YEREVAN, June 11. /ARKA/. The Armenian government does not intend to extend the income tax refund program for mortgage interest repayments in the regions adjacent to Yerevan, RA Prime Minister Nikol Pashinyan announced.
“Starting January 1, 2027, the income tax refund program for mortgage interest repayments will cease to apply in the regions adjacent to Yerevan. We will not extend it. All investors must have a construction permit by January 1, 2027,” Pashinyan said at a government meeting on Thursday.
The regions in question are Aragatsotn, Ararat, Armavir, and Kotayk.
According to the Prime Minister, the time has come for the program to continue to operate, with certain restrictions, in the country’s more remote regions.
Pashinyan noted that the government is consistently implementing the previously approved policy of gradually phasing out the program in the most developed areas in terms of construction and stimulating housing construction in the regions.
About the Program
The mortgage income tax refund system has been in effect in Armenia since 2015 and provides for compensation of mortgage interest using previously paid income taxes. The program applies to the purchase of housing in the primary market.
As of January 1, 2025, the program will no longer apply to new mortgage transactions in Yerevan, with the exception of certain projects that received construction permits before January 1, 2022. The maximum refund amount for new loan agreements has also been reduced from 1.5 million to 750,000 drams per quarter.
According to the current reform schedule, from January 1, 2027, the program will no longer apply to real estate in the Aragatsotn, Ararat, Armavir, and Kotayk regions, and from January 1, 2029, it will also cease to apply to the remaining regions of Armenia, with the exception of a number of border settlements.
