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

Non-resident investment in dram bonds in Armenia has nearly doubled, Central Bank Board Member

A rather interesting picture of increased foreign investment is emerging in Armenia's capital market, said Armen Ktoyan, a member of the Board of the Central Bank of Armenia, in an interview with CivilNet.

IDBank warns of scam calls impersonating pension funds

There is a growing risk of scam calls targeting the most vulnerable category of citizens -pensioners.

Become a Unibank shareholder and benefit from an attractive investment opportunity

Individuals and legal entities can acquire ordinary shares from Unibank’s new share issue until September 9, 2026, at a placement price of AMD 390 per share.

Fitch: Armenia’s International Reserve Adequacy to Remain Below That of Similar-Rated Countries by 2028

Armenia's international foreign exchange reserves have reached a record high, but their sufficiency to cover the country's external needs in the medium term will remain below the average for countries with similar credit ratings, according to a report by the international rating agency Fitch Ratings.

MONEYVAL recommended Armenia strengthen its fight against money laundering and confiscation of criminal assets

The Council of Europe's Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) noted Armenia's progress in developing its system for combating financial crime, but recommended strengthening the effectiveness of money laundering investigations, asset confiscation, and oversight of certain economic sectors.

LATEST NEWS

spot_imgspot_imgspot_img