Armenia to implement changes in income tax refund for mortgage interest starting January 2025

YEREVAN, August 7. /ARKA/. Starting January 1, 2025, Armenia will introduce legislative changes affecting the refund of income tax on mortgage interest payments, the State Revenue Committee of Armenia announced on Wednesday.

The changes, outlined in Article 160 of the Tax Code, will remove income tax refunds on mortgage interest paid by individuals employed as wage earners for:

  • Mortgages taken out after January 1, 2027, if the property is located, being built, or will be built in Aragatsotn, Ararat, Armavir, and Kotayk provinces.
  • Mortgages taken out after January 1, 2029, if the property is in Shirak, Lori, Tavush, Gegharkunik, Vayots Dzor, or Syunik provinces.

The exceptions to these rules are properties located or under construction in border settlements listed by the government.

Additionally, the amendments set a cap on the total refundable income tax amount per quarter at 750,000 drams.

The SRC also noted that income tax refunds for mortgages taken out after January 1, 2025, will not apply to properties in Yerevan. However, this restriction does not apply to apartments in multi-apartment buildings or private homes under construction with permits issued before January 1, 2022.

Since 2015, Armenia has had a program for refinancing mortgage interest through income tax refunds paid to the state budget, with a limit of 55 million drams on property price and a maximum tax refund of 1.5 million drams per three months.

Amendments to the Tax Code enacted in 2021 have progressively eliminated refunds for properties purchased in new buildings in various zones of Yerevan, with full elimination in the entire city starting January 1, 2025.

In 2023, the SRC reported that approximately 52 billion drams were refunded to 38,911 beneficiaries under the mortgage interest tax refund program.

spot_img

POPULAR

Central Bank of Armenia acquired $1.9 billion in market from beginning of year through September – Finance Minister

The Central Bank intervened in the market and acquired approximately $1.9 billion from the beginning of the year through September, Armenian Finance Minister Vahe Hovhannisyan stated in parliament while presenting the draft state budget for 2027.

State Revenue Committee of Armenia warned of a ban on export of cash rubles from Russia to Armenia and several other countries

The State Revenue Committee of Armenia reminded about the ban imposed by Russia on the export of cash rubles to Armenia and several other countries.

Fraudsters are issuing loans to Armenian citizens under the guise of utility company employees – the Central Bank has warned of a new scheme

The Central Bank of Armenia has recently received reports of a new financial fraud scheme in which criminals visit citizens' apartments posing as employees of utility companies, the regulator's press service reported.

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (October 26 – November 1)

The financial agenda for the week included a review of bank capital requirements, preparation of a framework for thematic bonds, and the development of a digital financial services infrastructure.

Freedom Broker Armenia Director Expects Pause in Central Bank Rate Hike, but Points to Conditions for Further Increases (EXCLUSIVE)

The Central Bank of Armenia's further decisions on the refinancing rate will depend on inflation dynamics and its structure, according to Freedom Broker Armenia Director Hovak Hovakimyan.

LATEST NEWS

spot_imgspot_imgspot_img