Please note that foreigners enjoy the same rights with the Azerbaijani citizens when it comes to buying a real estate and owning a real estate. But there is an exception when it comes to buying a land plot. Although foreigners can own a real estate of any type (flats, apartments, condos, commercial real estate etc.), they cannot buy a land plot. Property right on estates transferred to foreign legal and individual persons by heir, gift and mortgage deals is evicted during one year. If foreign legal and individual persons do not evict their property right on estate, relevant executive authority or municipality purchases estate with regard to the current legislation.
However, the law does not prohibit the foreigners to lease land plots for a long-term period (e.g. up to 99 years). Besides that, Azerbaijani legal entities which are owned by foreign natural persons or legal entities, may also purchase or own land plots. This structure allows a foreign investor to effectively own and exercise ownership rights over land plots.
In the other hand foreign investors may take part in privatization of state property as buyers.
Further, please note that ownership of a real estate (excluding land plots) with a value of 100.000 AZN or more allows the owner and his immediate family members that are under 18, to obtain a temporary residence permit.
It should be stated that the tax legislation of Azerbaijan makes purchase even more beneficial for foreign buyers. In accordance with the tax legislation the person (and foreigner), acquiring a dwelling (house, apartment or a room in a communal apartment) does not pay any tax. However, if the foreigner in the result of conclusion the agreement for purchase and sale of real estate becomes the owner of the building, non-residential premises, then he must pay a property tax. A property tax for foregners is paid annually as per square meter of the property and can be considered very low or intangible in comparison to other countries.