Buying a property in Azerbaijan

Buying a property in Azerbaijan and obtaining a residence permit

Buying a property in Azerbaijan can lead to residency in this country, which has its conditions. Foreigners, who intend to receive permanent residence in Azerbaijan by investing in the real estate market of this country, must pay at least 100,000 Azerbaijani manats (59,000 US dollars) to buy a property in Azerbaijan. A significant point for foreigners when buying a property in Azerbaijan is to know that only the house is sold to a person (lords), not the land that the home is located on; the land will be rented to the foreigner (arena). The following documents are required to apply for a residence permit in Azerbaijan:
• Four photos (3 in 4)
• Copy of passport
• Copy of birth certificate
• Complete the relevant application form
• payment certificate of government expenses
• Property document purchased by a foreigner

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Topics reviewed in this article:

• Buying a property in Azerbaijan and people who are qualified to buy a property
• The legal process for buying a property in Azerbaijan
• The cost of buying and renting a property in Azerbaijan

Buying a property in Azerbaijan and people who are qualified to buy a property

Almost any foreigner who meets the following conditions can buy a property in Azerbaijan. Foreigners who have a valid temporary residence (work or student residence) in Azerbaijan can buy a property in this country. According to the law of Azerbaijan, there is no difference between foreigners and Azerbaijani citizens in purchasing a property. Foreigners can buy any property they desire, such as an apartment or a house, but they cannot buy land. Only the citizens of Azerbaijan can purchase land in this country. According to the Republic of Azerbaijan’s law, when a foreigner marries an Azerbaijani citizen, the foreigner will obtain a 50% share of the property’s land that they buy during the time they live together. However, in case of separation, the foreigner has no part in the land of that property. The experienced experts of MIE Austria are ready to give you a free telephone consultation in this regard.

The legal process for buying a property in Azerbaijan

One can buy a property in Azerbaijan through the following steps. The foreign buyer can first choose a property via the Internet or with the help of a reputable real estate company in Azerbaijan. One can minimize the possibility of fraud and abuse by concluding a contract with a legit real estate company. The seller must provide a valid document of the property which one wants to sell. Then, one must fill out a form for buying and selling the property in a notary, and this form usually includes the rules related to the sale, the rights, and obligations. Sales agreements can be in both English and Azerbaijani, but since it is an absolute entailment contract, it must be translated into Azerbaijani. Absolute entailment means that if the benefit of money is given to a person without determining the term of the deal, it will continue until the death of the owner or until one’s return. In other words, the property purchased in Azerbaijan will not be given to you completely (you can only buy the property, not the land.)

The main terms of the sale contract, price of the deal, rights of the parties, responsibilities of the parties, obligations of the seller, and buyer must be in writing and available to the parties in the contract. One of the parties must pay the government costs of the sale by agreement, but it is usually the buyers’ responsibility. When making a transaction through a notary public, the parties must prove their identity by providing their passport, identity card, and temporary residence permit, and they also need the confirmation of the real estate document to be traded. Consent must also be obtained from the people currently living in the home, and the buyer must also have a temporary residence permit in Azerbaijan. The expenses for registering a contract for the purchase and sale of a property by the notary public are about 200 manats in Baku and 80 manats in other cities of Azerbaijan. The cost of home insurance, which is mandatory, is 50 manats.

One must pay these expenses only by transferring money from a bank (not in cash.) you must pay the cost of a technical certificate depending on the apartment’s neighborhood, which is at least 80 manats. We prepared this article in the MIE Austria, and any copy of it without mentioning the source is illegal. The owner will receive the ownership certificate within 10 to 20 days. However, you can deposit more money to get these documents in a shorter time.

The cost of buying and renting a property in Azerbaijan

Buying a property in Azerbaijan’s capital, Baku, and its other cities are very different and cost different amounts depending on the environmental conditions, the year of construction, and its area. There are two types of properties in the Republic of Azerbaijan:

1. The first one is the primary property (new construction), which are built after 2001.
2. The second one is the properties that are built before 2001.

The prices of these two types of properties are different. The following table shows the purchase price of an apartment in Baku:

The following table shows the rental cost of a property in Azerbaijan:

The important thing about renting a property in Azerbaijan is that you usually do not need a prepayment. The maximum time it takes to rent a property in this country is 10 years, and the tax that the landlord has to pay is 14% of one’s rent.

In addition to the property price, there are ancillary costs when buying a property, which is as follows:

• Government expenses (200 manats in Baku and 80 manats in other cities of Azerbaijan)
• Property insurance fee (about 50 manats)
• Technical certificate fee (80 manats)
• The real estate company fee (this cost is between 2 to 4 percent of the property price depending on the type of property)

Only the Azerbaijani citizens can get a bank loan to buy a property in this country, and people who have temporary residence in this country cannot use these bank loans.