Azerbaijan cuts rental income tax for individuals to 10%

Income earned from renting out residential premises owned by individuals to other individuals (excluding hotels and hotel-type accommodation facilities) will be subject to a 10% tax withheld at the source of payment.

This is reflected in amendments to the Tax Code approved by President Ilham Aliyev.

Thus, while current legislation provided for a 14% tax on income earned by individuals from renting out housing, the new amendments reduce this rate to 10%.

If the rent is paid by an individual who is not registered as a taxpayer, the lessor himself or a tax agent appointed by him will pay the tax at a rate of 10% in accordance with this provision, register with the tax authorities, and submit a tax declaration.