Taxes in Armenia

Armenia tax rates in 2026 at a glance

A cheat sheet based on the Tax Code of Armenia as currently in force. Details, exceptions and worked examples follow below.

The system is almost entirely flat. Progressive income tax was abolished in 2020, the rate fell by a point a year from 23% and has been 20% since 2023. Employers pay nothing on top of gross pay: the pension contribution, stamp duty and health insurance are all withheld from the employee.

What changed: turnover tax rates rose on 1 January 2025 alongside a new partial deduction for expenses, the universal health insurance law took effect on 25 December 2025, stamp duty was cut to two bands, and from 2026 real estate tax is charged at 100% of the cadastral calculation. Already enacted: 15% on dividends from unlisted bank shares from 1 February 2027 and separate taxation of property management income from 1 June 2027.

Compare taxes in 146 countries: relocation taxes 2026

Who counts as a tax resident of Armenia

Residents are taxed on worldwide income, non-residents only on Armenian-source income. The tests are in article 25 of the Tax Code, and any one of them is enough.

The last rule is the one people miss. Move in March and reach 183 days by the autumn, and you are resident from 1 January, so January dividends or interest received before the move fall into the Armenian base. Leave in June after six months and you stay resident until year end.

The centre of vital interests test is loose: a flat in Yerevan, family nearby and your main business here can make you resident even at 150 days. A residence permit alone does not create residency but is evidence of ties, see Armenia residence permit and our article on the 183-day rule. An Armenian citizen with a second passport is treated only as an Armenian citizen for tax, which matters for the universal declaration.

The rate on salary is 20% for everyone. The difference is scope: a non-resident working remotely for a foreign client pays no Armenian tax on that income. Once resident, you are taxed on worldwide income, with foreign tax credited up to the Armenian tax on the same income.

Armenia tax residency: how to get it and count the days

Armenia makes you resident with 183 days or more in a calendar year, and the days of entry and exit count in full. The second route is a centre of vital interests: family, home and main income in Armenia give the status even at 150 days.

Resident for even one day means resident for the whole year, so income from before the move also falls into the Armenian base. A resident pays 20% income tax on worldwide income, a non-resident only on Armenian income. The status is confirmed by a State Revenue Committee certificate.

Mistakes cost more: January dividends received before the move are suddenly taxed in Yerevan. Murblz support removes these risks: we count days, plan the moving date and obtain the certificate. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

Talk to a manager now

Personal income tax: 20% plus special rates

Rates are set by article 150 of the Code.

There is no personal allowance, no child deduction and no expat regime, so tax starts with the first dram. Only items on the closed list in article 147 are left out of income. The ones that matter to people relocating:

• gifts and inheritances from individuals;
• pensions of every kind, including those paid under the laws of other states;
• voluntary pension contributions up to 5% of the base;
• health insurance paid by the employer, up to $30 (10,000 dram) a month;
• competition prizes up to $140 (50,000 dram).

The mortgage interest refund is nearly closed

Article 160 lets an employee reclaim mortgage interest on a new apartment from a developer, or on building a house, out of income tax paid. For loans after 1 January 2025 the cap is $2,100 (750,000 dram) a quarter, homes above $160,000 (55 million dram) do not qualify, and in Yerevan there is no refund on such loans at all. For loans after 1 January 2027 it ends in Aragatsotn, Ararat, Armavir and Kotayk, and after 1 January 2029 in the other provinces, except border settlements on the Government list.

Payroll deductions and take-home pay

Armenia has had no employer contributions since 2013: everything is withheld from pay, so a hire costs the company exactly the gross salary.

The pension contribution goes to a personal pension fund account, not the budget. The $3,200 (1,125,000 dram) cap equals 15 minimum wages of $210 (75,000 dram). The full health insurance package costs $360 (129,600 dram) a year, or $30 (10,800 dram) a month; on pay of $560-1,400 (200,001-500,000 dram) only $15 (4,800 dram) is withheld, and according to the Health Ministry the state covers the rest during the transition. There is no citizenship condition for employees and sole traders, but foreigners are covered only if they hold residence status in Armenia (article 11 of the universal health insurance law).

Example: three salary levels in 2026

An employee born in 1990, dram per month.

Someone born before 1974 pays no pension contribution and keeps $1,800 (628,200 dram) of a salary of $2,300 (800,000 dram). A burden of about 26-28% of gross is moderate, but there is no child allowance and no tax-free threshold.

Sole traders

Sole traders pay their own. Health insurance is $360 (129,600 dram) a year if last year's income exceeded $6,700 (2,400,000 dram), due by 20 April. Since 2026 stamp duty is $35 (12,000 dram) a year on income up to $34,000 (12 million dram) and $340 (120,000 dram) above. Under the funded pensions law, the pension contribution for those born in 1974 or later is 5% of basic income up to $17,000 (6 million dram) a year and 10% of income minus $830 (300,000 dram) above that.

