According to the tax service, a resident's foreign income is taxed at the rates of art. 101.2 of the Tax Code, stated as 14% in a reply of February 3, 2026; the tax is reduced by tax withheld abroad (art. 127). Gains on selling shares are taxed at 14% on the difference between sale and purchase price, with a return due by March 31.
What this changes in the calculation
For an Azerbaijani resident with an apartment in Georgia, rent and sale gains are, per the tax service's replies, taxed at 14% with credit for Georgian tax; there is no direct guidance on property abroad.
From January 1, 2026 an individual's income from renting out housing is taxed at 10% at source (Tax Code art. 124.1), down from 14%. If the tenant is not a withholding agent, the landlord pays the 10% and files a return. In the tax service's example, rent of AZN 500 a month gives AZN 600 of tax a year.
What this changes in the calculation
For an apartment in Azerbaijan, tax on rent goes from 14% to 10% of gross income.
An individual seller pays a simplified tax of AZN 15 per m² adjusted by a zonal coefficient, withheld by the notary (Tax Code art. 218-1). The sale is exempt if the seller was registered in the apartment for at least 3 years (from January 1, 2020, previously 5 years). 30 m² are exempt regardless of the period.
What this changes in the calculation
For an apartment in Azerbaijan, the sale tax is based on floor area, not on the gain.
The treaty was signed in Baku on February 18, 1997, entered into force on December 1, 1997 and applies from January 1, 1998. Rental income and gains on selling property may be taxed by the country where the apartment is located (arts. 6 and 13); interest and dividends are taxed at no more than 10% in the source country. Azerbaijan reduces its tax by the tax paid in Georgia, but by no more than the Azerbaijani tax on the same income (art. 23).
What this changes in the calculation
For an Azerbaijani resident with an apartment in Georgia, the Georgian 5% on rent is credited against Azerbaijani tax; there is no double tax beyond the higher of the two rates.
A general exemption for deposit interest applied from February 1, 2016 to February 1, 2023. Under a law of December 2023, interest on manat deposits up to AZN 200 a month in each bank is exempt indefinitely; a manat deposit of 18 months or longer is fully exempt for 3 years. Other interest, including on foreign currency deposits, is taxed at 10% at source.
What this changes in the calculation
For an Azerbaijani resident with a deposit in Azerbaijan: a manat deposit within the exemption is taxed at 0, a foreign currency deposit at 10%.
An Azerbaijani tax resident (more than 182 days a year) pays tax on worldwide income. Foreign income on which no tax was withheld in Azerbaijan is reported in a return by March 31 of the following year; the tax service receives data on foreign income and accounts through automatic exchange. Foreign tax is credited up to the Azerbaijani tax on that income; the excess is not carried forward.
What this changes in the calculation
Income from an apartment in Georgia must be reported in Azerbaijan; Georgian tax reduces the Azerbaijani tax.
Under Central Bank Rules No. 45/1 an individual may transfer up to USD 20,000 abroad without supporting documents (per calendar month in the rules, per day in a 2023 press release); payments for property abroad require documents. Cash taken out: up to USD 10,000 oral declaration, USD 10,000 to 50,000 written declaration with proof of import, above that only by bank transfer.
What this changes in the calculation
No change to the rates; an apartment in Georgia is paid for by transfer with the contract.
Individuals' property tax is based on floor area: Baku AZN 0.4 per m² (with a coefficient of 0.7 to 1.5), Ganja, Sumgait, Khirdalan and Absheron 0.3, other cities 0.2, towns and villages 0.1. The first 30 m² of housing are exempt; payment is in two parts by August 15 and November 15.
What this changes in the calculation
An 80 m² apartment in Baku: about AZN 20 of tax a year before the coefficient.
Dividends, interest and discount on securities publicly placed on a regulated market are exempt for 5 years from February 1, 2023. Dividends of Azerbaijani companies are taxed at a final 5% at source; dividends of foreign companies are taxed at 5% instead of 14% from January 1, 2026, reported by the resident.
What this changes in the calculation
Dividends from a Georgian company for an Azerbaijani resident: 5% in Georgia, 5% in Azerbaijan with credit for the Georgian tax.
The package was submitted together with the 2027 budget and has been discussed in committee since November 5, 2026. For individuals: rent in Azerbaijan declared with expenses deducted instead of withholding at source, dividends of agricultural company founders 5%, late payment interest 0.05% a day instead of 0.1%. Publications show no changes to deposit interest, foreign income or tax credits; the bill number and reading dates were not found.