Who is a Digital Nomad?
A digital nomad is an individual who leverages technology to work remotely while traveling frequently, often exploring different countries. These modern-day wanderers are typically freelancers, entrepreneurs, or remote employees who enjoy the flexibility to work from anywhere with a reliable internet connection.
Digital nomads often seek out destinations with a low cost of living, rich cultural heritage, and favorable tax laws to maximize their lifestyle and financial benefits.
Background
D. Y., an experienced SEO specialist from Egypt, was working remotely for clients worldwide but sought a new base where she could enjoy favorable tax conditions and secure legal residency without unnecessary complications.
After considering various options, D.Y. has decided on Armenia, an emerging destination for digital nomads, known for its favorable tax laws and exceptionally low tax rates.
To ensure a smooth relocation process, she reached out to Vardanyan & Partners, specializing in assisting digital nomads in Armenia. With Vardanyan and Partner’s assistance, D. Y. felt confident that all her legal needs would be met, allowing her to focus on her work and settle into the new environment.
Why D.Y. chose Armenia?
No Work Permit Required
Armenia’s policy of not requiring a work permit for digital nomads appealed to D.Y. immediately. The ability to enter Armenia with a simple entry visa and work without the need for a work permit made the country a convenient choice.
Favorable Tax Conditions
Armenia offers competitive tax rates for digital nomads. For those whose annual income does not exceed AMD 24 million (approximately USD 60,000), a microbusiness tax exemption may be available. This offers significant financial advantages for small-scale operations.
If microbusiness status is not applicable, the income (sales) will likely be subject to a 5% turnover tax, provided that annual sales do not exceed AMD 115 million (approximately USD 298,000).
Starting January 1, 2025, the turnover tax rate will increase to 10%. Additionally, businesses under this regime will be allowed to deduct up to 9% of expenses from their taxable income, resulting in an effective tax rate that could vary between 1% and 10%.
Obtaining a residence permit in Armenia does not automatically make an individual a tax resident. A person will be considered a tax (or fiscal) resident if they spend at least 183 days in the country within a calendar year.
Vardanyan & Partners informed D. Y. about these benefits, helping her understand how her freelance income would be taxed and how to optimize her business operations under Armenia’s tax regime.
Required Steps for Digital Nomad Visa Application
Step 1: Registering as a Private Entrepreneur
Foreign nationals engaging in freelancing or remote work from Armenia are not required to obtain a work permit or a work visa. A regular visa is sufficient for entry, and individuals from visa-exempt countries can begin working remotely upon arrival. However, for those intending to stay in Armenia for an extended period, obtaining a residence permit is required.
In the case of our client, D.Y., who planned to establish a long-term base in Armenia while continuing her freelance work, we provided comprehensive assistance in securing a digital nomad visa (residence permit). This solution ensured her compliance with local residency requirements while allowing her to seamlessly continue her professional activities from Armenia.
With Vardanyan & Partners providing guidance, D. Y. 's first step was to register as a private entrepreneur (PE) with the State Registry. The law firm handled the preparation of documents and assisted in completing the registration within just two business days. This registration was critical to starting her business activities and proceeding with her residence permit application.
Step 2: Applying for a Residence Permit
Proceeding further, Vardanyan & Partners guided D. Y. through the entire residence permit application process. The legal team ensured that her business documentation—such as invoices, client agreements, and tax records—was properly prepared and submitted.
The law firm’s local expertise proved invaluable in streamlining the paperwork, and they kept the client informed of her application’s status throughout.
Step 3: Interview with National Security Officer
As an integral part of the process, D. Y. was asked to attend an interview with the National Security Officer, a standard procedure for residence permit applicants. Vardanyan & Partners prepared her for the interview, providing clear advice on what to expect and ensuring that her business legitimacy was well-documented. The interview was successful, and the process moved ahead without any issues.
Continuous Support from Vardanyan and Partners
Thanks to the support of Vardanyan & Partners law firm, D. Y. 's residence permit was approved without delays. She now enjoys living and working in Armenia, benefiting from the low cost of living and attractive tax regulations. The legal assistance provided by the firm made her transition smooth and stress-free.
Vardanyan & Partners continues to support D. Y., advising her on local regulations and applying for her daughter's residence permit as a dependent. Moreover, D. Y. is already considering applying for a 5-year residence permit after her initial 1-year permit expires, confident that she has the full backing of a legal team she trusts.
For comprehensive information on residence permit application for digital nomads and remote workers, please visit our website.
Seda Soghomonyan
Client Acquisition
