Rental tax in Azerbaijan: simplified regime for a dacha 2026

2026-09-03 · 4 min read · MARDECO

If you rent out a dacha, you pay 14% or 2%. Long-term and Airbnb use different regimes. The legal 2026 scheme and practical steps.

1. Two main regimes

Two legal paths: 1) Individual — 14% of rental income, annual declaration (March); 2) Simplified entrepreneur (IP) — 2% of turnover, registration 10-15 days, quarterly declaration. For a dacha the second option is 5-7× cheaper.

2. Registering as simplified

Steps: 1) e-taxes.gov.az → new entrepreneur; 2) «rental services» code 68.20; 3) open a business bank account (usually free); 4) no cash register needed (bank only); 5) quarterly online report. Cost: registration free, account 0-40 AZN/mo, accountant 30-80 AZN/mo.

3. Airbnb and short-let

For Airbnb/short-let: 1) «tourist rental» status (since 2024), 2% tax on gross; 2) Airbnb commission (14-17%) is an expense, not taxable; 3) up to 90 days/year — simplified; longer — needs full IP.

4. Real calculation

600,000 AZN villa, 45,000 AZN annual gross: Individual — 6,300 AZN tax. Simplified IP — 900 AZN tax + 480 AZN accountant = 1,380. Savings ~4,920 AZN/year. Over 5 years — ~25,000 AZN.

Rental tax — on 45,000 AZN income

Rental tax is a legally optimisable line item. IP status doesn't turn a dacha into a business — it's a tax regime. The critical point is filing on time (by the 15th after the quarter ends).

Four steps before renting out

• Regime choice — do the math (over 500 AZN/mo = IP).
• Bank account — all income through the bank.
• E-contract with tenant.
• Accountant — small business 30-80 AZN/mo.

See also: Airbnb in Mardakan, villa as investment, summer rental.