Despite reforms in recent years, Azerbaijan’s banking system remains somewhat unstable. The Central Bank of Azerbaijan regulates all monetary policy and banks in the country. While some banks in Azerbaijan remain state-owned, a privatisation drive has been in effect in the post-Soviet era, and a number of international banks have also opened local branches.
The local currency of Azerbaijan is the Manat (AZN), which is divided into 100 qapik.
Notes: 100,000 AZN, 50,000 AZN, 10,000 AZN, 1,000 AZN, 500 AZN, 250 AZN, 100 AZN and 50 AZN.
Coins: 50 qapik, 20 qapik, 10 qapik, 5 qapik, 3 qapik and 1 qapik.
Banking in Azerbaijan
There are numerous options for expats when it comes to banking in Azerbaijan. Although there are many local banks, a number of international banks have entered the market in the post-Soviet era, and these offer the best and most reliable option for expats.
Opening a bank account in Azerbaijan
Expats are able to open a bank account in Azerbaijan, and it’s usually free to do so. Azerbaijan’s banking system is somewhat unstable and expats wanting to open a bank account in Azerbaijan should try to open one with a well-established international bank.
Credit cards in Azerbaijan
Although credit cards are becoming more popular, Azerbaijan remains mostly a cash-based society. Most major hotels and restaurants in Baku will accept international credit cards.
ATMs in Azerbaijan
ATMs are available in Baku and other major towns, and these usually accept foreign-issued bank cards. Most ATMs are inside banks, but some can be found in supermarkets and hotels.
It’s possible to pay most utility bills at an ATM in Azerbaijan.
Taxes in Azerbaijan
All residents in Azerbaijan are taxed on their worldwide income, while non-residents are taxed only on their income derived in Azerbaijan. A resident is defined as an individual who has been physically present in Azerbaijan for a period of 180 days or more in a calendar year.
The tax year in Azerbaijan runs from 1 January to 31 December.