Armenia Mortgage Income Tax Refund Changes: Limits and Phase-Out Timeline

Armenia's mortgage income tax refund system has already entered its phase-out period. The rules now depend on when your mortgage was issued and where the property is located, so buyers need to check both the signing date and the region before relying on the benefit.

The key changes are the 750,000 AMD quarterly cap for mortgages received from January 1, 2025, Yerevan's valuation-zone cutoffs, and the later 2027 and 2029 cutoff dates for the regions.

Reviewed July 29, 2026. Eligibility depends on the loan date, the property's valuation zone, the construction-permit date and the statutory exceptions. Confirm the specific property and loan with Armenia's State Revenue Committee before signing.

Quarterly Income Tax Refund Limit Change

For mortgage loans received on or after January 1, 2025, the maximum refund is 750,000 AMD per quarter in total for the borrower and any co-borrowers. The refund cannot exceed either the qualifying mortgage interest paid or the income tax paid for the period.

Gradual Termination of Income Tax Refund System by Region

Legislative changes envision a gradual termination of the income tax refund system according to the following schedule:

• Yerevan The cutoff was introduced by valuation zone rather than through one citywide date: zone 1 for loans received after July 1, 2022; zone 2 after January 1, 2023; zone 3 after July 1, 2023; and the remaining Yerevan zones after January 1, 2025.

• Aragatsotn, Ararat, Armavir, and Kotayk Regions For mortgage loans received after January 1, 2027, if the real estate is located in these regions' administrative territories, income tax refunds will not be implemented.

• Other Regions For mortgage loans received after January 1, 2029, if the real estate is located in Shirak, Lori, Tavush, Gegharkunik, Vayots Dzor, and Syunik regions' administrative territories, income tax refunds will not be implemented.

Exceptions

The Tax Code contains exceptions, including qualifying property in designated border settlements. A transitional exception may also apply to a Yerevan project whose construction permit was issued before January 1, 2022. The transaction value must also remain within the statutory 55 million AMD ceiling.

Official source

See Article 160 of the Armenian Tax Code. This overview is general information, not an eligibility decision or tax advice.