Residency by Investment

Armenia offers temporary and permanent residence permits to investors and their families. If you hold a residence permit, you may be eligible for an Armenian passport (citizenship) after just three years of residency. The application process for a residence permit is also quite straightforward. You can apply remotely, and typically, all you need is a valid passport (more details on the process and requirements below). Unlike other countries, Armenia does not require you to stay in the country.

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Overview of Residency by Investment in Armenia

1

Residency by Investment Requirements

Explore the qualifications for residency through investment in Armenia, including document requirements, timelines, and benefits.

2

Alternative Ways for Residency

Discover additional avenues to residency to make a well-informed decision.


3

Investment Opportunities in Armenia

Investigate alternative investment opportunities in our section.



Our Services

Visa & Residency

  • Visa application
  • Visa extension
  • Invitation letter
  • Residence permit
  • Work permit
  • Citizenship

Legal & Compliance

  • Address registration
  • Social security number
  • Tax ID number
  • Tax residency certificate
  • Tax compliance services
  • Health insurance

 Investment

  • Personal bank account
  • Corporate bank account
  • Company registration
  • Real estate
  • Stocks and bonds
  • Bank deposits

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Residency by Investment Requirements

Armenia's immigration laws are quite liberal, and there are multiple ways to become a resident. You can invest in an existing business or rental properties or engage in agriculture, such as vineyards or orchards. In short, being involved in any business, regardless of its size or nature, should qualify you for Armenian residency.

For those who prefer not to establish their own business in Armenia, we offer two alternative paths to secure residency in the country: by making a $6,000 donation to a rural development project (the donation route) or by investing a total of $10,000 (the investment route). If you are interested in learning more about these options, please contact us, and we will provide you with more information.

BENEFITS AND ADVANTAGES OF ARMENIAN RESIDENCY

Armenia is an attractive option for those seeking residency without the need for physical presence in the country, as there are no minimum stay requirements. Residents can also obtain residency for their family members (spouse, minor and adult children, siblings, grandparents, etc.). The country maintains strong relations with the West (European Union, USA, etc.) and has a visa-free regime with nations such as Russia, Iran, and China.

With numerous UNESCO World Heritage Sites and stunning mountainous landscapes, Armenia's beauty is undeniable. The capital, Yerevan, offers an awe-inspiring view of the biblical Mount Ararat. The country's rapidly growing, free economy (12% GDP growth in 2022) presents investment opportunities in high-interest banking and the thriving real estate market (foreign land ownership is permitted). Yerevan is regarded as one of the world's safest cities, boasting low living costs, affordable healthcare, high-speed internet, and exceptional cuisine.

Obtaining Armenian residency offers numerous benefits, such as a five-year residence visa and a path to citizenship after just three years. Remote applications are also possible, and residents can engage in any lawful activities they choose. The application process is quick and straightforward, requiring minimal documentation. Armenia is an open and democratic society valuing individual freedom, with limited government interference. Armenian residents enjoy all the constitutional rights and freedoms granted to citizens, excluding political rights. These rights encompass healthcare, social security, education, property, and privacy, in addition to the freedoms of speech, conscience, religion, and belief. Moreover, residents are exempt from mandatory military service.

An Armenian residence permit offers increased freedom and options, acting as a valuable "insurance policy." It can also facilitate access to banking services and investment opportunities, including permanent property and land ownership rights. If you choose to become an Armenian citizen, dual citizenship is expressly.

STEP-BY-STEP PROCESS. TIMELINE. DOCUMENTS. COSTS

If you are considering obtaining an Armenian residence permit as an investor, you will need to follow these steps:

Step 1: Either travel to Armenia or send the necessary documents (including a power of attorney and the original passport) to Armenia for remote application.
Step 2: Transfer the investment amount (takes 2-5 days).
Step 3: Register the investor's share with the government (takes 2-3 days).
Step 4: Submit your residence permit application. For remote applications, mail your original passport. Your passport will be returned after a few days (1-2 days for in-person applications or approximately 2-3 weeks for remote applications).
Step 5: Await the examination and approval of your residence permit application (takes 40-50 days).
Step 6: We will collect your residence permit and deliver or mail it to you (takes 1 day).

