Gift Agreements in Azerbaijan 2026: Gifting an Apartment, Notarisation, Revocation and Tax

Short answer: Under a gift agreement the donor transfers property to the donee for nothing in return. The contract is concluded when the donee accepts the gift (Civil Code, Article 666.1). A gift of an apartment, house or land, and any promise of a future gift, must be notarised (Articles 668.1.1 and 668.1.5). Ownership passes only when the transfer is entered in the state real estate registry (Article 178.1). A gift from a family member is fully exempt from income tax. Gifts from other people are exempt up to AZN 2,500 per year (Tax Code, Article 102.1.3).

What a gift agreement is and who can make one

A gift is a gratuitous contract made during the donor's lifetime. The donor enriches the donee out of the donor's own property, and the donee gives nothing in return (Article 666.1). A gift can be a thing, a claim, or a release from a debt (Article 666.2). Until the donee accepts, the donor may take the gift back at any time (Article 669).

• Conditional gifts. A gift can be made subject to a condition or obligation, for example a right for the parents to live in the apartment for life. If the obligation is not performed, the donor and the donor's heirs may sue (Articles 670.1 and 670.3).
• Reversion clause. The contract may provide that the property returns to the donor if the donee dies first (Article 671).
• Spouses' joint property. One person cannot alone give away property that is jointly owned or restricted by inheritance rights (Article 667.1). Disposing of joint real estate requires the other spouse's notarised consent (Law on Notariat, Article 46).
• Persons lacking capacity and minors. A gift out of such a person's property may only be made in line with guardianship rules (Article 667.2). A guardian cannot give away the ward's property without prior permission from the guardianship authority (Article 36.2). Giving a gift to the ward is not prohibited (Article 36.3). A minor may accept a gift, but the legal representative can forbid it (Article 667.3).

The Azerbaijani Civil Code does not contain the special bans found in some other countries' codes. Its gift chapter has no specific prohibition on gifts to teachers, doctors or social-care staff, or on gifts between commercial companies. Gifts to civil servants are restricted separately by anti-corruption and ethics rules.

Form: when a notary is required

A verbal "I will give you the apartment" creates no legal obligation. A notarised promise is binding, although the donor may withdraw from it in certain cases (see below).

Gifting an apartment in practice: notary and registry

A contract disposing of real estate is notarised. The notary checks the donor's right to dispose and the legality of the contract (Article 144.1). After certification the contract is sent electronically to the registry and serves as the application for registration (Article 144.3). Ownership passes to the donee when the registration is made (Article 178.1). The procedure is very similar to a sale; see our guide to buying real estate in Azerbaijan for the detailed steps.

Documents listed by ASAN service:

1. The title document (registry extract).
2. Information on whether the property is encumbered or under arrest.
3. If the donor is married, the marriage certificate and the spouse's notarised consent to the gift.
4. Notarised consent of all adult family members registered at the residential property regarding their residence registration.
5. Documents proving kinship, if the reduced fee is claimed.

The parties may attend in person or act through a representative under a notarised power of attorney; see our article on powers of attorney. According to ASAN service, the state fee is AZN 25 where the property goes to a spouse, child, parent, grandparent, grandchild or sibling. For other recipients it is AZN 280 in Baku, AZN 196 in Sumgayit, Ganja and Absheron, and AZN 140 elsewhere, plus a service charge.

Can the donor take the gift back?

A completed gift cannot be reversed simply because the donor has changed their mind. The Code allows withdrawal only on specific grounds (Article 673.1):

• the donee has committed a serious crime against the donor or a close relative of the donor;
• the donee has grossly breached family-law duties owed to the donor or a close relative;
• the donee unjustifiably fails to perform an obligation attached to the gift.

