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 new 750,000 AMD quarterly cap for newer agreements, the fact that Yerevan is already closed to newly eligible mortgages, and the later 2027 and 2029 cutoff dates for the regions.

Quarterly Income Tax Refund Limit Change

For mortgage loan agreements signed after January 1, 2025, the maximum quarterly refundable income tax amount will be reduced from the current 1.5 million drams to 750,000 drams.

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 City For mortgage loans received after January 1, 2025, if the real estate is located in Yerevan's administrative territory, income tax refunds will not be implemented.

• 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 income tax refund system will continue to operate even after these deadlines for real estate located or under construction in border settlements.

These changes aim to revise the scope of the income tax refund system for mortgage loan interest payments, taking into account regional characteristics and socio-economic conditions.