Can Foreigners Buy Property in Azerbaijan ?
One of the recent questions regarding buying property is whether foreigners can buy a property in Azerbaijan. Under Azerbaijani law, the property is divided into two categories: movable property (personal property) and immovable property (real property – real estate). "Can foreigners buy property in Azerbaijan ?" - a short and final answer is "Yes, foreginers can buy and own property in Azerbaijan". It must be noted that local residence is not required for such purposes. But the details and exception, as explained below, shall be kept in mind.
Any foreigner has equal rights regarding buying a personal property in Azerbaijan as local citizens. A foreigner can buy real estate (immovable property) in Azerbaijan, with the exception of land. In other words, if you a foreign citizen or stateless person, you can buy a house, villa, apartment, commercial property and other property, but not land. Therefore, if you are not planning to buy land as a foreigner, you enjoy similar rights as local citizens.
Buying a property in Azerbaijan usually covers the following processes:
Finding a proper property, physical inspection and agreement on price and terms;
Signing of a purchase agreement before notary (Note, it is possible to be represented via notary approved power of attorney, therefore, it is not necessary to be personally and physically in Azerbaijan);
Together with notary deal stage, application to state registry over the property is conducted;
Obtaining Title to the property.
Purchasing a real estate that only bears buildings (no land attached) is easy, and most of the processes are conducted at the notary.
Buying a property from newly constructed buildings (from property developers)
Newly constructed property in Azerbaijan usually does not have property documents (title document) on is based on an internal agreement with the developer and the buyer (investor). This leads to further legal risks, which required legal support for the analysis of the agreement and checking liens/charges or possible frauds during the transactions. The possible problem stems from the fact that property without title document is not registered and therefore, can not be found in the state registry of immovable property. Any operation, transaction, charge or rights of third parties are also not recorded and registered due to the same reason. Therefore, this requires special attention.
"Can foreigners buy land in Azerbaijan ?" is one of the mainly asked questions about legal regulation of property market in Azerbaijan. It must be noted that, buying a land could be possible indirectly, via registering a company. Again, this brings about additional concerns, such as property taxes (which are higher in companies), and legal risks and risks over property that must be analyzed and properly planned in a given situation.
Depending on the situation, property transactions have taxes and associated costs. But if properly planned and optimized, it is possible to reduce such taxes and costs.
A foreigner can freely dispose of or sell the property and transfer the proceeds as any local person. Azerbaijani legislation does not discriminate regarding such rights between foreigners or a local person.
For questions or legal support while purchasing real estate in Azerbaijan or real estate law consultancy, please contact us.