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Taxes in Azerbaijan

A guide to the 2026 rules: residency, the new salary tax scale, social insurance, profit tax, value added tax, the simplified regime and sole traders, property, double tax treaties, deadlines and penalties.

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On 1 January 2026 Azerbaijan ended a seven-year tax holiday for private-sector employees: instead of 0% on salaries up to $4,800 (8,000 manat) a month there is now a 3-10-14% scale, while profit tax and value added tax stay at 20% and 18%.

Azerbaijan tax rates in 2026 at a glance

A cheat sheet based on the current Tax Code, including the amendments of 1 January 2026.

Tax2026 rateWho pays and on what
Income tax, private non-oil sector3% / 10% / 14%Salaries: 3% up to $1,500 (2,500 manat), 10% up to $4,800 (8,000 manat), 14% above
Income tax, public and oil and gas sector14% / 25%14% on salary up to $1,500 (2,500 manat), 25% above
Other personal income14%Sale of personal assets, gifts and inheritances above the allowances
Sole trader (individual entrepreneur)20% or 2%20% of profit, or 2% of turnover under the simplified regime
Social insurance25%, 21% above $4,800 (8,000 manat)Employee 3% on the first $120 (200 manat) and 10% on the rest, employer 22% and 15%
Unemployment insurance0.5% + 0.5%Employee and employer, on the full salary
Medical insurance2% + 2%On salary up to $1,500 (2,500 manat); 0.5% + 0.5% above that in the private sector
Profit tax20%Companies and permanent establishments of non-residents
Dividends5%Final withholding at source; foreign dividends also 5%
Interest10%At source; interest on manat deposits up to $120 (200 manat) a month per bank exempt
Residential rent paid by an individual10%Down from 14% since 2026; other rent and royalties 14%
Value added tax18%Registration above $120,000 (200,000 manat) of turnover in any 12 months

The headline change in 2026 concerns salaries. From 2019 to 2025, employees of private companies outside the oil and gas sector paid no income tax on earnings up to $4,800 (8,000 manat) a month. That holiday has expired and the scale in Article 101.1-1 of the Tax Code applies, with the bottom rate legislated to rise: 3% in 2026, 5% in 2027 and 7% from 2028. A guide still promising 0% describes last year.

The rest is stable: 20% profit tax, 18% value added tax and 5% on dividends. But the cost of a salary is driven mainly by social contributions, which in the private sector are several times larger than the tax.

We will calculate online the tax on your income and show how to pay less legally.

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Compare taxes in 146 countries: relocation taxes 2026

Who counts as a tax resident of Azerbaijan

Residents are taxed on worldwide income, non-residents only on Azerbaijani-source income. The tests in Article 13.2.5 of the Tax Code are stricter than the usual calendar-year rule.

TestHow it works
More than 182 daysMore than 182 days in total in a calendar year, in one stretch or several
Public service abroadA person serving the Azerbaijani state abroad stays resident
No country reaches 182 daysResidency is decided in order: permanent home, centre of vital interests, habitual abode and, last of all, Azerbaijani citizenship
Diplomats and staff of international organisationsNot resident unless they run a business in the country
LeavingNon-resident from the last day of presence to year-end if also non-resident next year

What counts is the calendar year, not a rolling 12 months: the State Tax Service reads Article 13.2.5.1 the same way. Someone who spent 120 days in Baku in autumn 2025 and 100 days in spring 2026 is not resident by days for either 2025 or 2026: each year has fewer than 183 days. The general logic is covered in our article on the 183-day rule.

A residence permit does not by itself make you resident, and not having one does not protect you: days are what count. Legal settlement is covered on the page about residence permits in Azerbaijan. Citizenship is only the last fallback: a foreign citizen who spends more than 182 days in Azerbaijan becomes resident, and dual residency is resolved under the tax treaty.

A point for the first year: a non-resident's salary from a foreign employer is exempt under Article 102.1.2 unless paid by a permanent establishment in Azerbaijan. Until residency starts, remote work for a foreign company carries no Azerbaijani tax.

Azerbaijan tax residency rules: how to count days and confirm your status

More than 182 days in a calendar year make you a tax resident of Azerbaijan, under Article 13.2.5.1 of the Tax Code. The days need not run in a row: 120 days in spring and 70 in autumn give 190 and resident status for the whole year. Baku is easy to fall for over a weekend, but the tax office only notices day 183.

