Taxes in Armenia

Who counts as a tax resident

An individual is treated as a resident of Armenia if any of the following applies:

• Presence in the country for 183 days or more during the tax year (1 January to 31 December)
• The centre of vital interests is in Armenia
• The person is in Armenian public service

Everyone else counts as a non-resident.

The difference in taxation

Residents pay income tax on their worldwide income. Non-residents pay only on income from Armenian sources.

Income tax rates

Royalty and interest income is taxed at 10% unless it is exempt. The tax is withheld at source by the tax agent.

Income from renting out property is taxed at 10%. If annual rental income is above 60 million drams, a further 10% is payable on top of the tax withheld.

Income from selling property is taxed at 10% or 20% depending on the type of property and on the buyer. Sales of non-business property to individuals are not taxed.

Dividends are taxed at 5% - the same for foreign nationals and for Armenian citizens. Tax withheld on dividends is refunded if the dividends are put back into the capital of the same company within the same tax year.

Other income paid out by a tax agent is withheld at a flat 20% on a base of income less deductions.

FAQ