How is crypto taxed in Azerbaijan?
Crypto gains in Azerbaijan are taxed under the tax code at 14% for individuals and 20% profit tax for companies, and crypto is outside VAT.
Crypto is taxed in Azerbaijan under the general tax code as of October 2026, even though there is still no dedicated crypto law. Individuals pay 14% on gains, companies pay 20% profit tax, and VAT does not apply to virtual assets. A central bank draft law on crypto markets may add new rules for service providers.
What is the crypto tax in Azerbaijan for individuals?
It is 14%. Article 99.3.8 of the tax code treats increases in the value of a person's assets, other than salary, as non-entrepreneurial income, and Article 101.2 taxes that income at 14% a year, according to Caspian Legal Center and Tech.az. Caspian Legal Center says the income arises when the asset is disposed of. Tech.az described the taxable amount as the rise in the crypto's price between purchase and the reporting date.
Tech.az also reported in 2025 that individuals with crypto income must register with the tax authorities and get a taxpayer identification number. For working out the gain, see what is crypto cost basis.
How do you report crypto tax in Azerbaijan?
Individuals file an Income Tax Declaration and pay the tax by March 31 of the year after the income was earned, according to both sources. Neither mentions a minimum threshold. Keeping records of each purchase and sale helps, and how to download your crypto transaction history explains how to get them from an exchange.
Some general exemptions exist for other assets. PwC lists a 50% exemption on gains from shares held at least three years and an exemption for sales of movable tangible property, but crypto is not tangible property, and none of the sources apply these exemptions to crypto.
How are crypto companies and VAT handled?
Resident companies pay 20% profit tax on taxable profit, meaning crypto income minus deductible expenses, Caspian Legal Center says. The firm also cites Article 13.2.8 of the tax code, which states that virtual assets are not goods for VAT, so buying and selling crypto does not attract VAT. When residents send money to an e-wallet owned by a non-resident, the local payment provider withholds 10%, though a tax treaty may change that.
No law bans crypto mining, and mining income would fall under these general rules.
Is cryptocurrency in Azerbaijan legal?
Yes. Crypto is not banned, but it is not legal tender and the sector is largely unregulated. On June 29, 2026, the Central Bank of Azerbaijan said it had finished a draft law on crypto markets and expected adoption by the end of 2026, Trend reported. That is a forecast. See is crypto legal in Azerbaijan and crypto tax around the world.
Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.
This guide explains how things work. It is not financial, legal or tax advice. Last updated .