Abstract We use the Horizon Run 5 cosmological simulation to study the effect of galaxy intrinsic properties and the local environment on active galactic nuclei (AGNs) characterized by their threshold of the accretion rate. We select galaxies in the stellar mass range 10 9.5 ≤ M * / M ⊙ ≤ 10 10.5 in the snapshot at redshift z = 0.625. Among various intrinsic properties, we find that the star formation rate of the host galaxy is most correlated to the AGN activity. To quantify the environment, we use background galaxy number density (large-scale environment) and distance and morphological type of the nearest neighbors (small-scale environment), and study their relative effects on the AGN properties. We find that, compared to the background density, the nearest neighbor environment is the dominant quantity determining the bolometric luminosity, star formation rate, and kinematic properties of AGNs and better dictates the gas mass of the host galaxy. We show that the cold gas content in the host galaxies is crucial in triggering AGN activity. However, when the nearest neighbor environment effects start to act at the neighbor distance of less than about half the virial radius of the neighbor, the neighbor environmental effects are the most dominant factor for quasar activity.