ARMENIA

Name of country

  • ARMENIA

Region

  • Southwestern Asia, between Turkey (to the west) and Azerbaijan; note - Armenia views itself as part of Europe; geopolitically, it can be classified as falling within Europe, the Middle East, or both

Population

  • 3,011,609 (July 2021 est.)

General Introduction

  • A residency permit in Armenia entitles you to visa-free travel and unrestricted stay in the nation, as well as the freedom to engage in any legitimate activity, such as business, job, study, or simply retire. A resident may sponsor his or her family members to become citizens of Armenia, as well as invite other foreigners to visit. Residents have constitutional rights to work, healthcare, social security, education, property, and privacy, as well as freedom of expression, conscience, religion, and belief. Residents of Armenia are not required to serve in the military.

Wifi Speed

  • According to data published by Speedtest in May 2021, the average speed of a fixed broadband connection was 34.5 Megabits per second (Mbps), compared to 26.8 Mbps during the same period in 2020, while the average speed of a mobile internet connection was 30.5 Mbps, compared to 34.84 Mbps during the same period in 2020).

Electrical outlet

  • In Armenia the power plugs and sockets are of type C and F. The standard voltage is 230 V and the standard frequency is 50 Hz.

Per Capita GDP 

Real GDP growth rate

  • 7.5% (2017 est.)
  • 0.3% (2016 est.)
  • 3.3% (2015 est.)

Climate

  • highland continental, hot summers, cold winters

Residence-by-Investment

  • Investors can also qualify for a residence permit in Armenia on the same terms as the business owners. The law does not specifically require the applicant to be actively engaged in the day-to-day management of the business. Therefore, the same rules that apply to regular business owners will also be appliable to investors.

Investment

  • Minimum Investment - €100,000

Processing Time

  • Up to 30 days after submitting the application.

Key Benefits

  • An Armenian residence visa allows you and your family to live freely in Armenia, a free and open democratic country with a rich history and traditions, magnificent natural surroundings, and a low crime rate. Residents of the United States can visit Armenia without a visa and engage in any legitimate activity, including doing business, working (without a work permit), learning, or simply retiring. Other foreigners may be invited to Armenia by a resident. Residents have constitutional rights to healthcare, social security, education, property, and privacy rights, as well as freedom of speech and religion. Residents of Armenia are not required to serve in the military.
  • If you want to visit other countries, you may need to apply for a visa at an embassy in Armenia if you don't have a resident permit. The resident permit, on the other hand, does not entitle you to travel to other countries.

Requirements

  1. Real Estate Investment. Owning real estate by itself will not qualify you for a residence permit. However, you have the option of 1) developing real estate or 2) purchasing and operating rental property. You should qualify for residency if you turn the property into an income-generating business asset. You would still have to register as a taxpayer in Armenia (e.g. as a sole proprietor, LLC owner, etc.) and pay taxes on your income (rental income is normally taxed at 10%).
  2. Investvent in an Existing Business. It is possible to qualify for residency by purchasing an existing business or a share in an existing business. Such transctions are normally more complicated because of the due diligence checks and appraisal matters.
  3. Other Assets. Investment in publicly-traded government or corporate bonds, corporate stock may also qualify you for residence. You may check the website of the Armenian Stock Exchange to check the listed instruments. 

The status of a permanent resident can also be granted to a foreigner of Armenian origin or to a foreigner carrying out entrepreneurial activities in the Republic of Armenia. All residence permits, without exception, can be extended up to 10 years.

Procedures and Time Frame

Step Description Time
1. The package of documents is emailed to the Investor 1 day
2. Investor examines the documents, signs them, and mails a copy back to Vardanyan & Partners (V&P) 1 day
3. The investor transfers the amount of investment to the bank account of the holding company (special purpose vehicle - SPV) and acquires a share equal to the investment. 3-5 days
3. SPV uses these funds to make a temporary investment in safe and liquid assets (such as publicly traded corporate or government bonds) 3-5 days
4. The investor comes to Armenia. The residence permit application is filed TBD
5. Residence permit application is examined and approved 30-60 days
6. V&P collects the residence permit and mails it to Investor 1 day
8. The funds invested in SPV are used to acquire the property, finish, renovate and equip it. The management of the property is handed over to the management company.  Est. by Mar. 31, 2020

Natural Resources

  • small deposits of gold, copper, molybdenum, zinc, bauxite

Ethnic Groups

  • Armenian 98.1%, Yezidi (Kurd) 1.2%, other 0.7% (2011 est.)

 Languages

  • Armenian (official) 97.9%, Kurdish (spoken by Yezidi minority) 1%, other 1%; note - Russian is widely spoken (2011 est.)

Religion

  • Armenian Apostolic 92.6%, Evangelical 1%, other 2.4%, none 1.1%, unspecified 2.9% (2011 est.)

Median Age

  • total: 36.6 years
  • male: 35.1 years
  • female: 38.3 years (2020 est.)

Urbanization

  • urban population: 63.4% of total population (2021)
  • rate of urbanization: 0.23% annual rate of change (2020-25 est.)

Physician density

  • 4.4 physicians/1,000 population (2017)

Government type

  • parliamentary democracy; note - constitutional changes adopted in December 2015 transformed the government to a parliamentary system

Unemployment Rate

  • total: 32.6%
  • male: 31.2%
  • female: 34.4% (2019 est.)

Taxes

Headline Personal Income Tax Rate (highest marginal tax rate) - 22%

Headline Corporate Income Tax Rate (excluding dividend taxes) - 18%

Territorial Tax / Worldwide Tax / Hybrid 

  • Armenia does not tax capital gains on the sale of securities, gains from the sale of real estate or other assets, irrespective of whether these gains are generated in Armenia or elsewhere. Certain forms of income, such as insurance and pension payments are also exempt from taxes. There are no taxes on gifts and inheritance, net worth tax etc.  
  • There is no general rule that would exempt a tax resident from taxes on income generated outside of Armenia. However, such taxes are rarely enforced in practice because there is no universal requirement for individuals to file tax returns. 
  • Obtaining an Armenian residence permit and establishing stronger ties with Armenia can help you to qualify for a non-resident status in your country of origin or other countries and take advantage of certain tax benefits. You may obtain documents such as proof of registered address in Armenia, social security number, taxpayer identification number, tax residency certificate, etc.

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