The State Revenue Committee of Armenia has announced significant modifications to the mortgage tax return policy, introducing a geographically differentiated approach effective January 1, 2025. This strategic reform marks a pivotal shift in Armenia’s housing policy, implementing region-specific regulations while maintaining existing benefits for current mortgage holders.
The reform’s cornerstone introduces a geographical restriction on tax return eligibility, specifically targeting properties within Yerevan’s administrative boundaries. Notably, mortgages obtained after January 1, 2025, for properties in Yerevan will no longer qualify for income tax returns, redirecting the program’s focus toward regional development. However, this restriction includes a significant exception: properties in Yerevan with construction permits issued before January 1, 2022, remain eligible for tax returns, even for mortgages obtained after January 2025.
A crucial financial adjustment accompanies these geographical modifications. For mortgages obtained after January 1, 2025, the quarterly tax return ceiling will be reduced to 750,000 AMD, compared to the current 1.5 million AMD limit which continues to apply for mortgages obtained before 2025. This measured reduction aims to ensure the program’s sustainability while maintaining significant support for homeowners.
The policy introduces a graduated regional implementation timeline, reflecting a strategic approach to territorial development. Properties in Aragatsotn, Ararat, Armavir, and Kotayk regions will maintain tax return eligibility until January 1, 2027. For the remaining regions – Shirak, Lori, Tavush, Gegharkunik, Vayots Dzor, and Syunik – the program extends until January 1, 2029. Notably, border settlements, as defined by the Government’s approved list, are exempt from these temporal restrictions, highlighting the policy’s role in supporting strategic demographic objectives.
The Committee emphasizes that beneficiaries of existing mortgages obtained before January 1, 2025, remain unaffected by these changes, ensuring policy stability for current participants. Furthermore, there is no deadline for submitting initial tax return documentation, providing flexibility for citizens to apply for returns on pre-2025 mortgages even after the new regulations take effect.
This comprehensive reform package represents a strategic pivot in Armenia’s housing policy, balancing urban development pressures with regional growth objectives while maintaining support for existing beneficiaries. The graduated implementation approach demonstrates careful consideration of regional economic disparities and development needs, potentially catalyzing increased investment and development in Armenia’s provinces.
