Changes Related to Real Estate Rental Will Take Effect from December 1

Starting from December 1, 2023, changes to certain provisions related to real estate rental in the Republic of Armenia’s tax code will come into effect. This information is reported by the State Revenue Committee.

If the requirements set out in the code regarding real estate rental are not adhered to, a fine will be imposed, amounting to 5% of the cadastral value that closely approximates the market value of the real estate, but not exceeding 500,000 AMD. In the case of repeating the violation within a year, a fine of 10% will be charged, but not exceeding 1 million AMD.

The mentioned liability will not apply if the rights arising from the real estate rental transaction have been state-registered, as well as in cases where rights deriving from the rental agreement have not been state-registered, but a declaration regarding the right to receive income related to the property has been submitted to the tax authority within the timeframe set by law, or the taxpayer has calculated the income tax from the rental income in accordance with the law.

The calculation of income tax on rental income without the state registration of rights arising from the real estate rental transaction, or the submission of a declaration to the tax authority regarding the right to receive income related to the property, cannot serve as a basis for recognizing any rights over the leased property or for validating (recognizing) the rental transaction.