Armenia Tax Calculator 2026

Armenia uses flat 20% income tax rate on employment income regardless of amount. Very simple system - no brackets or allowances. Tax applies to salaries, wages, bonuses from Armenian sources. Tax residents pay 20% on worldwide employment income. Non-residents pay 20% only on Armenian-source income. Additional rates: 10% on interest and rental income, 5% on dividends, 20% on other income. High-tech sector R&D salaries eligible for reduced 10% rate under 2025-2031 incentives.

Digital nomads who become Armenian tax residents by spending 183+ days in Armenia within 12 months pay tax on worldwide income. Armenia offers unique residency for digital nomads - must register as sole proprietor (private entrepreneur) to get residence permit. No minimum income requirement. Can apply remotely. Temporary permit (1 year) costs ~$270, permanent (5 years) ~$360. Processing 45-55 days. Small business turnover tax available: 1.5-10% flat rate for businesses under AMD 115 million (~$290,000 annual revenue). Very attractive for remote workers and freelancers.

Employee contributions only - employers pay nothing in private sector. Pension contributions for those born after Jan 1, 1974: 5% if salary ≤AMD 500,000/month, or 10% minus AMD 25,000 if salary >AMD 500,000 (capped at AMD 87,500/month). Military stamp duty: AMD 1,000 for salaries up to AMD 1,000,000, AMD 15,000 for salaries over AMD 1,000,001 (updated Dec 2025). New from 2026: a universal health insurance premium of AMD 4,800/month for salaries above AMD 200,000 up to AMD 500,000 and AMD 10,800/month above AMD 500,000 (none up to AMD 200,000). Total employee burden typically 5-10% plus the health premium and stamp duty. Government co-finances pensions from state budget. Very low employer costs compared to most countries.

Dividends taxed at 5% for both residents and non-residents. One of lowest dividend tax rates globally. Final tax - no additional income tax on dividends. Applies to dividends from Armenian and foreign companies. Dividends from income generated after Jan 1, 2020 for foreigners (after Jan 1, 2018 for citizens). Tax withheld can be refunded if dividend reinvested in same resident entity during tax year. Very efficient for business owners and investors.

Cryptocurrency gains taxed at 20% as capital gains when sold through tax agent. Crypto-to-crypto exchanges are taxable events. No special holding period exemptions. Mining income considered business income, taxed based on business structure (18% corporate tax or turnover tax if applicable). Must be declared in annual tax return. No specific crypto law yet but treated as property/asset. Capital gains from securities sales generally not taxed if sold to individuals (not tax agents), creating potential planning opportunities.

Limited deductions: paid benefits, pension and insurance benefits, insurance premiums paid by employers (up to AMD 10,000/month), single-sum assistance for death of employee/family member, work or assets received free from non-commercial organizations, monetary prizes at competitions (up to AMD 50,000 per prize). No standard personal allowance. No mortgage interest deduction. No dependent child allowances. Voluntary pension contributions deductible up to 7.5% of salary. Business expenses generally deductible with specific limits (travel expenses 5% of gross income, representative expenses 0.5% or AMD 5 million).

Tax year follows calendar year (January-December). Annual income tax return deadline extended to November 1, 2025 (previously different). Late filing penalties: AMD 5,000 for most individuals, AMD 50,000 for entrepreneurs and major participants. Employees with only salary from one employer usually don't need to file - employer handles withholding. Must file if have multiple income sources, self-employed, rental income, foreign income. Monthly payroll filings by employers due by 20th of following month via State Revenue Committee e-portal.

No wealth tax in Armenia. No annual tax on net worth. No inheritance tax - assets pass tax-free to heirs. No gift tax between individuals. Property tax exists: 0.05-1.5% annually for dwellings and other buildings (progressive), 0.3% for public buildings, 0.25% for industrial buildings, based on cadastral value. Real estate tax for 2021-2026 phased in gradually (35% in 2023, 50% in 2024, 75% in 2025, 100% in 2026 of full rate). Agricultural land taxed at 15% of net cadastral income. Vehicle tax based on seats and horsepower.

Standard corporate income tax: 18% on net profits. Capital gains included in taxable income at same rate. Alternative simplified regime available: turnover tax at 1.5-10% depending on activity type, replaces both CIT and VAT. Micro-business regime: businesses under AMD 24 million revenue exempt from most taxes except AMD 5,000 per employee. High-tech companies get special treatment: certified R&D activities eligible for super-deductions, 50-100% income tax reimbursement for hiring young talent and skilled migrants (2025-2031 program). IT companies in some cases fully exempt from corporation tax.

Yes, foreigners can own 100% of Armenian businesses. Very open economy. Can register as sole proprietor (private entrepreneur) or establish LLC/CJSC. Sole proprietor registration costs AMD 3,000 (~$8), takes few days. LLC registration more complex but still straightforward. Minimum capital requirements vary by structure. Foreigners establishing businesses can obtain residence permits. Process can be done remotely with power of attorney to local lawyer. Popular for digital nomads - register as sole proprietor, get tax ID, report income, obtain residence permit. No sector restrictions for most businesses.