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Azerbaijan vs Germany
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡¦πŸ‡Ώ Azerbaijan
vs
πŸ‡©πŸ‡ͺ Germany
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
14–25%
Stable; post-war reconstruction boosting economy
No change
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
18%
18% maintained
No change
7–19%
Standard 19% unchanged
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20%; Karabakh reconstruction zone incentives
No change
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
Capital Gains Tax
Capital Gains Tax
20%
20% via income
No change
25%
Investment income reform proposals under review
No change
Social Security & Payroll
Social Security / Payroll
~25%
DSMF structure stable; pension adequacy reform
No change
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
State, Regional & Local Taxes

πŸ‡¦πŸ‡Ώ Azerbaijan β€” Municipal & Local Taxes

Azerbaijan's 67 districts and Baku have limited independent tax powers. The Ministry of Taxes administers all national taxes centrally. Municipalities collect land and property taxes within national frameworks. Oil and gas companies operate under Production Sharing Agreements (PSAs) with the state oil company SOCAR, which have special tax provisions. ASAN (service centres) have modernized tax filing considerably. The Strategic Road Map (2016) targets economic diversification away from oil revenue dependency.

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Azerbaijan vs Germany: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (14–25% vs 14–45%). πŸ‡¦πŸ‡Ώ Azerbaijan is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Germany has a higher consumption tax (18% vs 7–19%).

🏒 Corporate Tax: πŸ‡¦πŸ‡Ώ Azerbaijan offers a lower corporate rate (20% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¦πŸ‡Ώ Azerbaijan taxes investment gains at a lower rate (20% vs 25%), benefiting investors.

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