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The Azerbaijani government’s Ministry of Taxes has detailed information on its website, and the office is located in Baku at 16 Landau Küçəsi, Baku. 

Personal income tax rates range from 12% to 35%. Specifics are below:

  • 14% tax is paid for monthly taxable income up to 2,500 AZN
  • 350 AZN + 25% tax is paid for monthly income exceeding 2,500 AZN
  • 14% tax is paid if annual taxable income is up to 30,000 AZN
  • 4,200 AZN + 25% tax is paid if the annual taxable income exceeds 30,000 AZN

Income tax is calculated by a person’s employer and deducted from pay every month. Persons residing in Azerbaijan for more than 182 days during a calendar year are considered resident for tax purposes, unless exempted as in the government list linked above.

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Work permits are initially issued for one year, or if the contract of employment is less than a year, the permit will run accordingly. Validity of the work permit can be extended, for not more than one year each time. Azerbaijan is not hugely strict with work permits as it recognizes the need for expats working in Baku to continue development. 


Local Economy

Baku is the economic center not only of Azerbaijan but of the Southern Caucuses region, too. The oil and petroleum industry is the driving force behind Baku’s economy, and, being a major port, exported goods are a significant part of the city’s commercial activity, including oil and gas, machinery, cotton and foodstuffs. 

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