Cost of Living in Azerbaijan

Expats moving to Azerbaijan can enjoy a relatively low cost of living – particularly in terms of transport. Even Baku, the country's capital and business hub which draws in the most foreigners, is relatively affordable. In fact, Mercer's 2023 Cost of Living survey ranks Baku 177th out of 227 cities.

However, the cost of living in Azerbaijan is highly comparable to neighbouring countries such as Georgia. Of course, expenses will vary depending on the area where an expat lives as well as lifestyle preferences. Accommodation and other living expenses are much steeper in Baku than in other cities and areas.

Salaries tend to be relatively high. Given the conflict and tensions in the region, Azerbaijan is often considered a hardship destination, so many expats are well compensated to make the move.

Cost of accommodation in Azerbaijan

Accommodation in Azerbaijan is likely to be an expat’s greatest expense if not included as part of a corporate relocation package. Expats can expect to pay more for a furnished flat or serviced apartment in the capital city compared to unfurnished accommodation of a lower standard.

Fortunately, many companies, particularly in the energy sector, will provide accommodation or an allowance (including for utilities) for their expat staff, so it’s important to confirm this before arriving in the country.

Cost of transport in Azerbaijan

The cost of transport in Azerbaijan is very affordable thanks to the country’s relatively low fuel prices. The petrol price in Azerbaijan is much lower than the global average, and driving a car in Azerbaijan is cost-effective. For expats with children, it’s often more practical to have a private vehicle for getting around. Some companies will provide their foreign staff with a car as well as a driver.

Expats in Azerbaijan for a short-term stay typically find that commuting on public transport is easy and affordable. From buses to the Baku Metro, ticket costs are low, especially compared to major European countries.

Cost of groceries in Azerbaijan

Imported food can easily cost a few times more than local produce. Expats who favour certain international brands may find the prices high. Thanks to Azerbaijan’s favourable climate, there is always a selection of local fresh produce available, so it’s unnecessary for expats to buy expensive imported foods.

Cost of entertainment and eating out in Azerbaijan

Whether it's indulging in Azeri cuisine or enjoying a night out, entertainment and dining in Azerbaijan can be quite reasonable. Baku, being a cosmopolitan city, offers a range of eateries from budget-friendly to high-end establishments. A meal at a local restaurant might be as cheap as a sandwich from a café in central Sydney or a croissant in Paris. If one fancies dining at a posh place with a view, they might end up spending as much as they would for a nice dinner in downtown New York or London.

For entertainment, there are plenty of options. Whether it's watching a movie, attending a concert, or exploring the nightlife, Baku has something for everyone. The city's vibrant arts scene means that one can catch a theatre performance or a local band at a fraction of what it might cost in cities like Berlin or Amsterdam. That said, as with all places, upscale venues or international acts might command prices more in line with those found in major Western cities.

Cost of education in Azerbaijan

Expats don’t usually send their children to public schools in Azerbaijan, choosing to rather enrol them at international schools. These schools offer top-quality educational facilities and qualified teachers, and allow expat children to continue their learning in a familiar language and curriculum. Fees at these schools, as with elsewhere in the world, can be expensive. We advise expats with children to ensure that their relocation package caters for this.

Cost of healthcare in Azerbaijan

While the healthcare system in Azerbaijan has seen improvements over the years, many expats prefer to use private healthcare providers or seek medical treatment abroad for more serious conditions. The cost of private healthcare in Azerbaijan can be steep, especially when compared to public services.

It's highly recommended for expats to have a robust health insurance policy that covers not just treatments within Azerbaijan but also potential medical evacuations. Many expats, especially those from Western countries, sometimes prefer treatment in neighbouring Turkey or even further afield in Western Europe due to the perceived higher standards of care in those regions.