving its legal obligations such as taxes, a registered business may transfer its initial investment plus the profit incurred out of Afghanistan. The business can also transfer its entire income from the sale of business and interest it receives on foreign currency loans out of Afghanistan (as per the current exchange rate).
  7. The right to execute long-term real estate lease agreements: A registered investment can make lease agreements of real estate for up to 90 years.

Masnad Legal Consultancy – Investment Law Advisory Firm in Afghanistan

About the author

Khalid Massoudi

Attorney at law and partner of Masnad Legal Consultancy - a Law Firm incorporated and provides legal services in Afghanistan, he is practicing law since 2011, and have expertise in Corporate Law, Intellectual Property Law and Tax Law of Afghanistan, he represents and provides legal advice to international corporations, entities and individuals within jurisdiction of Afghanistan."