Azerbaijan Tax Rates
Azerbaijan operates a flat 14% personal income tax rate and a 20% corporate tax rate, administered by the State Tax Service. VAT is 18%. Oil and gas revenues are critical to the economy, managed through the State Oil Fund of Azerbaijan (SOFAZ). The country offers investment incentives through industrial parks and Special Economic Zones as part of its diversification strategy.
Top Income Tax Rate
14%
Corporate Tax Rate
20%
VAT / Sales Tax
18%
Capital Gains Tax
14%
Detailed Tax Information
Income Tax Brackets
Azerbaijan applies a flat 14% personal income tax on monthly income exceeding AZN 2,500. Income up to AZN 2,500 per month is exempt. Non-residents are taxed at 14% on Azerbaijan-sourced income. The flat rate replaced a progressive system in 2019.
| Income Range | Tax Rate |
|---|---|
| ₼0 – ₼3K | 0% |
| ₼3K+ | 14% |
Corporate Tax
Azerbaijan's corporate income tax rate is 20%. Oil and gas companies operating under Production Sharing Agreements (PSAs) are taxed at 25-32% depending on the agreement. Companies in industrial parks, agricultural producers, and certain IT companies benefit from reduced rates or exemptions.
Standard Rate
20%
Capital Gains Tax
Capital gains for individuals are included in taxable income at the flat 14% rate. Corporate capital gains are taxed at the standard 20% rate.
Rate
14%
VAT / Sales Tax
Azerbaijan's VAT is 18% on the supply of goods and services. Exempt supplies include financial services, insurance, education, healthcare, and certain agricultural products. The Alat Free Economic Zone is VAT-exempt.
Standard Rate
18%
Cryptocurrency Tax
Azerbaijan has not introduced specific cryptocurrency regulation or tax rules. The Central Bank of Azerbaijan has not formally addressed cryptocurrency. In the absence of specific rules, crypto income would theoretically be subject to the flat 14% income tax under general provisions.
Tax Treaties
Azerbaijan has approximately 52 double taxation agreements, supporting its position as a regional economic hub.
Treaty Network
52
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Azerbaijan
See how much you could save by moving here from your current country.
+$8K
Tax in United States
$24K
24.4% effective
Tax in Azerbaijan
$17K
16.7% effective
You Save
31.7%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