If no country reaches 182 days, the Code goes down a chain: permanent home, centre of vital interests, habitual abode and, last of all, citizenship. After you leave, you are non-resident from your last day in the country, but only if the next year is non-resident too. The calculator below counts days by calendar year.

Mistakes cost more: with equal days in two countries, the chain of tests decides, and without evidence it will be read against you. Murblz support removes these risks: we count days, gather evidence, obtain the residency certificate from the State Tax Service and apply double tax treaties. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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183-day calculator

Tax residency calculator for Azerbaijan

Enter your travel dates: the calculator shows whether you are a tax resident of Azerbaijan today and at year end, and how many days are left before the threshold.

Counting by dates needs JavaScript. Below are the same rules by country.

Personal income tax: the new private-sector scale

There are two salary scales, and the employer decides which applies: one for the oil and gas and public sector, the other for private companies without oil and gas activity.

Monthly salaryPrivate sector 2026Private sector 2027Private sector from 2028Public and oil and gas sector
Up to $1,500 (2,500 manat)3%5%7%14%
$1,500-4,800 (2,500 to 8,000 manat)75 manat + 10% above 2,500125 manat + 10% above 2,500175 manat + 10% above 2,500350 manat + 25% above 2,500
Above $4,800 (8,000 manat)625 manat + 14% above 8,000675 manat + 14% above 8,000725 manat + 14% above 8,000350 manat + 25% above 2,500

The formulas in the table are in manat. With several employers, tax is calculated separately at each. Employee contributions are not deducted: tax is charged on gross salary.

The $120 (200 manat) allowance

Under Article 102.1.6, when the salary at the main workplace is no more than $1,500 (2,500 manat) a month, 200 manat of it is tax-free. On a salary of $1,200 (2,000 manat) the 2026 tax is (2,000 - 200) x 3% = 54 manat, about $32. Above 2,500 manat the allowance disappears. War veterans and some other groups get $240 (400 manat) a month off taxable salary, families of fallen servicemen $480 (800 manat).

Other personal income

Type of incomeRateHow it is paid
Income from neither employment nor business: sale of personal assets, gifts and inheritances above the allowances14%Annual return by 31 March
Dividends from Azerbaijani companies5%At source, final
Dividends from foreign companies5%New from 2026, self-declared
Interest10%At source
Rent from a home let to an individual10%At source or by the landlord
Other rent and royalties14%At source
Lottery and betting winnings10%Net of the stake
Sole trader income20%On profit, with quarterly advances

Tax on a resident's foreign income is reduced by tax paid abroad, but the credit cannot exceed the Azerbaijani tax on the same income (Article 127).

Relief for tech specialists

Staff of companies with technology park resident status doing system integration or software development outside the park pay 5% on that salary from 1 January 2026 for seven years (Article 101.7). In 2023-2025 it was 0% up to $4,800 (8,000 manat) and 5% above.

Social contributions and take-home pay

The tax service collects contributions, and for most salaries they exceed income tax. The 2026 grid for the private non-oil sector:

ContributionEmployeeEmployer
Social insurance, first $120 (200 manat)3%22%
Social insurance, $120-4,800 (200 to 8,000 manat)10%15%
Social insurance, above $4,800 (8,000 manat) (new in 2026)10%11%
Unemployment insurance0.5%0.5%
Medical insurance, up to $1,500 (2,500 manat)2%2%
Medical insurance, above $1,500 (2,500 manat) (new in 2026)0.5%0.5%

In the public and oil and gas sector social insurance is flat, 3% plus 22% on the whole salary, and medical insurance is 2% + 2% up to $4,800 (8,000 manat) and 0.5% + 0.5% above. Contributions are due by the 15th of the next month, by bank transfer only.

Example: a private-sector salary in Baku, 2026, in manat

Monthly salary, manat1,5003,00010,000
Income tax39125905
Employee social insurance136286986
Unemployment, 0.5%7.51550
Employee medical insurance3052.587.5
Take-home pay1,287.52,521.57,971.5
Take-home pay in US dollars~$760~$1,500~$4,700
Employer contributions276.5531.51,571.5
Total cost of the employee1,776.53,531.511,571.5
Total cost in US dollars~$1,100~$2,100~$6,900

The 1,500 manat column. Income tax: (1,500 - 200) x 3% = 39. Employee social insurance: 200 x 3% + 1,300 x 10% = 136. Unemployment 7.5 and medical insurance at 2% = 30. Take-home pay is 1,287.5 manat. The employer adds 200 x 22% + 1,300 x 15% = 239, plus 7.5 for unemployment and 30 for medical insurance.