The entire process typically spans 2-3 months, depending on whether you apply in person or remotely and your specific circumstances.

To apply, you will need a valid passport; a medical check certificate and photographs may also be necessary. You will need to provide proof of address or employment, police clearance certificates, bank account statements, reference letters, health/travel insurance, or tickets.

Remember to account for legal fees and other expenses, such as government fees, mailing, translation, and notarization. For additional information, do not hesitate to contact us.

REMOTE APPLICATIONS. TYPES OF RESIDENCE PERMITS

If you are applying for an Armenian residence permit, your lawyer or representative can file the application remotely. However, on the day of the application, we will need to present your original passport to the immigration officer. This means that if you are applying remotely, you will need to mail your passport to Armenia via a courier service like FedEx, DHL, or UPS for a few days. Your passport will be mailed back to you immediately after the application is filed.

Applications for temporary (1-year) or permanent (5-year) residence permits must be filed at the Immigration Office. Please note that Armenian embassies typically do not process residence permit applications, except in the case of a special 10-year residence permit.

TAX CONSEQUENCES OF BECOMING A RESIDENT

It is important to note that obtaining a residence permit (temporary, permanent, or special) does not automatically make you a "tax resident." Tax residency is regulated by tax laws, not immigration laws. This means that it is possible to hold a residence permit without becoming a tax resident, and vice versa.

Armenia does not typically tax individuals' capital gains on the sale of securities or real estate, or other assets, regardless of whether those gains are generated in Armenia or elsewhere. Certain forms of income, such as insurance and pension payments, are also exempt from taxes. Additionally, there are no taxes on gifts, inheritance, or net worth.

However, there is no general rule that exempts a tax resident from paying taxes on income generated outside of Armenia.

You may also be able to obtain documents such as proof of registered address in Armenia, a social security number, a taxpayer identification number, or a tax residency certificate.

Address registration
Armenian residents are generally required to have a registered address, which is used for official notifications and other purposes. Foreigners typically have 15 days after receiving their residence permit to register their local address and seven days to report any changes of address to the local police office. To register a local address, you will need to provide proof that you reside in Armenia. This can be a certificate of ownership or lease of a residential property, or the owner's consent to registration. If none of these documents are available, you may request the local police to conduct a factual check, which usually takes up to two weeks, to confirm your residency at the stated address.
Completing the address registration step can also be beneficial for the bank account opening process, as it's a requirement of most banks.

Social Security Number
Once your address is registered, you may apply for a social security number (SSN), which may be useful in your dealings with various government agencies, banks, employers, etc. The SSN is issued in the form of a separate paper and can be obtained immediately upon application at the local police office.
In practice, individuals who are lawfully present in Armenia have the opportunity to obtain a Social Security Number (SSN) using their passport.

Taxpayer Identification Number
Individuals receiving profits from commercial organizations are mandated to obtain a Taxpayer Identification Number (TIN). This is imperative, as the distribution of profits entails the obligation to remit income tax on dividends, necessitating the possession of a TIN for tax payment purposes. Furthermore, certain foreign banks may request the Taxpayer Identification Number as a means to authenticate their association with the Republic of Armenia.
The application process primarily involves the submission of a TIN application along with a copy of the passport.

Tax Residency Certificate
In general, an individual can become a tax resident of Armenia if their stay in the country extends to 183 days or more. Alternatively, a petition can be submitted to the tax office to procure a tax residency certificate, even if the stipulated duration of 183 days is not met. However, the application must substantiate that the center of vital interest is situated in Armenia, signifying that personal or business affiliations with Armenia outweigh those with any other country. It is crucial to note that such certificates are issued exclusively for a specific tax year and explicitly cite the pertinent double tax treaty.

To initiate the application for a tax residency certificate, the applicant is required to submit a comprehensive set of documents. These include statements detailing income from foreign sources, copies of all passport pages, a calculation table reflecting the individual's presence within the Republic of Armenia, or a written justification outlining the localization of the center of vital interests within the territory of the Republic of Armenia, supported by relevant documentation.

The issuance of the tax residency certificate is typically completed within two business days.

