The Ultimate Guide to Tax Residency in Armenia for Digital Nomads
Tax residency holds great significance for digital nomads, requiring careful consideration to ensure optimal financial outcomes.
Why choose Armenia for tax residency?
Armenia has emerged as an appealing choice for digital nomads seeking advantageous tax conditions. Notably, the country boasts low tax rates, levying a mere 5% tax on dividends for tax residents, while interest income is taxed at 10%. Moreover, Armenia generally refrains from imposing taxes on capital gains from the sale of securities, real estate, and other assets, regardless of the origin of these gains. Certain income sources, including insurance and pension payments, also enjoy tax exemptions, alongside exemptions on gifts, inheritances, and net worth. Another notable advantage of Armenian tax residency lies in its extensive network of double taxation treaties, spanning approximately 50 countries.
Understanding the requirements for tax residency in Armenia
To establish tax residency in Armenia, it is essential to comprehend the criteria outlined by the Armenian tax authorities. According to Armenian tax laws, two avenues exist for attaining tax residency and obtaining a tax residency certificate, which serves as proof of one's tax residency status. The first path deems an individual a tax resident if they spend a minimum of 183 days in Armenia during a fiscal year.
An alternative route to securing a tax residency certificate involves petitioning the tax office, even without fulfilling the 183-day requirement, by substantiating that one's center of vital interest is based in Armenia. As per the law, the center of vital interests is the place where a person's family or economic interests are concentrated. Specifically, if an individual's family resides in Armenia or if their primary property or main economic (professional) activity takes place in Armenia, the center of vital interests is considered to be in Armenia. In simpler terms, if an individual can establish that their ties to Armenia are stronger than their ties to any other country, they could obtain a tax residency certificate even if they spend less than 183 days in the country.
Tax residency certificate application process
Once one of the abovementioned criteria are met, an individual can apply for a tax residency certificate at the Tax Service of the Republic of Armenia. In order to do so, it is necessary to provide copies of relevant documents indicating income received from abroad, as well as copies of all passport pages. The Tax Service may also require additional documentation as per their discretion.
Alternatively, the application for the tax residency certificate can be submitted through a Power of Attorney, thereby eliminating the requirement for physical presence. Upon submission of the application, a response can be expected within two business days.
It should be noted that the tax residency certificate is issued specifically for the particular year.
Tax obligations for digital nomads in Armenia
Digital nomads who acquire tax residency in Armenia bear certain tax obligations. Generally, upon applying for a tax residence certificate, individuals must declare the income they received from abroad in the respective year. If taxable income has been obtained, an income tax report must be submitted to the State Revenue Committee by April 20 of the subsequent year.
Tax residents are liable for taxes on their worldwide income. However, if taxes have already been paid in the country where the income was earned, individuals are granted a tax credit equivalent to the taxes already paid in that foreign jurisdiction. In other words, if the tax rate in the foreign country surpasses that of Armenia, it is unlikely that any taxes will be payable in Armenia.
Common misconceptions about tax residency in Armenia
The most common misconceptions surrounding tax residency in is that obtaining a residence permit (temporary, permanent, or special) automatically makes you a "tax resident". However, it is crucial to note that tax residency is regulated by tax laws, not immigration laws. Consequently, an individual only attains tax residency upon fulfilling the requirements outlined in this article. Thus, it is possible to possess a residence permit without being a tax resident, and vice versa.
Conclusion: Is tax residency in Armenia right for you?
Tax residency in Armenia can prove advantageous for digital nomads seeking a low-tax jurisdiction that offers an appealing quality of life. The country's straightforward tax system, expansive double tax treaty network, and affordable cost of living render it an enticing destination. Nevertheless, each digital nomad's circumstances are unique, necessitating careful consideration of personal factors, tax obligations, and long-term plans before reaching a decision.
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