Property taxation in Armenia

The object of taxation by this tax is real estate located in Armenia, in particular (Article 227 of TC RA):

• buildings for residential purposes, including an apartment, a residential building, a garden house (cottage);
• non-residential premises, including premises in an apartment building, a garage, industrial and public buildings,
• land plots.

Taxpayers are the owners of real estate, as well as persons who have received land for permanent use. Buildings and premises are taxed during their cadastral registration, even if the right to such an object is not registered. At the same time, tax exemption is provided for owners of apartments in an apartment building in relation to a land plot in common ownership (Article 225 of TC RA).

Procedure for declaring and paying tax
The tax period is a calendar year (Article 232 of TC RA), that is, the tax is paid annually during the period of ownership of real estate.
A tax return is not required, since the tax is calculated by the tax authority, which publishes or sends the relevant information to the taxpayer.
As a general rule, the tax is payable before December 1 of the current year at the location of the property (Article 236 of TC RA).

Tax calculation
Property tax is calculated, as a general rule, on the basis of the cadastral value, and in relation to agricultural land - the estimated net income calculated in the manner of the cadastral valuation. The cadastral valuation is carried out once every three years (Article 228 of TC RA). The cadastral valuation depends on the type of property and its characteristics. In particular, to calculate the tax base for multi-apartment buildings, cost per m2 (determined by the territories of Armenia) is used, which is multiplied by the total area and a number of coefficients (Appendix No. 1, Article 238 of TC RA).
The tax is calculated by the tax authorities, which, no later than November 1 of the current year, post this information on their websites and on the administration building, and can also send (hand it over) to the taxpayer. Even if information is not received in this way, the taxpayer must apply to the tax authority to obtain information on the amount of tax (clauses 3, 4 of article 233 of TC RA).
If the property has been owned for less than a year, then the tax is calculated in proportion to the number of months, while the month of acquisition is not taken into account, and the month of disposal is considered a full month (Art. 231, Clause 2, Art. 233 of TC RA).
Moreover, if the property (or cadastral registration) is registered in the month preceding the tax payment deadline, then the tax for the corresponding period is added to the tax liability for the next period (clause 3, article 231 of TC RA).

The tax rate depends on the nature of the property and is (Article 229 of TC RA):
For premises (both residential and non-residential) in an apartment building:

• 0% - with a base of up to 3 million drams inclusive;
• 100 drams + 0.1% of the amount over 3 million drams - with a base of more than 3 to 10 million drams;
• 7100 drams + 0.2% of the amount over 10 million drams - with a base of more than 10 to 20 million drams;
• 27,100 drams + 0.4% of the amount over 20 million drams - with a base of more than 20 to 30 million drams;
• 67,100 drams + 0.6% of the amount over 30 million drams - with a base of more than 30 to 40 million drams;
• 127,100 drams + 1% of the amount over AMD 40 million.

For public and industrial buildings - 0.3%.
For garages - 0.2%.
For land plots:

• 15% - agricultural land;
• 1% (in settlements) and 0.5% (outside settlements) - lands of industry and water resources;
• 0.6% - residential development land;
• 1% - non-agricultural land and forest fund.

The local authority (Council of Elders) has the right to raise the tax rate to 10%.

The objects of taxation by property tax on vehicles are vehicles registered and (or) registered in the Republic of Armenia (Article 242 of TC RA):

• automobile transport;
• water motor transport;
• motorcycle, quad bike;
• snowmobile.

Tax payers are the owners of vehicles (Article 240 of TC RA).

Procedure for declaring and paying tax
The tax period is a calendar year (Article 247 of TC RA), that is, the tax is paid annually during the period of ownership of the vehicle.
It is not required to submit a tax return, since the tax is calculated by the tax authority, which sends the corresponding notification to the taxpayer (including by mail or hands-on).
As a general rule, the tax is payable before December 1 of the current year at the place of residence of the taxpayer, and in the absence of such in Armenia - at the place of registration of the vehicle (Article 251 of TC RA).
Without paying tax on a vehicle, its mandatory technical inspection cannot be carried out.

Tax calculation
The tax is calculated based on the horsepower of the vehicle (Article 243 of TC RA).
The tax is calculated by the tax authorities, which, no later than November 1 of the current year, send (including by mail or by hand) to the taxpayer an appropriate notification. Even if the notification is not received in this way, the taxpayer must apply to the tax authority to obtain information on the amount of tax (clauses 3, 4 of article 248 of TC RA).
If the vehicle has been owned for less than a year, then the tax is calculated in proportion to the number of months, while the month of acquisition is not taken into account, and the month of disposal is considered as a full month (Article 246, paragraph 2 of Article 248 of TC RA).
Moreover, if the property is registered in the month preceding the tax payment deadline, then the tax for the corresponding period is added to the tax liability for the next period (clause 3, article 246 of TC RA).

Tax rates depend on the type of vehicle and are set in the following amounts (Article 244 of TC RA):
1) for cars with up to 10 seats:

• 200 drams per hp - from 1 to 120 hp inclusive;
• 300 drams per hp + AMD 1000 for each hp over 150 hp - from 121 to 250 hp inclusive;
• 500 drams per hp + AMD 1000 for each hp over 150 hp - from 251 hp and more;

2) for vehicles with 10 or more seats:

• 100 drams per hp - from 1 to 200 hp inclusive;
• 200 drams per hp - from 251 hp and more;

3) for motorcycles - 40 drams per hp;
4) for other vehicles - 150 drams per hp.
The tax calculated at the indicated rates is adjusted depending on the age of the vehicle, namely, the tax for the third year (including the year in which the date of issue of the vehicle falls) and for each subsequent year is reduced annually by 10% until the tax amount reaches 50%. In addition, starting from the 20th year after the year of issue of a freight or cargo-passenger vehicle, tax is not paid (clauses 5, 6 of article 244 of TC RA).
The local body (Council of Elders) has the right to increase the tax rate by up to 10%.

In addition to this tax, there is a road tax in Armenia paid by the owners of trucks, as well as by persons placing advertisements on public roads (Chapter 35 of TC RA).