At 3,000 manat, about $1,800, the employee loses about 16% of gross pay and the employer adds roughly another 17.7% on top. For comparison, the same salary at a state or oil and gas company means 475 manat of income tax (350 + 25% of 500), 90 of social insurance, 15 for unemployment and 60 for medical insurance, leaving 2,360 manat, about $1,400.

Profit tax, dividends and company incentives

Profit tax is 20% of gross income less deductible expenses (Article 105). Losses carry forward five years. Advances are due quarterly by the 15th of the month after the quarter, the annual return by 31 March. A foreign company's permanent establishment pays 20% plus 5% on profit remitted to head office (Article 126).

Dividends bear a final 5% withholding tax (Article 122). Dividends to individual owners of a small company that is not registered for value added tax, keeps books and has turnover up to $120,000 (200,000 manat) over 12 months are exempt (Article 102.1.22-1). Companies and sole traders pay 1% property tax on the value of fixed assets (Article 198.2).

Main incentives

RegimeWhat it givesTerm
Technology park residents, including tech companies with resident status outside the park (system integration, software development)Profit exempt, tax-free dividends, 5% income tax for staff10 years from registration; 5% for employees from 2026 for seven years
Industrial and technology park residentsNo profit, property or land tax, tax-free dividends, value added tax relief on imported equipmentUp to 10 years from registration
Startups holding a startup certificateProfit from innovation activity is not taxedThree years from the certificate date
Micro-enterprises with an average of at least three staff and no social insurance arrears75% of profit exempt, an effective rate of about 5%In force; micro-enterprises also pay no property tax
Liberated territories and the Nakhchivan Autonomous RepublicNo profit, property, land, simplified or dividend tax10 years; for Nakhchivan from 1 January 2026

Horizontal monitoring arrived in 2026: medium and large companies with automated accounting and internal controls can apply and avoid field and desk audits for covered periods, except on transfer pricing and foreign income. Deviations found cost 25% instead of 50%.

You will need a business bank account in Azerbaijan, and our company registration section helps pick a jurisdiction.

VAT: 18% and a 200,000 manat threshold

There is one value added tax rate, 18% on supplies and imports (Article 173), and no reduced rates.

TransactionTreatment
Most goods and services, imports18%
Exports of goods and services, international and transit transport0%
Supplies to duty-free shops, including locally made excise goods0% from 2026
Financial services, dealings in shares and securitiesExempt
Wholesale and retail sale of agricultural productsValue added tax only on the trade margin, from 2022 for five years

Who must register

Registration is mandatory once turnover in any rolling 12-month period exceeds $120,000 (200,000 manat), within 10 days from the 1st of the next month. A single deal above 200,000 manat requires registration before the deal. Developers and excise producers register on day one. Voluntary registration is always possible.

From 2026, retail sales and services to the public paid by card through a POS terminal count towards the threshold at 50% (Article 155.1-1). For a business that takes only card payments, the threshold has effectively doubled to $240,000 (400,000 manat).

Foreign digital services

Non-residents selling electronic services to individuals in Azerbaijan must register electronically within 30 days after annual turnover exceeds $10,000 (Article 33.8-1 as amended in February 2026); below that it is voluntary. Consulting, legal, financial, accounting, design and engineering services by email and live online training are not covered.

Returns and payments are monthly, by the 20th. Trading without mandatory registration costs 50% of all value added tax due for that period (Article 58.4). Shoppers can reclaim part of the tax on receipts through the state value added tax refund programme.

Sole traders, the simplified regime, freelancers and tech workers

A sole trader chooses between simplified tax on turnover and 20% on profit. For freelancers with foreign clients, the 30% rule and the $27,000 (45,000 manat) threshold decide in practice.

Simplified tax

The rate is 2% of turnover with no deduction for expenses (Article 220.1). It is open to those not registered for value added tax with turnover up to $120,000 (200,000 manat) in any 12 consecutive months. Retail and catering above the threshold can stay at 6-8%, and since 2026 POS card payments are taxed at 6% for three years. Returns are quarterly, by the 20th.

It is closed to rent and royalty income, wholesale, financial institutions, excise producers, manufacturers with over 10 staff, owners of fixed assets above $590,000 (1 million manat), and services to businesses rather than the public. A mixed client base is allowed only while e-invoiced sales plus services invoiced to foreign companies stay within 30% of quarterly revenue; above that the right ends from the next month. For a freelancer working mostly for foreign clients it is almost always out of reach.

