Legal Tips for Digital Nomads: What Work Permits Digital Nomads Need in Armenia?
In this article, we will explore the legal landscape for digital nomads in Armenia, with a specific focus on work permits and the tax system.
Understanding legal basics for digital nomads
Armenia, despite not having a specific government-designed program for digital nomads, does provide freedom for them to work and live in the country. As a digital nomad engaging in freelancing or remote work in Armenia, you are not obliged to obtain a work permit or a work visa, which are reserved for foreign employees of Armenian firms. Instead, a regular visa will suffice, and if you are from a visa-exempt country, you can enter Armenia and begin working remotely. However, if you plan to stay in Armenia for extended periods, obtaining a residence permit will likely be necessary.
Taxes for digital nomads in Armenia
In Armenia, digital nomads are exempt from taxation on their worldwide income unless they stay in the country for more than 183 days in a calendar year. If they exceed this duration, they will be considered tax residents of Armenia and will have tax obligations. The tax rate will depend on the type of income. While business income is generally taxable at 20%, dividends are taxed at 5%, interest income is taxable at 10%, etc.
Residence permits for digital nomads
If digital nomads decide to extend their stay beyond their visa period, they can get a residence permit in Armenia by registering a business in Armenia. The process involves acquiring a local tax ID number by registering as a "private entrepreneur" at the State Registry of Legal Entities, which typically takes 1-2 business days. After registering as a "private entrepreneur," foreigners can apply for a residence permit.. The residency application is typically processed within two months, and an interview with a national security officer may be conducted within around three weeks of submitting the application to verify the genuineness and operation of the business.
Navigating the tax system
For businesses with annual sales (income) not exceeding AMD 24 million (about USD 62,000), the "microbusiness" status may be granted, exempting them from taxes. However, certain services, such as consulting, marketing, engineering, accounting, etc., cannot enjoy this status. If the "microbusiness" status is not applicable, the turnover tax regime can be used, taxing income (sales) at 5%, provided annual sales do not exceed AMD 115 million (about USD 298,000). Private entrepreneurs under the turnover tax regime pay a fixed amount of AMD 5,000 (around USD 13) per month as income tax, AMD 5,000 (around USD 13) per month as social payments, and AMD 18,000 to 120,000 (around USD 47 to 311) per year as a military tax. To ensure accurate and timely filing of various tax returns, it is highly recommended to engage the services of a local accountant.
What Makes Armenia a Good Choice for Residency
No Stay or Visit
Maintaining residency in Armenia does not require physical presence; remote application is possible.
Fast and Easy
The residency application usually takes about 80 days and only a valid passport is required.
Residents can sponsor extended family for residency (parents, siblings, grandchildren, etc.)
After living in Armenia for three years, citizenship can be obtained. Dual citizenship is allowed.
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We are committed to keeping your e-mail address confidential. We do not sell, rent, or lease our contact data or lists to third parties, and we will not provide your personal information to any third party individual, government agency, or company at any time.
Our Proven Process of Making Armenia Your Second Home
As part of the preparation process, we will take care of translating your passport, printing photos, and filling out the necessary forms.
Residency for Family
You can sponsor your spouse, children, parents, siblings, grandparents, and grandchildren to obtain residency in Armenia.
In order to qualify for residency, you have the option of either making a low-risk investment in government bonds or donating to a rural development project.
SSN, Tax ID, Etc.
You can obtain a certificate of registered address, a social security number, personal tax identification number, as well as a tax residency certificate.
Applicants can choose to apply for a temporary (1-year) or permanent (5-year) residence permit remotely or in-person.
You can choose from 18 banks offering online and mobile banking, Visa and MasterCard options, and up to 11% interest on deposits in AMD, RUR, etc.
What Clients Say
Overall, I felt it could not have been any better. Everything was taken care of so smoothly, effortlessly, and managed very well.
It is always daunting when dealing with immigration, visas etc in a foreign country. The team at Vardanyan & Partners made the process for registering the business and applying for residency so much easier. I had no worries at all. The team overall really went out of their way to accommodate and assist us.
The team members were all professional, knowledgeable and most importantly, honest. They are hard-working and patient and were always responsive to my messages and questions. What I like most is, they are very well organised and have a modern system of work.
Armenia is a captivating nation with a rich history and a promising future. Our firm is wholeheartedly committed to supporting individuals and businesses that recognize Armenia's potential and are eager to contribute to its ongoing success.
We trust that this website will serve as a valuable resource for you in gathering the information you need. Should you have any questions or require further assistance, please feel free to get in touch with us. You can easily contact us through various channels, such as completing the form on our website, emailing us directly at [email protected], or reaching out via phone or popular messaging apps like WhatsApp, Viber, Telegram, and Skype at +374.99.00.11.67. We are always available to assist you in any way possible.
LL.M. Georgetown University, licensed to practice in both Armenia (license no. 903) and New York (license no. 5148945)
Vardanyan & Partners is a reputable law firm situated in Yerevan, Armenia, which has been providing excellent legal services since its establishment in 2012. Our team of locally licensed, English-speaking attorneys specializes in immigration, incorporation, and compliance matters, ensuring that clients receive expert legal guidance. We are committed to staying up-to-date with the latest changes in legislation and regulations, ensuring that our clients receive the most relevant and accurate advice. At Vardanyan & Partners, we place a strong emphasis on honesty, transparency, and client care.
Where to find us
4/3 Pirumyanner, 4th Floor, Suite 12 , Yerevan, 0054, Armenia