FAMILY MEMBERS AND DEPENDENTS

If you hold an Armenian residence permit, your immediate family members may also be eligible for residency. Specifically, you can sponsor your spouse, your children (whether they are minors or adults, with no age restrictions), and your parents (also with no age restrictions). You do not need to demonstrate that your family members are financially dependent on you.

Furthermore, if you have a permanent (long-term) or special residence permit, you can also sponsor your siblings, grandparents, and grandchildren.

Citizenship by Residency

If you have been living in Armenia permanently for the past three years, you are eligible to apply for Armenian citizenship. However, the term "permanent resident" is not clearly defined by the Citizenship Law. In practice, the police will accept and process a citizenship application if the applicant has maintained an Armenian residence permit (temporary, permanent, or special) during the three-year period.

In addition to the residency requirement, you will need to pass a test on your knowledge of the Armenian Constitution. This is a multiple-choice test with 33 questions, and you only need to answer 17 of them correctly to pass. The test is administered in Armenian, and you will be asked to fill out a biographic form in Armenian as well. This means that you may need to spend some time (perhaps a couple of months) learning basic Armenian.

It is important to note that meeting the above requirements does not guarantee that your citizenship application will be approved. If your application is rejected, you can reapply after one year. Additionally, if your application is rejected, you can appeal the decision in court. However, administrative court proceedings are likely to take up to one year or even longer.

Alternative Ways to Qualify for Residency

If you are a digital nomad, freelancer, remote worker, or online business owner looking to become a resident of Armenia, you will need to meet certain requirements. Specifically, you must be engaged in business activities in Armenia, which means registering with the Armenian tax office as a sole proprietor (or register an LLC). However, your work does not have to be connected to Armenia, and there are no requirements to have Armenian clients or suppliers.

It is important to note that you will need to report at least some income and pay taxes in Armenia. The tax rates will depend on your income or sales, with independent service providers typically opting for the "turnover tax" regime, which levies a 5% tax on reported income. Under the "microbusiness" regime, it may be possible to pay 0% tax if your annual income does not exceed around $60,000, though not all types of activities qualify for this treatment. You may also be subject to social (pension) contributions and military stamp duties after your residence permit is issued.

For example, let us say you offer online classes. Since educational services can be treated as a "microbusiness," you will be exempt from taxes on income of up to around $60,000 per year, and you will not have to make social (pension) contributions. However, you will need to pay monthly military stamp duties of $4 to $25 after your residence permit is issued.

On the other hand, if you are a business consultant, consulting services cannot be treated as a "microbusiness," so you will have to pay a 5% turnover tax on your income of up to $280,000. If you report income from consulting services of $1,000 per month, you will pay $50 in turnover tax (5% of $1,000) and a flat fee of $13 in income tax. After your residence permit is issued, you will also need to pay a flat social (pension) contribution of $13 and a monthly military stamp duty of $5. Your total monthly tax bill will be $81 ($50 + $13 + $13 + $5).

Purchasing an existing business or a share in one is another way to qualify for residency, but it is typically more complicated due to due diligence checks and appraisal matters. You can find offers to invest in small and medium-sized businesses at https://investin.am/investment-projects/, and a few large companies are listed on the Armenian stock exchange at https://amx.am/en/instruments/shares.

Just owning real estate will not qualify you for a residence permit, but turning the property into an income-generating business asset can do the trick. Typically, this is done by purchasing property and renting it out, You will still have to register as a taxpayer in Armenia and pay taxes on your income.

Finally, owning a small vineyard, orchard, or other agricultural operation can also qualify you for residency. Owning vacant land by itself is not sufficient, but purchasing an operational farm will likely be enough. While the size of the operations is not very important in principle, the profitability of the business will largely depend on its scale.

Investment Opportunities

Armenia presents a diverse range of investment opportunities characterized by advantageous conditions for both domestic and international investors. Whether the focus is on real estate or financial markets, the nation boasts a streamlined and investor-friendly process, fostering increased capital inflow. The conducive investment environment reflects Armenia's commitment to facilitating and attracting diverse investments, positioning the country as an appealing destination for global investors.

