Europe · AZN
Azerbaijan
Reviewed 2026-06-21
Top income tax
25%
Self-employed SS
Yes
VAT
18%
Capital gains
14%
Exit tax
No
Nomad visa
No
59
/ 100
Tax efficiency44
Ease to enter57
Ease to exit93
Cost of living89
Internet17
English25
Azerbaijan taxes residents on worldwide income using a progressive system, with non oil and gas private sector workers enjoying a temporary regime that exempts the first AZN 8,000 of monthly pay and applies 14 percent above it through end of 2025, while the standard schedule tops out at 25 percent. Corporate profits are taxed at a flat 20 percent and VAT is 18 percent, with no wealth, inheritance, or exit taxes and a favorable 5 percent final withholding on dividends. There is no dedicated digital nomad visa yet, though residence permits are available to entrepreneurs and investors who meet employment or capital thresholds.
Personal income tax
Income tax structureProgressive
Top income tax rate25%
Entry income tax rate14%
Top rate threshold$17,647
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate10%
Employer SS rate15%
Indirect & other taxes
VAT standard rate18%
Capital gains rate14%
Long-hold CGT exemptionYes
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency182 days
Corporate
Corporate income tax rate20%
WHT on dividends5%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index33
Internet speed84 Mbps
English proficiencyLow
Civil liberties10
Sources
- PwC Worldwide Tax Summaries — Azerbaijan Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — Azerbaijan Individual: Other taxes (social security, VAT)
- PwC Worldwide Tax Summaries — Azerbaijan Corporate: Taxes on corporate income
- PwC Worldwide Tax Summaries — Azerbaijan Individual: Residence
- State Migration Service of Azerbaijan — Temporary residence permit (entrepreneurship/investment)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.