Changes in the Income Tax Refund Process: State Revenue Committee

The State Revenue Committee reminds citizens that from January 1, 2025, there will be several changes in the income tax refund process for mortgage loans, which will exclusively pertain to mortgage loans obtained after January 1, 2025. The changes will not affect beneficiaries who received mortgage loans prior to this date.

What will change?
As of January 1, 2025, the opportunity for income tax refunds on mortgage loans will not apply if the property is located, is being constructed, or will be constructed in the administrative territory of Yerevan. Instead, the program will continue to operate in the regions.

Important to know:
Beneficiaries who obtained mortgage loans after January 1, 2025, can still benefit from income tax refunds when purchasing apartments constructed or under construction in the administrative territory of Yerevan, provided the construction permits were obtained before January 1, 2022. For example, if a beneficiary acquires an apartment in Yerevan's administrative territory using a mortgage loan after January 1, 2025, they can access the income tax refund if the construction permit for the property was granted before January 1, 2022.

What will change?
Additionally, under another change, the amount of income tax refunded quarterly to beneficiaries of mortgage loans obtained after January 1, 2025, will not exceed 750,000 drams. Beneficiaries who received mortgage loans prior to January 1, 2025, will continue to receive a maximum refund of 1.5 million drams on a quarterly basis.

The SRC also reminds citizens that when purchasing an apartment from a developer with a mortgage loan or constructing an individual house in the regions of Armenia, it is important to consider that the income tax will NOT be refunded for mortgage loans obtained after January 1, 2027, if the property is located or will be constructed in the regions of Aragatsotn, Ararat, Armavir, and Kotayk. Furthermore, for mortgage loans obtained after January 1, 2029, the same applies if the property is situated in the previously mentioned regions of Shirak, Lori, Tavush, Gegharkunik, Vayots Dzor, and Syunik.

The mentioned restrictions do not apply to properties located or under construction in border settlements included in the list approved by the Government.

At the same time, the committee announces that there is no deadline set for submitting documents for the purpose of refunding income tax. Therefore, citizens can submit the necessary documents to the tax authority regarding mortgage loans obtained before January 1, 2025, even after this date.