YEREVAN, October 2. /ARKA/. A total of 97 billion drams will be allocated in Armenia to reimburse income taxes on mortgage repayments for 62,000 citizens, as stated by Eduard Hakobyan, Chairman of the State Revenue Committee.
“In 2024, there were around 50,000 beneficiaries of the mortgage income tax refund program; in 2025, this number will rise to 62,000. The budget for 2025 has earmarked 84 billion drams for this initiative. From January to September, 70 billion drams have already been utilized,” Hakobyan mentioned during a government meeting on Thursday.
He noted that last year, this amount was 69 billion drams.
“Thus, by the end of the year, total payments will reach 97 billion drams. This represents an unprecedented increase under this program,” Hakobyan added.
Deputy Prime Minister Mher Grigoryan proposed acknowledging that this level of construction has been brought into the open for the first time. He also indicated that construction growth may decelerate after the mortgage income tax refund program concludes in Yerevan on January 1, 2025. Grigoryan further suggested exploring methods to promote construction initiatives in the regions rather than solely in the Yerevan metropolitan area.
The head of the State Revenue Committee replied that the construction sector has been adequately stimulated and is experiencing robust growth.
“Based on our projections, we anticipate a growth trend over the next 1-2 years. Following that, a slowdown is expected due to limitations on income tax refunds,” Hakobyan stated.
He emphasized that there is potential for construction to expand beyond Yerevan.
About the program
Since 2015, Armenia has been executing a program aimed at repaying mortgage interest (on newly constructed buildings) by reimbursing income taxes contributed to the state budget. The maximum property price is set at 55 million drams, and the tax reimbursement is capped at 750,000 drams over a three-month period for loan agreements established after January 1, 2025.
The income tax reimbursement system is being gradually discontinued by region.
1) Yerevan – applicable for mortgages obtained after January 1, 2025 (provided the property is situated within the administrative boundaries of the capital).
2) Aragatsotn, Ararat, Armavir, and Kotayk regions – applicable for mortgages obtained after January 1, 2027 (provided the property is situated within the administrative boundaries of these regions).
3) Other regions – applicable for mortgages obtained after January 1, 2029 (provided the property is situated within the administrative boundaries of the Shirak, Lori, Tavush, Gegharkunik, Vayots Dzor, and Syunik regions). -0-
