property tax rates for residential and nonresidential premises that are privately owned by individuals.
Other cities (except for regional subordination towns) and regional centers
Cities, towns and villages of regional subordination (except for settlements and villages of Baku, Sumgait cities and Absheron region) 0.1
* For buildings located in Baku, a coefficient of at least 0.7 and not more than 1.5 must be applied to the rate.
C. Social security
Employers engaged in the oil and gas and public sectors must make social insurance contributions at a rate of 22% of employees’ gross salary to the Social Protection Fund. In addition, 3% is withheld from the employee’s salary and is payable to the Social Protection Fund.
Social insurance contribution rates for individuals engaged in employment activities in non-oil and gas and nonpublic sectors are calculated differently from the above, effective from 1 January 2019, for a period of seven years. For individuals whose gross taxable monthly income is above AZN200, 10% of the amount exceeding AZN200 plus AZN6 should be withheld from the employee and 15% of the amount exceeding AZN200 plus AZN44 should be paid by the employer.
In addition, unemployment insurance contributions are due on the employment income of individuals holding local employment agreements. For such individuals, employers must make a payment of unemployment insurance contributions at a rate of 0.5% of employees’ gross salary, withhold 0.5% from their salary and pay the total amount (1% of gross salary) to the Unemployment Fund.
Under amendments introduced to the Law on Medical Insurance, effective from 1 January 2021, medical insurance contributions at 2% of salary up to AZN8,000 and 0.5% of the part above AZN8,000 must be withheld from salaries of employees.
D. Tax filing and payment procedures
The tax year is the calendar year.
Employers in Azerbaijan (Azerbaijani entities, joint ventures and foreign representative offices) must withhold tax from the salaries of resident and nonresident employees paid in Azerbaijan. Withholding is required regardless of whether payments are made in Azerbaijani manats or in foreign currency. The tax filing period is the calendar quarter.
Resident and nonresident individuals are not required to file tax returns if they receive income from employment and do not have income from other sources.
Citizens of countries that have a non-visa regime with Azerbaijan do not need a visa to enter Azerbaijan.
G. Work permits
Expatriates must obtain a work permit to work in Azerbaijan. Work permits are obtained through the “one window” principle or the migration online system (see Section F).
H. Family and personal considerations
Vaccinations. Under the current legislation, the COVID-19 vaccination requirement remains valid.
Driver’s permits. A foreign national may drive legally using his or her home country driver’s license if the license is legally translated into Azerbaijani and notarized. Azerbaijan has driver’s license reciprocity with other Commonwealth of Independent States (CIS) countries. A foreign national obtaining a temporary or permanent residence permit in Azerbaijan should exchange the foreign driver’s license with a national driver’s license of Azerbaijan within a period of one month.