Calculate tax on your rental income

Work out the tax due on rental income — comparing the simplified and standard regimes.
Formula: Simplified 4–8% · Standard 10% (of net income)
Letting details
Landlord status
Tax regime

Repairs, utilities, depreciation, insurance and so on.

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How is tax on rental income calculated?

Individual — simplified tax (on the rent itself):

  • Up to 2,000 AZN a month: 4%
  • Over 2,000 AZN a month: 8%
  • No expenses are deducted, but paying it is simple.

Individual — standard income tax:

  • 10% of net income (rent − expenses)
  • Allowable expenses: repairs, utilities, depreciation, insurance

Legal entity:

  • Profit tax: 20% of net income
  • VAT: 18% once annual turnover reaches 200,000 AZN

Property tax (all owners):

  • Annual, roughly 1% of the assessed value

Which regime should you pick?

  • Low expenses → simplified (4–8%)
  • High expenses (repairs, utilities) → standard (10%, but expenses come off first)

Property tax is approximated here from the annual rent — the real charge is assessed on the property's value and area. Check with the tax authority for exact figures.

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