Corporate tax at 18% and dividends at 5%

Resident companies are taxed on worldwide income, non-residents with a permanent establishment on the income attributed to it. The base is income less documented expenses, with foreign tax credited up to the Armenian tax.

Advances are due by the 20th of the last month of each quarter, at the lower of 20% of last year's tax and 2% of the previous quarter's revenue; none are due in the year of registration. The annual return and balance are due by 20 April. The statute of limitations is three years and audits are risk-based.

Dividends are taxed at 5% for citizens and foreigners alike. Tax withheld is refunded if the money is reinvested in the same company's capital within the same year. Under Law HO-385-N of 3 July 2026, dividends on unlisted bank shares are taxed at 15% from 1 February 2027, including when paid to Armenian companies. How to set up and pick a regime is covered in company registration in Armenia, with other jurisdictions under company formation.

VAT at 20% and turnover tax up to $320,000

Value added tax is 20%. There is no registration threshold in the European sense: on the general regime you are a value added tax payer from day one unless you elected turnover tax or micro-business. The $320,000 (115 million dram) often called the value added tax threshold is really the ceiling for turnover tax; cross it during the year and value added tax applies to the excess.

Exports of goods are zero-rated, as are consulting, marketing, design, engineering, legal and accounting services and data processing for recipients abroad. Most financial and education services are exempt. Foreign suppliers of electronic services to Armenian customers must register and charge 20%. Value added tax returns are monthly, by the 20th.

Turnover tax: rates since 2025

For companies it replaces value added tax and corporate tax, for sole traders only value added tax. Rates rose on 1 January 2025, but a partial deduction for documented expenses arrived with a floor.

Example. A services company earns $28,000 (10,000,000 dram) in a quarter with $12,000 (4,000,000 dram) of documented direct expenses. Tax at 10% is 1,000,000 dram, the 6% deduction is 240,000, so $2,100 (760,000 dram) is payable, above the 4.5% floor of 450,000 dram. Without paperwork the full 1,000,000 dram would be due. Unused deductions carry forward.

The election is filed by 20 February, or within 20 days of registration for new businesses; returns and payment are quarterly, within 20 days after the quarter. The regime is closed to banks, insurers, investment firms, pawnshops, exchange offices, casinos, notaries, auditors, legal firms and foreign branches, and the tax authority can combine the turnover of related parties. The 2025 amendments to the Tax Code added accounting and consulting to the exclusions, so check your activity code first.

Micro-business, sole traders, freelancers and tech companies: choosing a regime

Small businesses have three routes, and the type of activity matters more than turnover.

Micro-business: who is locked out

The status is open to companies and sole traders with prior-year turnover up to $67,000 (24 million dram). An individual without sole trader registration can also qualify by doing only Annex 3 activities, such as making and repairing clothes and shoes, repairing appliances, language courses, dance and singing lessons and creative work; the patent is issued within a working day. Excluded are trading, consulting, legal, accounting, engineering, advertising, design, marketing and translation services, information processing, R&D, construction, medicine, catering in Yerevan, and earning rent, interest or royalties. A typical freelance developer or designer cannot use it.

Tech companies: 1% of turnover and the rest of the package

The main incentive is turnover tax at 1% on activities on the Government's high-tech list until 31 December 2031, with the $320,000 (115 million dram) ceiling still in place. A 2025-2031 package for high-tech companies adds an extra 200% deduction for qualifying salaries (capped at 50% of the corporate tax base), 10% income tax for R&D staff and a refund of 60% of income tax on new hires and labour migrants. Conditions: listing on the high-tech register, at least 90% of revenue from such activities and no tax debts. Among current incentives there is no zero-profit-tax regime for tech companies.

Example: a freelance sole trader earning $83,000 (30 million dram) a year

Turnover tax with no documented expenses, dram per year.

Documented expenses cut the tax on services, but not below 4.5% of turnover. If you were born in 1974 or later, add the pension contribution; Murblz specialists check its base. Salary from a foreign employer with no Armenian presence is different: there is no tax agent, so a resident declares it after year end at 20%. We can help open an account through business accounts in Armenia and take over filings through accounting and reporting support.

Tax on homes, cars, inheritance and crypto

Since 2021 a real estate tax and a vehicle tax have replaced the old property and land taxes. Both are local, calculated by the municipality, and individuals file no return.

