VIDEO. How to pay income tax when renting out an apartment

The State Revenue Committee reminds that as an individual renting out real estate, it is mandatory to pay income tax at a rate of 10% on rental payments.

If the total rental payments exceed 60 million drams during the tax year, an additional 10% income tax must be paid on the exceeding amount.

When renting out real estate, it is necessary to sign a contract that must be registered with the state. However, if it is not registered, a declaration regarding the rental transaction must be submitted to the tax authority.

To submit the declaration, you must visit any service center with an identification document (passport or ID card) and a public service number (PSN). If you are not registered with the tax authority and do not have a taxpayer identification number (TIN), you will be assigned a TIN, after which you can submit the declaration.

The declaration, along with the application and the request for the taxpayer identification number, can also be submitted without visiting a service center via the www.e-request.am electronic inquiries platform.

If you are renting out real estate in Armenia while living abroad, you can also submit the request for the taxpayer identification number, the declaration, and the accompanying application through the www.e-request.am platform.

Declarations for rental transactions that arise until December 1, 2023, must be submitted to the tax authority by February 1, 2024, and for transactions arising after December 1, within 5 days after the actual handover of the property for rent.

In case of termination of income received from rental, a declaration must also be submitted within 5 days following the date of termination.

Failure to comply with the legal requirements concerning the rental of real estate results in a fine amounting to 5% of the market value as assessed under the law, but not more than 500,000 drams. If the violation occurs again within a year, the fine amounts to 10%, but not exceeding one million drams.

The annual calculation of income tax from real estate rental for 2023 must be submitted electronically by May 1, 2024.