Real Estate

The real estate market in Yerevan has experienced rapid appreciation in recent years, with the average price of one square meter in central Yerevan rising from $885 in December 2016 to $1,651 in May 2022, an increase of 87% in less than six years. This growth can be attributed to the growing economy, increased tourism, and demand for new housing among locals, as well as subsidized mortgage loans and the appreciation of the local currency in 2022.

The process of purchasing a property in Armenia is efficient and quick, with the country ranking 13th out of 190 countries on the World Bank's "Registering Property" index. It is even possible to buy properties remotely without visiting the country.

Armenia does not have gift or estate taxes, and capital gains on the sale of real property by an individual are generally not taxed. Property tax rates range from 0% to 1% of the cadastral value, which is normally significantly lower than the market value. Stamp duties are not applicable, and only small official fees are paid, which do not depend on the value of the property. Rental income up to 60 million Armenian drams (approximately $155,000) per year is taxed at 10%, and rental income exceeding that amount is taxed at 20%.

Foreigners can own 100% of real estate in Armenia, and they have the same rights as locals to acquire, hold, lease, sell, bequeath, and otherwise dispose of their property. There is no need for foreigners to have a residence permit or any other links to Armenia. Overall, the real estate market in Armenia offers great opportunities for foreign investors seeking to diversify their portfolio and take advantage of a growing economy.

You might want to consider buying off-plan property from real estate developers and see non-taxable capital gains of 20-30% after the construction is completed. There are many construction projects to choose from, and you can find more information on websites such as ArmEconomBank, ACBA Bank, Inecobank, Ameriabank, Red Invest Group, and Construction.am.

Land, Vineyards, and Orchards

Lands in Armenia are classified according to their designated usage (zoning), including agricultural, residential, industrial, energy, forest, and more. Foreigners can directly own household and gardening plots, lands designated for construction and maintenance of a homestead, and residential and commercial development lands. Other types of land, such as agricultural land, can be owned through a legal entity. Special residence permit holders can own all types of land. There are some restrictions on building on agricultural land, although small buildings up to 30 sq. m. are allowed. In most rural communities, structures of up to 300 sq. m. can be built on land exceeding 10,000 sq. m. It may also be possible to change the zoning of land with the help of the local municipality.

If you are interested in agricultural investments, you might consider fruit farming or wine growing, which are one of the oldest economic sectors in Armenia, with over 60,000 active entities in this industry. The most popular forms of cultivation are grape, apricot, and peach. Between 1998 and 2016, the territory of orchards doubled, and the yield increased by 14.5% between 2008 and 2017 due to implementation of innovative technologies. You may choose to buy an existing farm or set up a new one, and you may be eligible for a government subsidy. Two types of subsidies are available: compensation of up to 50% of costs incurred in setting up a vineyard (orchard) or a low-interest rate loan (2%) for a maximum amount of $2.9 million for vineyards, $5 million for orchards, and $4.7 million for berry farms.

Bank Deposits, Stocks, Bonds, and Gold

You may qualify for residency in Armenia by purchasing an existing business or a share in one. However, such transactions can be more complicated due to the necessary due diligence checks and appraisal matters. If you are interested in investing in small and medium-sized businesses, you can find offers on the Invest in Armenia website: https://investin.am/investment-projects/. The Armenian stock exchange also lists a few large companies: https://amx.am/en/instruments/shares.

Although few companies are listed on the Armenian stock exchange, many issue corporate bonds with relatively high yields (in excess of 11% in local currency and 6% in USD). The Armenian government also issues both short-term and long-term bonds, typically with annual interest rates above 10%. You can find more information on the stock exchange website and at moneymarket.am.

Interest paid on bank deposits in Armenia is relatively high, with annual rates up to 10% for local currency deposits and 5% for USD deposits. Deposits can also be made in euros and Russian Rubles, and information on current deposit interest rates is available at moneymarket.am. Although the Armenian dram has appreciated against the USD by around 20% in 2022, exchange rates have been mostly stable over the last few decades. Banks typically withhold a 10% tax on interest payments. You can also find information on current prices of gold bars (ranging from 1 gram to 1,000 grams) at moneymarket.am. Most banks offer safety box services, allowing you to purchase gold bars and keep them in a secure location.

