Real Estate for Sale in Azerbaijan

Azerbaijan is suitable for investors focused on capital preservation and stable USD-denominated income, not speculation or migration.

Azerbaijani property for sale taxation is extremely low: no purchase tax, no stamp duty, symbolic annual property tax. Holding costs are minimal, which materially improves net returns. In Baku, long-term rental yields are typically 6–9% gross (4.5–7% net), with good liquidity in central districts.

The buyer receives full ownership rights in a jurisdiction where real estate is registered in a state registry and does not depend on the developer or a management company. With a registered Çıxarış, the property can be sold, mortgaged, inherited, or rented out at any time.

The local real estate market offers rental yields of 6–9% per year, with 4.5–7% net, and solid liquidity, with an average selling period of 2–4 months.

Property tax for individuals is charged only on the area exceeding 30 square meters. Current annual rates for Azerbaijan real estate are:

• $0.24 per square meter in Baku;
• $0.18 per square meter in major cities such as Ganja and Sumgayit;
• $0.06 per square meter in the regions.

The tax is paid once a year, administered by municipalities, and penalties for late payment are minimal.

When purchasing property, one-time payments include a state registration fee of $15–30 and notary costs of $50–120 for a purchase agreement between individuals. VAT is 18% and is included in the price of new-build properties, but it is not charged as a separate payment.

Before purchasing, you must verify ownership. The property must have a valid Çıxarış, which is the state registration certificate. Buying without it is considered unlawful.

The property must not be under arrest, pledged to a bank, involved in court disputes, or included in demolition programs. These checks are done through the State Register and court databases.

You must also verify the construction permit, the commissioning act, and the developer’s registered ownership of the land plot.

Utility costs are about $0.5–0.9 per square meter per month. For a 70–80 square meter apartment, this is typically $35–70 per month. Internet and television are paid separately and add another $15–25.

In addition, there is an annual property tax for individuals, also based on the area. For a standard apartment in Baku, it is usually $18–45 per year.

Building management fees average $0.12–0.30 per square meter per month, bringing total regular expenses to roughly $60–110 per month.

Real estate is registered exclusively through the state registry via the State Service for Property Issues (Daşınmaz Əmlakın Dövlət Reyestri). After the purchase agreement is signed, the notary submits the transaction documents to the registry.

Based on these documents, ownership is registered, and a Çıxarış is issued. The state fee is $15–30, depending on the type and size of the property.

There is no formal citizenship-by-investment program in Azerbaijan. However, investing from $59,000 in the Azerbaijan real estate market or $295,000 in the economy allows an investor to apply for a residence permit.

To obtain citizenship through naturalization, at least five years of residence in Azerbaijan with permanent residence status is required, along with compliance with other migration requirements, including no criminal record and proof of integration.

Property can be purchased remotely by issuing a power of attorney to a representative. The key requirement is that the transaction is notarized and ultimately registered in the State Registry.

For investment purposes, Baku is the main market and the most liquid in the country. Investment-attractive housing is concentrated in:

• Central districts such as Sabail, Nasimi, and Yasamal.
• White City and Bayil.
• In suburban and developing areas.

Secondary cities such as Ganja and Sumgayit are suitable for long-term rental and portfolio investments outside the capital.