The general regime: 20% and the 75% relief

Sole trader income is taxed at 20% (Article 101.3). Two reliefs exempt 75% of income, which means an effective rate of about 5%:

  • for micro-entrepreneurs with an average of at least three employees over the year and no social insurance arrears (Article 102.1.30);
  • with no staffing condition, for individuals whose annual income from listed activities is no more than $27,000 (45,000 manat) (Article 102.1.30-1): software development, design and decoration, translation, advertising, research, services in science, education, culture and sport, legal, audit, accounting and financial consulting, journalism, market research, valuation, courier delivery (other than freight), tour guiding and the export of services.

Sole trader contributions from 2026

The old regional scheme ended on 1 January 2026. Social insurance is now 2% of monthly income before expenses, no less than 15% and no more than 100% of the minimum wage, i.e. $36-240 (60 to 400 manat) a month at the $240 (400 manat) minimum wage. Medical insurance adds 4% of the minimum wage, $10 (16 manat) a month.

Example: a freelance developer with foreign clients, in manat

Manat per yearIncome 36,000Income 60,000
Income from software development36,00060,000
75% relief under Article 102.1.30-127,000Not available: income above 45,000
Income tax at 20%1,80012,000
Social insurance at 2% of income7201,200
Medical insurance, 16 manat a month192192
Total tax and contributions2,71213,392
Total in US dollars~$1,600~$7,900
Burden as a share of income7.5%22.3%

Expenses are ignored; documented expenses reduce the income tax base. The lesson is on the right: $27,000 (45,000 manat) is a cliff, and one extra manat removes the relief entirely, not just on the excess.

Tech companies

For software teams, technology park resident status (see the company section) is the strongest option; under the Social Insurance Law, from 2023 for ten years staff who are Azerbaijani citizens can choose to pay social insurance on four minimum wages, while foreign and stateless staff hired for this work are outside mandatory social insurance.

Digital nomads and expats

There is no special regime for remote workers. Before residency, foreign-employer salary is untaxed; after it, worldwide income is taxed. Which scale applies to a resident's salary from a foreign company not registered in Azerbaijan is not stated in the code, so the question is settled in advance with a ruling from the tax service: ask an expert.

Property, land, cars, inheritance, capital gains and crypto

Property taxes on individuals are local and very low. What costs money is selling before the three-year mark.

Property tax on individuals

Where the building isAnnual rate per m²
Baku0.4 manat, multiplied by a zone coefficient from 0.7 to 1.5
Ganja, Sumgait, Absheron district0.3 manat
Other cities and district centres0.2 manat
Towns and villages under district jurisdiction0.1 manat

For homes, only the floor area above 30 m² is taxed (Article 198.1.1). A 100 m² flat in Baku: (100 - 30) x 0.4 = 28 manat, or 19.6 to 42 manat a year once the zone coefficient is applied. Non-resident owners pay too. The municipality sends the notice by 1 August; the tax is paid in halves by 15 August and 15 November. Pensioners get 30 manat off unless the home is let.

Land tax

For residential, household and garden plots the rate is per 100 m²: 0.6 manat in Baku (1.2 manat on the part above 10,000 m²), 0.5 in Ganja, Sumgait, Khirdalan and Absheron, 0.3 in other cities and district centres, and 0.1 in villages. A 600 m² plot in Baku costs 3.6 manat a year.

Cars

There is no annual tax on a private car: among vehicles only boats and aircraft are taxed, at 0.02 manat per cm³ of engine. Road tax is built into fuel prices and rose from 0.02 to 0.07 manat per litre in 2026.

Selling property

A seller pays a simplified tax based on floor area, not price: area x zone coefficient x 15 manat. For homes the first 30 m² are exempt; commercial premises carry an extra 1.5.

ZoneCoefficient
Baku, zone 1, city centre4.0
Baku, zone 23.0
Baku, zones 3-42.2
Baku, zones 5-61.8
Baku, zones 7-91.5
Baku, zones 10-121.2
Ganja, Sumgait, Khirdalan1.5
Absheron towns and villages, Shirvan, Mingachevir, Nakhchivan, Lankaran, Yevlakh, Shaki, Naftalan1.2
Other districts, towns and villages0.3

The tax service's own example: a 120 m² flat in Baku zone 1 where the seller has been registered for less than three years. Tax is (120 - 30) x 4 x 15, that is about $3,200 (5,400 manat), regardless of the sale price. The notary withholds it within one banking day. No tax is due if the seller was registered at the flat for three calendar years, or it is their only home and they lived there three years, or on gifts and inheritance within the family. Options are in our investment property section.