All banks in Armenia are licensed and closely regulated by the Central Bank of Armenia. A deposit insurance system is also in place, covering deposits up to AMD 16 million (around $41,000) for local currency deposits and AMD 7 million (around $18,000) for foreign currency deposits. However, the system has never been used as there have been no bank runs in recent history.

Administrative Processes

Company registration

Setting up an LLC in Armenia is a quick and uncomplicated process, which can be completed entirely remotely. There are no limitations on foreign ownership or management of companies, no minimum investment requirements, and no renewal fees to worry about. Shareholders are afforded limited liability and can utilize the LLC structure for purposes of asset protection or tax optimization. Armenia also boasts favorable tax regulations for small businesses, with many being completely exempt from taxes. Furthermore, IT companies can benefit from special tax incentives.

Benefits: Registering an LLC in Armenia has several advantages, including:

Fast registration process (typically within a couple of days)
Shareholders enjoy limited liability
Minimal documentation requirements (only passports are needed)
No restrictions on foreign ownership or directorship
No minimum capital requirements
No need to engage local partners, agents, managers, secretaries, etc.
Permanent existence with no renewal fees
Bank accounts available in various currencies
No restrictions on repatriation of profits and capital

For more information, please see the page on incorporation.

Taxation: Armenia offers favorable tax rates for small businesses. Many types of businesses with annual sales below AMD 24 million (equivalent to around $62,000 as of March 2023) are exempt from income tax. Other businesses with annual sales below AMD 115 million (around $297,000) are also exempt from income tax but are subject to a sales tax (turnover tax) of 5% or less. Newly registered IT companies and firms operating in free economic zones, industrial zones, and certain border towns and villages are also eligible for tax exemptions.

An LLC registered in Armenia is considered a tax resident of Armenia and is taxed on its worldwide income. Tax rates are generally the same regardless of whether income comes from Armenia or another country.

Asset Protection: An Armenian LLC can be used as a holding company for assets. Setting up a tax-exempt "microbusiness" LLC can be advantageous for receiving passive income, such as dividends, of up to AMD 24 million (around $62,000) annually. Additionally, income from the sale of financial assets is not subject to taxation, regardless of the amount. However, it is important to avoid being classified as an "investment company," which requires licensing.

While it is possible to use an LLC to own real estate in Armenia or other countries, Armenian tax laws generally make it more beneficial to own such property as an individual to avoid capital gains tax on sales between individuals.

Armenian law does not recognize trusts, so assets are typically held through an LLC or other corporate structures such as a joint-stock company, foundation, or consumer cooperative. Nominee and corporate shareholders and directors are allowed, but companies must file annual statements disclosing the ultimate beneficial owners (UBO).

Banking

Armenia has a well-established banking system, with 18 privately owned banks regulated by the Central Bank. Among them, HSBC is an international bank, while many local banks have foreign capital from countries such as Russia (VTB), France (ACBA), Lebanon (Byblos, ID), Argentina (Converse), Iran (Mellat), and others. Armenian banks offer modern banking services, including online and mobile banking, debit and credit cards (Visa, MasterCard, AmEx), accounts in various currencies (USD, EUR, CHF, GBP, CAD, AED, RUR, JPY), gold metal accounts, wealth management, private banking, and safety deposit boxes. They also have low charges, strong privacy, and high-quality customer service.

health insurance

In Armenia, individuals are not required by law to have health insurance. However, all six licensed insurance companies offer health insurance, with annual rates usually ranging between $300 to $600 per person. These companies are SIL InsuranceLiga InsuranceNairi InsuranceIngo ArmeniaReso, and Armenia Insurance.

