Currency Regulation and Repatriation of Profit

Foreign exchange

Azerbaijan's currency control legislation distinguishes between "residents" and "non-residents", with more stringent requirements currently applying to residents. The definition of "resident" includes private individuals having a permanent place of residence in Azerbaijan and legal entities established in accordance with Azerbaijani legislation.

Currency operations involving the movement of capital must be performed in a manner approved by the CBA. No procedure, however, has been established by the CBA on this point and, in effect, no licensing of the currency operations involving the movement of capital is required at present.

Import/Export of Foreign Currency in cash by Individuals. Resident and non-resident individuals are treated equally with regard to the import/export of foreign currency in cash. There are no limitations on the amount of foreign currency an individual may bring into Azerbaijan, provided that such amount is declared to the Azerbaijani customs authorities. Azerbaijani customs authorities are required to issue a certificate to an individual importing more than USD 10,000 or its equivalent into Azerbaijan.

Residents can export hard currency in the amount up to the equivalent of USD 10,000 free of tax without any documentation except the tax declaration. Non-residents, however, are required to submit some documents. Residents must pay a 1% fee for the amount from USD 1,000 up to USD 10,000. In case the USD 10,000 threshold is exceeded, supporting documentation must be provided in any event.

 Fore more information please see our "Doing Business in Azerbaijan" publication