Buying Property In Azerbaijan: Foreigner's Guide

Foreigners can buy property in Azerbaijan, but there are some important legal distinctions to be aware of. Under Azerbaijani law, property is divided into two categories: movable property (personal property) and immovable property (real property). Foreigners have equal rights to buy personal property and can also buy real estate, but not land. This means that foreigners can purchase houses, villas, apartments, and commercial property, but they cannot buy land. There are some ways to indirectly buy land, such as by registering a company or leasing the land. It is important to carefully navigate the legal and tax implications of these options.

Foreigners can buy houses in Azerbaijan

Foreigners have equal rights to Azerbaijani citizens when it comes to purchasing personal property. They can also buy real estate, such as a house, villa, or apartment, but there is an important exception: foreigners cannot buy land. This means that when a foreigner buys a house or other immovable property in Azerbaijan, they do not own the land it is built on. Instead, they lease the land from the original owner.

There are ways to indirectly purchase land in Azerbaijan as a foreigner. One method is by registering a company and transferring the land to that company. Another option is to obtain a 99-year lease, which is a common arrangement in other countries as well.

The process of buying property in Azerbaijan typically involves the following steps:

• Finding a suitable property, conducting a physical inspection, and agreeing on a price and terms.
• Signing a purchase agreement before a notary (this can be done via a notary-approved power of attorney, so it is not necessary to be physically present in Azerbaijan).
• During the notary deal stage, an application is made to the state registry for the property.
• Obtaining the title to the property.

It is important to note that buying property in Azerbaijan, especially newly constructed property, carries certain legal risks. Newly constructed properties may not have property documents (title documents), which can lead to issues with registration and potential fraud. Therefore, it is crucial to seek legal support to analyse the agreement and check for any legal risks.

Additionally, only citizens of Azerbaijan can purchase real estate using a loan or mortgage. Property transactions may also be subject to taxes and associated costs, but these can be reduced with proper planning and optimisation.

Foreigners cannot buy land in Azerbaijan

If you are a foreigner looking to buy property in Azerbaijan, you can follow these steps:

• Find a suitable property, conduct a physical inspection, and agree on a price and terms.
• Sign a purchase agreement before a notary. It is possible to be represented via a notary-approved power of attorney, so you do not need to be physically present in Azerbaijan.
• Along with the notary deal, apply to the state registry for the property.
• Obtain the title to the property.

It is important to note that newly constructed properties in Azerbaijan may not have property documents (title documents), which can lead to legal risks. Therefore, it is recommended to seek legal support to analyze the agreement and check for any possible fraud during the transactions.

Additionally, foreigners can indirectly buy land by registering a company. However, this comes with additional concerns, such as higher property taxes and legal risks.

Foreigners can buy property with 100% ownership rights

Foreigners can buy property in Azerbaijan, with some exceptions and restrictions. While a foreigner can buy real estate (immovable property) in Azerbaijan, they cannot purchase land. This means that foreign citizens or stateless persons can buy a house, villa, apartment, or commercial property, but not the land on which these structures are built.

When purchasing property in Azerbaijan, foreigners have the same rights as local citizens regarding personal property (movable property). Additionally, foreigners can buy real estate with 100% ownership rights, except for land. This means they have full ownership of the structures they purchase and can freely sell or dispose of the property without discrimination, just like local citizens.

The process of buying property in Azerbaijan typically involves the following steps:

• Finding a suitable property, conducting a physical inspection, and agreeing on the price and terms.
• Signing a purchase agreement before a notary (this can be done remotely via a notary-approved power of attorney).
• During the notary deal stage, applying to the state registry for the property.
• Obtaining the title to the property.

It is important to note that newly constructed properties in Azerbaijan may not have property documents (title documents). In such cases, the transaction is based on an internal agreement between the developer and the buyer, which can lead to legal risks. Therefore, it is advisable to seek legal support to analyze the agreement and check for any liens, charges, or possible fraud during the transactions.

While foreigners cannot directly purchase land in Azerbaijan, there are workarounds, such as registering a company and transferring the land ownership to that company. However, this approach may bring additional concerns, such as higher property taxes and legal risks.

In summary, foreigners can buy property in Azerbaijan with 100% ownership rights, except for land. They can enjoy similar rights as local citizens when purchasing real estate and have the freedom to sell or dispose of their properties without discrimination.

Foreigners can buy property through a company

Foreigners can buy property in Azerbaijan, but there are some important restrictions to be aware of. While a foreigner can buy real estate (immovable property), there are exceptions. Foreigners cannot buy land in Azerbaijan, which means that only Azerbaijani citizens can purchase real estate by means of a loan or mortgage.

However, foreigners can buy land indirectly by registering a company and transferring the land to that company. This method brings additional concerns, such as higher property taxes and legal risks. It is important to carefully analyse and plan for these potential issues.

Another option for foreigners looking to buy property in Azerbaijan is to hire a lawyer, who can provide guidance and assistance throughout the process. This can help ensure that all documents are in order and that the transaction is secure.

• Find a suitable property, conduct a physical inspection, and agree on the price and terms.
• Sign a purchase agreement before a notary. It is possible to be represented via a notary-approved power of attorney, so being physically present in Azerbaijan is not necessary.
• During the notary deal stage, apply to the state registry for the property.
• Obtain the title to the property.

Foreigners can buy property in Baku

If you are a foreigner looking to buy property in Baku, you have the same rights as local citizens when it comes to purchasing personal property. You can buy real estate (immovable property) in Baku, but you cannot buy land. This means that you can purchase a house, villa, apartment, commercial property, or other types of property.

There are a few things to keep in mind when buying property in Baku as a foreigner. First, it is important to hire a lawyer to help you with the process and protect your interests. Second, be cautious when buying new buildings, as some companies have been known to scam buyers. Third, property transactions may have associated taxes and costs, but these can be reduced with proper planning.

The process of buying property in Azerbaijan typically involves the following steps:

• Finding a suitable property, conducting a physical inspection, and agreeing on a price and terms.
• Signing a purchase agreement before a notary (you can be represented by a notary-approved power of attorney and do not need to be physically present in Azerbaijan).
• Applying to the state registry for the property during the notary deal stage.
• Obtaining the title to the property.

Frequently asked questions