Armenia is a fast growing country with modern infrastructure, rich history and traditions, beautiful nature, excellent cuisine, and a very low crime rate. Yerevan, the capital of Armenia, is considered to be one of the safest cities in the world. The cost of living is very low compared to other European countries. A list of indicative prices can be found here.

An Armenian residence permit grants you the right to visa-free travel and unrestricted stay in the country and the right to engage in any lawful activities, such as doing business, working, studying or simply retiring. A resident may sponsor his/her family members to become residents. All constitutional rights and freedoms available to citizens (rights to healthcare, social security, education, property and privacy rights, freedom of speech, conscience, religion and belief) are also available to residents, except political rights. Armenian residence permit holders do not serve in the military.

There are no minimum stay requirements and it is possible to obtain and maintain a residence permit without living in the country. It is possible to apply for and extend your residence permit remotely. Only minimum documents are required (no proof of address, police clearance certificates, etc.).

Armenians value individuals freedoms and the government's interference is normally minimal as evidenced by the recent COVID-19 crisis. Having a residence permit in Armenia may give you more freedom and options and can serve as a valuable "insurance policy" as well as make it easier to avail of banking services and other investment opportunities in the country, including investment in property and land with the right of permanent ownership. 

A resident can acquire Armenian citizenship (passport) after three years of residence in the country. Dual citizenship is expressly allowed. 

A residence permit application can be filed remotely by your lawyer or other representative. On the day of the application the applicant's original passport has to be presented to the Immigration Officer, hence the passport will have to be mailed to Armenia (via FedEx, DHL, UPS, or other courier service) for a few days if the application is remote. The passport will be mailed back immediately after the application is filed. 

Applications for temporary (1-year) or permanent (5-year) residence permits shall be filed at the Immigration Office. Armenian embassies generally do not process residence permit applications, with the exception of a special (10-year) residence permit.  

Obtaining an immigration permit (temporary, permanent or special residence permit) does not make you a "tax resident". The "tax residency" is a different concept that is regulated by tax laws, not immigration laws. However, please note that if you are a hired worker or a "private entrepreneur" in Armenia you may have to start making social (pension) and military contributions once you obtain a residence permit.

You normally become a tax resident of Armenia by spending in the country more than 183 days in a year. Thus, it is possible to hold a residence permit without becoming a tax resident and, conversely, it is possible to become a tax resident without holding a residence permit.

As a general rule, Armenia does not tax individuals' capital gains on the sale of securities, gains from the sale of real estate or other assets, irrespective of whether these gains are generated in Armenia or elsewhere. Certain forms of income, such as insurance and pension payments are also exempt from taxes. There are no taxes on gifts and inheritance, net worth tax etc.  

There is no general rule that would exempt a tax resident from taxes on income generated outside of Armenia. 

Obtaining an Armenian residence permit and establishing stronger ties with Armenia can help you to qualify for a non-resident status in your country of origin or other countries and take advantage of certain tax benefits. You may obtain documents such as proof of registered address in Armenia, social security number, taxpayer identification number, tax residency certificate, etc.

If you hold an Armenian residence permit your immediate family members may also qualify for residency. In particular, you can sponsor your spouse, your children (minor or adult, without age restrictions), as well as your parents (without age restrictions). You do not have to show that your family members are dependent on you financially. Moreover, holders of permanent (long-term) and special residence permits can also sponsor their siblings, grandparents and grandchildren. 

You are eligible to apply for Armenian citizenship if you have been permanently residing in the country for the last three years. The Citizenship Law does not define the term "permanent resident." In practice, the Police accepts and processes 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 three-year residency requirement you will have to pass the test on the knowledge of Armenian Constitution. It is an easy multiple-choice test with 33 questions, and you need to answer correctly to only 17 of them to pass the test. The test shall be administered in Armenian language, and you will be asked to fill out an application-questionnaire (biographic form) in Armenian. Thus, you may have to spend a certain time (probably 1-2 months) to learn basic Armenian. Meeting the above requirements does not guarantee that your application for citizenship will be approved. It is possible to re-apply for citizenship after one year. If the citizenship application is rejected it is possible to appeal the rejection in court. Proceedings at the administrative court are likely to take up to one year. 

Making a donation or other charitable contribution does not automatically qualify you for residency. However, a donation coupled with your participation in a social entrepreneurship program may be sufficient to become a resident. For example, under one such program female piglets are supplied to socially vulnerable families in rural areas of Armenia. Each family is given two or more piglets and commits to return twice the number of piglets received within a specified period of time (normally one year). During the project, the families also receive free advice on raising the pigs, veterinary help, and other case-specific assistance (purchasing fees, equipping the barn, etc.). This allows families with no access to credit to start farming pigs. 

It is possible to qualify for residency by purchasing an existing business or a share in an existing business. Such transactions are normally more complicated because of the due diligence checks and appraisal matters.

You can find offers to invest in small & medium businesses here: https://investin.am/investment-projects/. 
A few large companies are listed on the Armenian stock exchange: https://amx.am/en/instruments/shares. 

Owning real estate by itself will not qualify you for a residence permit. However, you should qualify for residency if you turn the property into an income-generating business asset. Normally, this is done by purchasing property and renting it out. You would still have to register as a taxpayer in Armenia (e.g. as a sole proprietor, LLC owner, etc.) and pay taxes on your income (rental income is normally taxed at 10%).

It is possible to qualify for residency by purchasing a small vineyard, an orchard or other agricultural operations. Owning vacant land by itself is not sufficient. However, purchasing an operational farm shall qualify you for residency. While the size of the operations, in principle, is not very important the profitability of the business will largely depend on its scale. 