Rent

From 2026, income from letting a home to an individual is taxed at 10% instead of 14% (Article 124.1). If the tenant is a private person, the landlord registers, pays and files. Commercial rent is taxed at 14%, and the simplified regime is not available for rent.

Inheritance, gifts and capital gains

There are no separate inheritance or gift taxes; they are the recipient's income. Gifts up to $1,500 (2,500 manat) and inheritances up to $12,000 (20,000 manat) a year are tax-free, and those from family members fully exempt; the rest is taxed at 14%. Individual capital gains are also taxed at 14%, with half the gain on shares held three years exempt, as is the gain on a main home held three years.

Cryptocurrency

No special regime: since May 2025 virtual assets are intangible assets under the Code, so general rules apply: 20% for companies and sole traders, other income for individuals. Our article on crypto and taxes when relocating gives the wider picture.

Non-residents, withholding tax and double tax treaties

A non-resident's Azerbaijani-source income not linked to a permanent establishment is taxed at source on the gross amount (Article 125).

Non-resident incomeWithholding rate
Dividends5%
Interest10%
Rent and royalties14%
Leasing, insurance and reinsurance4%
International telecoms and transport6%
Works, services and other Azerbaijani-source income10%
Payments to low-tax jurisdictions10%
Salary from an Azerbaijani employerIncome tax scales
Remittance of a permanent establishment's net profit5%

Double tax treaties

The tax service's official list contains 57 treaties, 56 of them in force; the treaty with Morocco was signed in 2018 but has not entered into force. A new treaty with Turkey signed on 19 February 2024 is not yet in force, so the old one, applied since 1998, governs. Treaties cover the United Arab Emirates, the United Kingdom, Germany, Switzerland, China, Japan and all former Soviet republics except Armenia; the treaty with Kyrgyzstan is new, applied from 1 January 2026. There are no treaties with the United States or Cyprus.

Maximum rates for the main partners, in alphabetical order:

Recipient's countryDividendsInterestRoyalties
Belarus15%10%10%
Georgia10%10%10%
Germany15%10%5-10%
Kazakhstan10%10%10%
Kyrgyzstan10%8%8%
Russia10%10%10%
Turkey (treaty in force)12%10%10%
Ukraine10%10%10%
United Arab Emirates10%7%5-10%
United Kingdom15%10%5-10%
Uzbekistan10%10%10%

These are treaty maximums; a lower domestic rate prevails, so treaties barely matter for dividends, where Azerbaijan's 5% is below every treaty rate. Savings come on royalties (14% down to 10% or less) and sometimes interest. A tax residence certificate must be provided in advance. Since 1 January 2025 the multilateral convention against tax base erosion and profit shifting has applied to Azerbaijan and modified some treaties. The treaty with Russia, applied since 1 January 1999, remains fully in force: Russia's 2023 suspension of treaties did not affect Azerbaijan.

To compare with the neighbours, see our pages on taxes in Kazakhstan, Georgia and Kyrgyzstan.

Reporting, deadlines and penalties

WhatDeadline
Income tax and contributions on salariesWithheld on payment; contributions by the 15th of next month; payroll return quarterly by the 20th
Value added taxReturn and payment monthly by the 20th
Simplified taxReturn and payment quarterly by the 20th
Profit taxAdvances quarterly by the 15th, annual return by 31 March
Sole trader income taxAdvances quarterly by the 15th, annual return by 31 March
Annual return for individuals with income not taxed at source or from abroadBy 31 March of the following year
Withholding tax reportWithin 20 days after the quarter
Individual property and land taxTwo instalments, by 15 August and 15 November
Simplified tax on a property saleWithheld by the notary on the day of the deal
Registration of a foreign digital service30 days after annual turnover exceeds $10,000

Penalties and interest

Understating tax, or evading it by not filing, costs 50% of the shortfall (Article 58.1), or 25% if found during horizontal monitoring (before 2026 the 25% rate applied to gaps found from the taxpayer's own electronic filings). Late payment interest runs at 0.1% of the unpaid amount per day (Article 59.1); on amounts assessed in an audit, interest is capped at one year, and after a field audit or horizontal monitoring it runs only from the assessment date (Article 59.2). Failing to register on time costs $120 (200 manat). The tax authority can assess additional tax for three years after the end of the period.

Returns are filed through an online taxpayer account that requires a mobile electronic signature. The interface is mostly in Azerbaijani, so even a small sole trader needs bookkeeping support, which Murblz specialists arrange. Companies should budget for accounting and reporting from the start.