medical care for foreigners

  1. Emergency psychiatric medical care and service for foreign citizens is provided free of charge.
  2. For citizens of the Commonwealth of Independent States (CIS) and the Eurasian Economic Union (EAEU), urgent medical assistance is extended without impediments or fees in instances of acute health crises, accidents, poisoning, injuries, childbirth complications, and urgent situations during pregnancy. This service is delivered comprehensively, irrespective of the organizational-legal forms, departmental affiliation, or ownership structures of the medical and preventive institutions involved.
  3. Citizens are granted free and full medical assistance until the threat to the patient's life or the health of those around them subsides, and transfer becomes feasible. Subsequently, medical care is provided on a fee basis.
  4. For foreign citizens and stateless persons residing in Armenia, the option to select a Primary Health Care (PHC) doctor is available. By registering with a chosen PHC doctor, individuals can access primary care services on a fee basis, as outlined in the price list established by the medical institution. Exceptions may apply as stipulated by contracts with the Republic of Armenia (RA) International.
  5. Foreign citizens with special residence status in the RA, refugees, and asylum seekers receive primary care services through the state order. These individuals register with their chosen primary care physician following the established procedure.
  6. The medical assistance and service of foreign citizens with diseases included in the list of diseases posing a threat to the environment are organized regardless of the existence of relevant interstate contracts/agreements within the framework of the state order. The list includes such infectious diseases as all types of tuberculosis, HIV infection, etc.
  7. In RA, in the case of HIV infection, medical care is provided free of charge and in full, including planned treatment.
  8. From the moment of detection of the coronavirus infection, medical assistance is provided free of charge within the framework of the state order. Vaccination against coronavirus infection is organized free of charge for foreign citizens.

driving license

Obtaining an Armenian driving license is a two-step process that involves taking a computer-based driving theory test and a practical driving test. The theory test questions are available in Armenian, Russian, English, Arabic, and Farsi. There are a total of 1,116 questions, and the test consists of 20 questions with only two incorrect answers allowed. To register for the test, you can visit the website roadpolice.am and wait for notification about the time and place of the test. If you pass the theory test, you will be allowed to take the driving test immediately. In addition, it is possible to exchange your foreign driving license for an Armenian one if your license is issued by a country that is party to the 1968 Vienna Convention.

marriage registration

Foreigners can get married in Armenia without any requirement to live or have ties to the country. The registration process is typically quick and can be completed in as little as two business days. However, both individuals need to provide a "non-marriage" certificate from their country of permanent residence to confirm their marital status. If a non-marriage certificate cannot be obtained, an affidavit may be used instead. These documents must be legalized, either by Apostille or consular legalization, and translated into Armenian before they can be submitted to the Armenian Ministry of Justice. Remote registration with a power of attorney may also be possible.

What Clients Say

Why Choose Us

Decade of Excellence

Over 10 years of specialized experience in immigration and business setup.

Tailored Solutions

Our team of locally licensed, English-speaking attorneys specializes in immigration, incorporation, and compliance matters, providing bespoke legal strategies for each client.

Fast & Fluent Communication

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Client-Centered Approach

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Reputable & Reliable

Established in 2012, Vardanyan & Partners has built a reputation for excellence and reliability. With our team, you are not just hiring attorneys; you are partnering with insured legal experts committed to your success.

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. 


Family Covered

Residents can sponsor extended family for residency (parents, siblings, grandchildren, etc.)

 

Citizenship Path

After living in Armenia for three years, citizenship can be obtained. Dual citizenship is allowed.

Nerses Isajanyan

Managing Attorney

LL.M., Georgetown University

Licensed Attorney, Armenia: License no. 903

Licensed Attorney, New York: License no. 5148945

Our firm's reputation rests on more than just legal expertise. We pride ourselves on the values of honesty, transparency, and an unwavering commitment to client care. We recognize the unique opportunities and challenges Armenia presents, and we are here to guide you through them.

For inquiries or to schedule a consultation, you may contact us at [email protected] or +374.99.00.11.67. I look forward to collaborating with you on your journey in Armenia.

Where to find us

Nestled in the heart of the Davtashen district in Yerevan, our office is a stone's throw away from the Migration Service building, ensuring seamless coordination on immigration matters. If you refer to the map above, you will pinpoint our exact location. For those journeying from the city center, anticipate a brief 20-30 minute taxi ride to reach us. We look forward to welcoming you and addressing your legal needs.

Address

4/3 Pirumyanner, 4th Floor, Suite 12 , Yerevan, 0054, Armenia

Phone

+37499001167

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