Armenia decides to curtail income tax refund program on mortgage loans

YEREVAN, November 23. /ARKA/. The Armenian government approved today a decision on gradual abolition of a scheme that allows mortgage borrowers to repay the loan interest at the expense of their income tax. 

According to the decision, the scheme will not apply to mortgage loans to be issued after January 1, 2027 in Aragatsotn, Ararat, Armavir and Kotayk regions bordering the capital Yerevan.

From January 1, 2029 the scheme will cease to operate in the remaining regions of the country, except for the border settlements.  

From January 1, 2025 the amount of income tax refund to borrowers or co-borrowers cannot exceed 750 thousand drams per quarter, down from the current 1.5 million.

The scheme has been effective since 2018.  The cost of a house should not be more than 55 million drams.-0- ($1 – $402.99 dram) –0–.

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