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What this means if you are relocating

Azerbaijani rates are moderate, but the system has features worth knowing before you move.

Salary tax rises on a schedule. The 3% bottom rate becomes 5% in 2027 and 7% from 2028, on top of 10% employee social insurance.

Residents pay on worldwide income. There is no territorial or remittance basis. Foreign dividends are taxed at 5%, other foreign income at general rates with a foreign tax credit. Owning over 20% of a company in a low-tax jurisdiction on the government list can bring its income into yours (Article 128), which matters for companies in the United Arab Emirates and other low-tax places.

Few days do not mean non-resident. If no country reaches 182 days, residency can follow your home, interests and citizenship. Keep evidence of where your main home is.

Freelancer reliefs are fragile. The effective 5% for developers and consultants holds only up to $27,000 (45,000 manat) a year, and going over removes it entirely. The 2% simplified regime is almost always closed to service exporters because of the 30% rule.

Property is cheap to hold but not to flip. Sale tax depends on area and zone, not profit; three years of registration remove it.

The rules change often. A large package adopted on 9 December 2025 took effect on 1 January 2026, and more laws take effect in 2027. Check figures against the current Code.

Penalties are steep and the system is cashless. Understatement costs 50%, interest 0.1% a day, and e-invoices are mandatory. Disputes with the tax authority are handled by Murblz specialists.

Related pages: all Azerbaijan programmes and taxes by country.

The exact burden depends on your residency, income structure and chosen regime - we go through your situation on a free consultation.

FAQ

What is the income tax rate in Azerbaijan in 2026?
Private-sector employees outside oil and gas pay 3% on salary up to $1,500 (2,500 manat) a month, 10% on the slice up to $4,800 (8,000 manat) and 14% above. If the salary is no more than 2,500 manat, $120 (200 manat) of it is tax-free. In the public and oil and gas sector the rates are 14% up to 2,500 manat and 25% above. The private-sector bottom rate rises to 5% in 2027 and 7% from 2028.
What is the VAT rate in Azerbaijan?
18% on supplies and imports, with no reduced rates. Exports and international transport are zero-rated; financial services and securities deals are exempt. Registration is required once turnover exceeds $120,000 (200,000 manat) in any 12 consecutive months, and from 2026 card-paid retail through a POS terminal counts towards the threshold at only half its value.
What is the corporate tax rate in Azerbaijan?
Profit tax is 20% of the difference between income and deductible expenses. Dividends are subject to a final 5% withholding tax. The annual return is due by 31 March. Residents of technology and industrial parks, certified startups and micro-enterprises with at least three staff can use incentives.
How much tax does a sole trader pay in Azerbaijan?
Under the simplified regime, 2% of turnover if it stays within $120,000 (200,000 manat) over 12 months and the activity is eligible. Under the general regime, 20% of profit, but developers, designers, translators, consultants and service exporters with annual income up to $27,000 (45,000 manat) exempt 75% of their income, which works out at about 5%. From 2026 sole trader social insurance is 2% of income, between $36 and $240 (60 and 400 manat) a month, plus $10 (16 manat) a month of medical insurance.
Who is a tax resident of Azerbaijan?
Anyone who spends more than 182 days in total in Azerbaijan in a calendar year. Otherwise permanent home, centre of vital interests, habitual abode and, last, citizenship decide. Residents are taxed on worldwide income.
What social security contributions are paid in Azerbaijan?
In the private sector the employee pays 3% on the first $120 (200 manat) and 10% on the rest, and the employer 22% and 15%; from 2026 the part of the salary above $4,800 (8,000 manat) carries 10% and 11%. Unemployment insurance is 0.5% from each side. Medical insurance is 2% plus 2% on salary up to $1,500 (2,500 manat) and 0.5% each on the part above that.
Does Azerbaijan have double tax treaties?
Yes, 56 are in force, including with the United Arab Emirates, the United Kingdom, Germany, Switzerland, China, Japan and all former Soviet republics except Armenia. Treaty maximums for dividends are 10-15%, but the domestic dividend rate is lower, at 5%, so the savings come mainly on royalties and interest.
How much is property tax in Azerbaijan?
Individuals pay 0.1 to 0.4 manat per square metre of building a year; for homes only the area above 30 m² is taxed, and in Baku the rate is multiplied by a zone coefficient of 0.7 to 1.5. On a sale, a simplified tax of area x zone coefficient x 15 manat is due unless the seller was registered at or lived in the flat for three years.

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