How overseas buyers buy property in Azerbaijan

What to know first

• AZN pegged to USD at ~1.70 since late 2017 — one of the region's more stable emerging-market currency pegs
• Baku's Halfmoon waterfront has become a concentrated cluster of new international-branded developments, including a BRABUS-licensed project
• Real GDP growth of 4.1% in 2024 (State Statistical Committee), non-oil sector growth outpacing oil GDP as the economy diversifies
• Foreigners can buy apartments/buildings freely — land ownership itself is restricted to citizens, with long-term leasehold (up to 99 years) instead
• Investment-linked residence permit available from AZN 100,000 property value

The general process

1. Confirm what foreigners may own in Azerbaijan and in which areas.
2. Set your budget in AZN, including taxes, fees and currency costs.
3. Shortlist areas and check the developer or seller.
4. Appoint an independent local lawyer before paying anything substantial.
5. Reserve, sign the contract, and pay through the approved channel.
6. Complete registration, and take tax advice in both countries on any rent or sale.

The exact steps and order differ by country and by project.

Financing for foreign buyers

Maximum loan to value

Limited for non-resident foreigners — mortgage access is underdeveloped compared to Gulf markets

Typical rate

CBAR refinancing rate 6.5% (as of July 2026) + bank margin

Notes

Most foreign buyers to date have purchased in cash; confirm current bank policy directly before assuming financing is available

Residency through property

Programme

Investment-based residence permit

Threshold

AZN 100,000+ property investment (temporary) / AZN 200,000+ (permanent, after 2 years residence + language requirement)

Timeframe

Renewable temporary residence; permanent residence after 2 consecutive years

Taxes and running costs

Income tax on rent

14% on rental income for non-residents

Capital gains tax

14% on net gain for non-residents

Transfer tax or fees

Stamp duty ~0.1–0.5% of transaction value

Annual property costs

Foreigners may not own the underlying land — apartments/buildings only, on leased land (up to 99 years)

Area guides in Azerbaijan