Real estate tax

The base is cadastral value, set close to market value and revised every three years. The tax was phased in over six years, from 25% of the calculated amount in 2021 to 75% in 2025 and 100% from 2026. Apartments follow the scale in article 229:

Houses have their own scale with the same 0.05-1.5% range but different bands. Public buildings pay 0.3%, industrial 0.25%, garages 0.2%. Example: an apartment with a cadastral value of $170,000 (60 million dram) pays 64,000 dram plus 0.4% of 13 million, which is 52,000, a total of $330 (116,000 dram) a year; one valued at $83,000 (30 million dram) pays $85 (30,000 dram). The notice arrives by 1 November and payment is due by 1 December. Buying to let? See investment property in Armenia.

Vehicle tax

Motorcycles pay 40 dram per hp, boats and quad bikes 150, and kW are multiplied by 1.36. From the third year after manufacture the tax falls 10% a year, by at most 50%, and municipalities may raise rates by up to 10%. A 150 hp car costs $130 (45,000 dram) a year, a 200 hp car $310 (110,000 dram) and a 300 hp car $830 (300,000 dram). Due by 1 December or before the annual roadworthiness test.

Inheritance, gifts, capital gains and crypto

There is no inheritance, gift or wealth tax: gifts and inheritances from individuals are tax-free, while gifts from companies are taxed at 20%. Selling a flat or car to another individual, or selling land, is not taxed; a sale to a company or sole trader is taxed at 10% at source. Gains on shares and securities are exempt under article 149; the text does not limit this to Armenian securities, but confirm the tax authority's view of trades through a foreign broker in advance. Since 4 July 2025 the Code has crypto-asset rules: an individual's income from selling crypto-assets is exempt, except NFTs and coins received for mining or validation, which are taxed at 1% on sale; see our article on crypto and taxes when relocating.

Non-residents and double tax treaties

A non-resident without a permanent establishment is taxed at source by the Armenian payer.

The tax is paid by the 20th of the month after the quarter. Under domestic law a permanent establishment arises, for example, when services are provided through staff for 183 days or more in a year; a treaty can set its own period for a building, assembly or installation site.

Treaty rates for selected countries

Rates come from the treaty texts. Armenia has about fifty treaties, including Germany, France, the Netherlands, the United Kingdom, Switzerland, China and India, and among former Soviet states also Moldova, Tajikistan, Turkmenistan and Ukraine. A reduced rate at source needs a residence certificate obtained in advance.

The treaty with Russia, signed on 28 December 1996 and applied since 1 January 1999, is not suspended, and since 1 January 2025 the multilateral convention with its anti-abuse rules applies to it. The rates in the table are as amended by the 2011 protocol, under which a building, assembly or installation site creates a permanent establishment only if it lasts more than 12 months. The treaty has no centre of vital interests test: a dual resident is resident where they have a permanent home, and if they have one in both countries or neither, citizenship decides.

Filing, deadlines and penalties

Who files an annual return

From the 2025 tax year Armenia has universal declaration: every resident Armenian citizen files, except minors, after a phased rollout for 2023-2024. Resident foreigners file if they had income with no tax withheld at source, for example from abroad. A non-resident files only for Armenian income not received through a tax agent. The Tax Code sets no separate duty to report foreign accounts, but the income from them is declared.

Penalties

Late payment costs 0.075% a day, for no more than 730 days. Late filing costs 5% of the tax calculated for every full 15 days, capped at the tax itself. For help with a return or a dispute, talk to Murblz specialists.

What it means if you are relocating

Armenia offers flat rates and no employer contributions, but the system has sharp edges.

Tax from the first dram. No allowance, no child deduction, no expat regime; with deductions an employee gives up about 26-28% of gross.

Worldwide income for the whole year. Residency covers the whole calendar year, including months before the move. Foreign dividends are taxed at 5% and interest at 10% or 20%; check in advance whether the 10% rate covers deposits in foreign banks.

Some treaties fall back on citizenship. Under a treaty without a centre of vital interests test, a person with a home in both countries stays resident in the country of citizenship, whose rules on foreign accounts and controlled foreign companies keep applying.

A passport means a return. Resident citizens declare income every year from 2025, and dual citizenship is no exemption. If you are heading for Armenian citizenship, plan for it.

Micro-business is not for freelancers. Consulting, IT services, design and marketing are excluded, and 1% applies only to the high-tech list and up to $320,000 (115 million dram) of turnover.

Rules change often. In 2025 the turnover tax rate for trading doubled from 5% to 10%, in 2026 health insurance arrived and real estate tax reached full strength, and in 2027 tax on bank dividends rises. Banks exchange data under the Common Reporting Standard and have tightened client due diligence, see our article on residence permits and banks in Armenia.

Related reading: all Armenia programmes, taxes in Georgia and taxes by country.

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