Changes in Income Tax Refund System for Mortgage Loans in Armenia

The income tax refund system for mortgage loan interest payments in Armenia is undergoing several changes that will take effect in the coming years.

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.