AZE.US
Growing tourism in Azerbaijan’s regions is encouraging more homeowners to convert private residences into guest houses. However, regularly renting out a property to tourists requires more than simply posting an online listing.
Lawyer Rahim Khoyski said the process involves both business registration and compliance with tourism regulations.
A one-time rental is treated differently from regularly offering a home for daily or short-term stays. When a property is rented systematically for income, the activity is considered a business under Article 13.2.37 of Azerbaijan’s Tax Code.
The owner must register with the tax authorities as an individual entrepreneur by submitting an application at the tax office serving their place of residence.
The property itself must also be separately registered with the tax authority in the area where it is located and assigned an identification code.
Tax registration alone is not enough for a property operating as a guest house. It must also be entered into the Tourism Registry of Azerbaijan’s State Tourism Agency as an accommodation facility.
Under Cabinet of Ministers Resolution No. 86, the management of the guest house must appoint a responsible person to register visitors electronically through the Guest Registration Program when they arrive. The information must also be updated when guests leave.
The program is provided free of charge by the State Tourism Agency and is linked to the Tourism Registry.
In practice, anyone planning to turn a private home into a guest house must register as a business, place the property on the tax register, register it as a tourism accommodation facility and record arriving guests in the electronic system.
AZE.US