Investing in Syrian tech: the rules as they stand
100% foreign ownership in software. Telecom capped at 49%. Tax holidays up to ten years. And a FATF grey-listing you must take seriously. The current rulebook, summarized.
Towfiqu barbhuiya / UnsplashDisclaimer first: we are a product studio, not a law firm. This is the orientation we wish we'd had — verify everything with counsel before moving money.
Ownership
Under Investment Law 18 of 2021, foreign investors can own 100% of companies in software development, IT services, web and app development, e-commerce, and tech consulting — no joint-venture requirement. Telecommunications is the exception: foreign ownership is capped at 49%, so mobile networks, major ISPs, and telecom infrastructure require a Syrian partner.
Incentives
- Technology projects qualify for income tax exemptions in the 50–75% range.
- Projects in designated development areas can receive a 75% income tax reduction for ten years.
- Complete exemption from customs duties on equipment, machinery, and production inputs.
The compliance reality
Syria remains on the FATF grey list, which means every cross-border banking relationship involves enhanced due diligence. Targeted sanctions on Assad-era figures, human rights abusers, and trafficking networks remain in force in the US, EU, and UK — so counterparty screening is not optional. And the EU's arms embargo plus restrictions on internal-repression technology still apply to specific hardware categories.
How we read it
The structure favors exactly the kind of business software people build: small, talent-heavy, capital-light companies that export services. Full ownership, meaningful tax relief, and a cost base that makes senior engineering economical. The friction is concentrated in banking and compliance — which is why the payments reconstruction covered elsewhere in this series matters so much.