A promise of a gift can also be revoked if the donor's finances have changed so much that the gift would become an extreme burden, or if new family obligations have arisen (Article 673.2). The withdrawal notice must reach the donee within one year from the day the donor learned of the ground. If the donor dies within that year, the right passes to the heirs for the rest of the period. The heirs may also withdraw if the donee intentionally killed the donor or prevented the withdrawal (Article 673.3). After withdrawal the donee must return the gift if it is still in the donee's ownership (Article 673.4). The gift lapses automatically if the promised item is lost or destroyed, or if insolvency proceedings are opened against the donor's assets (Article 674.1).

Tax: is a gift subject to income tax?

Under the Tax Code, gifts, financial aid and inheritances received during the year are exempt from income tax within set limits (Article 102.1.3). According to the State Tax Service's 2024 guidance:

• Gifts from family members are exempt from income tax in full, whatever the value of the apartment.
• Gifts from others are exempt up to AZN 2,500 per calendar year (AZN 1,000 before 2024). The excess may be taxed as non-business income (14% on annual income), with a return due by 31 March of the following year.

"Family member" is defined broadly for tax purposes (Article 13.2.7). It includes spouses, parents, children, grandparents, grandchildren, siblings and their children, and the spouse's parents and siblings.

Gift, inheritance or sale: which fits when

A gift suits a transfer made during the owner's lifetime that should be free of later disputes, but the donor loses control of the property. A will keeps control until death. Note that if the deceased gave property to someone within two years before death, an heir entitled to a compulsory share may claim a top-up out of that gift (Article 1200). See our article on inheritance in Azerbaijan. Calling a transaction a "gift" when money actually changes hands is risky: it may later be challenged as a sham concealing another transaction.

Common mistakes and a checklist

Typical mistakes include giving away joint marital property without the spouse's consent, promising an apartment by a private receipt instead of before a notary, not completing registration, and not writing the parents' right of residence into the contract.

1. Check the registry extract, encumbrances and any arrest.
2. Establish whether the property was acquired during marriage and obtain notarised consent if needed.
3. If a minor is among the owners, obtain the guardianship authority's permission.
4. Write any conditions (right of residence, reversion) into the contract.
5. Prepare kinship documents: the reduced fee and the tax exemption depend on them.
6. After registration, obtain a new extract in the donee's name.
7. For gifts outside the family, check whether a tax return is required.

Frequently asked questions

Can a gifted apartment be taken back?
Only on the statutory grounds: a serious crime, a gross breach of family duties or failure to perform an obligation. The withdrawal must be notified within one year of learning of the ground (Article 673).

Is tax due on an apartment received from a parent?
No. A gift from a family member is exempt from income tax in full (Tax Code, Article 102.1.3).

Is an apartment received as a gift during marriage divided on divorce?
Property received as a gift is the recipient's separate property (Article 225.2). It may be treated as joint property if its value was significantly increased with joint funds (Article 225.4).

Can a promise of a gift be made before a notary?
Yes; a promise is valid only in notarised form (Article 668.1.5). If the donor's situation seriously deteriorates, the donor may withdraw from the promise (Article 673.2).

Can an apartment be given to a minor child?
Yes. Giving a gift to a minor is not prohibited, and the legal representative handles the paperwork. Giving away a minor's property, however, requires the guardianship authority's permission (Articles 36.2–36.3 and 667).

How we can help

Affidacons drafts gift agreements tailored to the parties' family and property situation, covering conditions, rights of residence, reversion clauses, spousal consent and tax consequences. We represent clients in court in disputes over withdrawal of gifts, invalidity of gift agreements and compulsory shares. See our litigation and legal representation service or contact us.

This article is general information and does not constitute legal advice. It is based on Articles 36, 144, 178, 225, 666–674 and 1200 of the Civil Code of the Republic of Azerbaijan, Article 46 of the Law on Notariat, Articles 13.2.7 and 102.1.3 of the Tax Code, and official guidance from the State Tax Service and ASAN service (November 2026); legislation may change. Obtain advice on your specific circumstances before acting.