Azerbaijan capital gains tax calculator

An individual's gain on selling an asset outside business activity is non-business income taxed at a flat 14% (Tax Code article 101.2). There is no progressive scale for a disposal gain, and nothing stacks on other income. Business activity is a separate track: an individual entrepreneur's income is taxed at 20% (article 101.3).

Article 102.1.27 exempts 50% of the income from disposing of a participatory interest or a share that you have owned for at least 3 years. The other 50% is taxed at 14%, so a qualifying disposal bears 7% of the gain. The test runs per parcel, so two lots of the same holding bought at different times can be taxed differently.

No. Income from realizing ordinary movable tangible assets is exempt (article 102.1.7). The exemption does not reach precious stones and metals, products made from them, fine art, antiques, or property used in entrepreneurial activity; a gain on those runs at 14%.

A private property sale is not charged a tax on the seller's gain. The notary withholds the simplified tax, computed on area and location: 15 manats per square metre times the zone coefficient, times 1.5 for non-residential premises (articles 150.1.9 and 220.8). A residence held 3 years or more is exempt (articles 102.1.9 and 150.1.9). This calculator's property card is informational and does not compute that charge.

Azerbaijan taxes an individual's gains from realizing assets outside entrepreneurial activity as non-business income. Tax Code article 99.3.6 brings gains from the sale of assets not used for entrepreneurial activity into non-business income, and article 99.3.8 covers any other increase in the net value of the taxpayer's assets. Article 101.2 taxes ANNUAL income from non-business activity at a flat 14 percent: the two-band table (14 percent to 30,000 manats, then 25 percent) shown in the older English translation hosted by the State Tax Service was replaced by the 22 December 2018 law 1356-VQD, in force from 1 January 2019, so every year of this record carries the flat 14 percent. Article 101.3 taxes individuals carrying on business activity without a legal entity at 20 percent, and the employment schedule of article 101.1 is a separate regime that never applies to a disposal gain. Sources: https://www.taxes.gov.az/az/page/ar-vergi-mecellesi and https://e-qanun.az/framework/46948

Shares and participatory interests: article 102.1.27 exempts 50 percent of the income a taxpayer derives from disposing of a participatory interest (istirak payi) or a share (sehm) that the taxpayer has owned for at least 3 years. The other 50 percent is non-business income taxed at the flat 14 percent, so a qualifying disposal bears 7 percent of the gain. The edge is the statute's own: at least 3 years. No general holding-period exemption for listed shares was identified, and no reduced rate for gains on securities: the 3-year rule is a half exemption, not a zero rate. Source: https://www.taxes.gov.az/az/page/ar-vergi-mecellesi

Funds and ETFs: no separate fund or ETF rate was identified. A disposal gain runs as non-business asset income at 14 percent unless the instrument falls within a specific exemption, and the 3-year half exemption of article 102.1.27 reaches an instrument only if it is a share or participatory interest the taxpayer has owned for at least 3 years. The legal classification of a particular fund or ETF should be checked. Source: https://www.taxes.gov.az/az/page/ar-vergi-mecellesi

Crypto: the State Tax Service's 19 August 2025 guidance treats the realized increase in value of digital assets as non-business income under articles 99.3.8 and 101.2, at 14 percent. The taxable amount is the increase in price between the acquisition of the crypto asset and the date it is transferred; income is recognized on the date of transfer. No crypto holding-period exemption was identified, and the guidance states no crypto-specific loss rule. A person trading as a business falls under the business rules instead. Sources: https://www.taxes.gov.az/az/post/4261 and https://www.taxes.gov.az/az/page/ar-vergi-mecellesi

Real property: a private sale of immovable property is not charged a net-gain income tax on the seller's difference. It is a simplified-tax transaction: under article 150.1.9 the notary withholds the tax, computed per article 220.8 at 15 manats per square metre of the taxable object multiplied by the zone coefficient (Baku zones 4.0 / 3.0 / 2.2 / 1.8 / 1.5 / 1.2 under article 220.8.1; Ganja, Sumgayit and Khirdalan 1.5; Absheron settlements and Shirvan, Mingachevir, Nakhchivan, Lankaran, Yevlakh, Shaki and Naftalan 1.2; other districts 0.3), and multiplied by a further 1.5 for non-residential premises under article 220.8-1; land is 0.5 manats per square metre with no zone coefficient for agricultural land. Article 102.1.9 exempts the sale of immovable property that was the taxpayer's residence for at least 3 years, and article 150.1.9 excludes from notary withholding a residence in which the individual has been registered for at least 3 calendar years. This calculator's property card is informational: it does not compute the area-based notary tax. Sources: https://www.taxes.gov.az/az/page/ar-vergi-mecellesi and https://www.taxes.gov.az/uploads/2017/PV_new/en/Dasinmaz_Emlak_Vergisi_en.pdf

Other valuables: article 102.1.7 exempts income from the realization of movable tangible assets. The exemption does not reach precious stones and metals, products made from them, works of fine art, antiques, or property used (or previously used) in the taxpayer's entrepreneurial activity; a gain on those runs at 14 percent. The exemption is category-based, with no holding-period test. Source: https://www.taxes.gov.az/az/page/ar-vergi-mecellesi

Losses: article 120 applies to an individual's realization of property. A loss from realizing property (other than property used in entrepreneurial activity, or property whose realization income is exempt) is offset against income from realizing such property. If it cannot be offset in the same year, the loss is carried into the following period and offset against income from realizing such property. The current consolidated text states no year limit on the carry; the older English translation hosted by the State Tax Service said 'up to three years', and this record follows the current text. The pool excludes exempt property (an ordinary movable's loss carries nothing) and never offsets employment income. Source: https://www.taxes.gov.az/az/page/ar-vergi-mecellesi

Filing and payment: article 149.2 requires a resident individual with income for which no withholding applies (which includes an investment disposal gain) to file the annual income-tax return no later than 31 March of the year following the accounting year. The State Tax Service's crypto guidance says the same: the individual obtains a taxpayer identification number (VOEN) and files and pays by 31 March. Sources: https://www.taxes.gov.az/az/page/ar-vergi-mecellesi and https://www.taxes.gov.az/az/post/4261

Correction recorded during the build: the 2016 English Tax Code PDF hosted by the State Tax Service still prints a two-band table for article 101.2 (up to 30,000 manats at 14 percent, then 4,200 manats plus 25 percent) and a three-year limit in article 120. The consolidated Azerbaijani text retrieved on 19 September 2026 from the official legal database (linked from the State Tax Service's Tax Code page) carries the flat 14 percent in article 101.2 and no year limit in article 120, and controls. The stale translation's older tables are not used. Sources: https://e-qanun.az/framework/46948 and https://www.taxes.gov.az/az/page/ar-vergi-mecellesi