Apartments in Yerevan have been appreciating rapidly over the last few years. Since 2017 the average price of one sq. m. in central Yerevan rose from $885 (Dec. 2016) to $1,651 (May 2022), which is an increase of 87% over less than 6 years. The increase is mostly due to the growing economy, especially tourism, demand for new housing among locals as well as subsidized mortgage loans and appreciation of the local currency in 2022. 

The process of buying a property in Armenia can take only a few days. Armenia ranked very high – the 13th – among 190 countries on the World Bank’s “Registering Property” index which measures both the efficiency and the quality of the property registration system. By way of comparison, the U.S. ranks 39th, the U.K. – 41st, , France – 99th. It is possible to buy properties remotely without visiting the country. 

Armenia does not have gift or estate taxes. Capital gains on the sale of real property by an individual are generally not taxed. Property tax rates are in the range of 0% to 1% of the cadastral value which is normally significantly lower than the market value. There are no stamp duties. Only small official fees are paid and they do not depend on the value of the property. Rental income not exceeding 60 million Armenian drams (approximately, $140,000) per year is taxed at 10%. Rental income in excess of that amount is taxable at 20%.  

Foreigners can be 100% owners of real estate in Armenia: they can acquire, hold, lease, sell, bequest and otherwise dispose of their property on equal basis with locals. Foreigners do not need to have a residence permit or otherwise show any links to Armenia. 

You may consider buying off-plan property from real estate developers. While such purchases are more risky you are likely to make non-taxable capital gains of 20-30% after the construction is completed.

There are hundreds of construction projects you may choose from. More information is available on these websites:

• Armeconombank
• ACBA Bank
• Inecobank
• Ameriabank
• Red Invest Group
• Construction.am

As a general rule, foreigners can be 100% owners of real estate in Armenia: they can acquire, hold, lease, sell, bequest and otherwise dispose of their property on equal basis with locals. Foreigners do not need to have a residence permit or otherwise show any links to Armenia. 

Lands in Armenia are classified according to the designated usage (zoning) into agricultural, residential, industrial, energy, forest, etc. Foreigners are allowed to directly own household and gardening plots, lands that are designated for construction and maintenance of a homestead, residential and commercial development, etc. Other types of land (e.g. agricultural land) can be owned through a legal entity. There is also an exception for special residence permit holders who can own all types of land. It is generally not allowed to build on agricultural land, with the exception of small buildings of up to 30 sq. m. In most rural communities it is allowed to build structures of up to 300 sq. m. if the size of the land is in excess of 10,000 sq. m. It may also be possible to change the zoning of the land (e.g. agricultural to commercial) with the assistance of the local municipality. 

Vacant lands can be purchased from private owners or municipalities. In 2020, individuals owned 538,860 hectares of land, legal entities - 37,320 hectares, municipalities - 1,024,190 hectares, the national government - 1,373.22 hectares. 

Fruit farming and wine growing are one of the oldest economy sectors in Armenia with more than 60,000 entities active in this industry. Grape, apricot, and peach cultivation are the most popular forms. 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 in which case you may be eligible for a government subsidy. There are two types of subsidies: 1) 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. 

It is possible to qualify for residency by purchasing an existing business or a share in an existing business. Such transactions are normally more complicated because of the due diligence checks and appraisal matters.

You can find offers to invest in small & medium businesses here: https://investin.am/investment-projects/. 

A few large companies are listed on the Armenian stock exchange: 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 issues both short-term and long-term bonds, normally with annual interest rates in excess of 10%. More information is available on the website of the stock exchange and at moneymarket.am.

Interest paid on bank deposits in Armenia is relatively high with annual rates of up to 10% for deposits in local currency and 5% for deposits in USD. You may also make deposits in euros and Russian Rubles. Information on current deposit interest rates is available at moneymarket.am. The local currency, Armenian dram, has appreciated against USD by around 20% in the first half of 2022 but, in general, the exchange rates have been more or less stable over the last decades. Banks normally withhold a 10% tax on interest payments (you do not have to file tax returns in Armenia). 

The same website also publishes information on current prices of gold bars (1 gram to 1,000 gram). Most banks offer safety box services and you may choose to purchase gold bars and keep them in a safety box.

All banks are licensed and closely regulated by the Central Bank of Armenia. A deposit insurance system is also in place (AMD 16 million (around $40,000) for deposits in local currency and AMD 7 million (around $17,000) for deposits in foreign currency) but it has never been used as there have been no bank runs in the recent history.

Benefits. An Armenian LLC offers the following benefits:

• Very fast registration, typically within a couple of days
• Limited liability for shareholders
• Minimum documents (only passports are required)
• No restrictions on foreign ownership/directorship
• No minimum capital requirements
• No need to engage local partners or agents, managers, secretaries, etc.
• Permanent existence with no renewal fees
• Bank accounts in various currencies
• No restrictions on repatriation of profits and capital

Please check the page on incorporation for more details. 

Taxation. Armenia offers favorable tax rates to smaller businesses. Many types of businesses with annual sales of less than AMD 24 million (as of 2022, that is equivalent to around $57,000) are exempt from income tax. Other businesses with annual sales of less than AMD 115 million (around $270,000) are also exempt from income tax but are subject to a sales tax (turnover tax) of 5% or less. 

Armenia also exempts from income tax newly registered IT companies. Zero-tax status is also available to companies operating in free economic zones, industrial zones, and certain border towns and villages. 

An LLC registered in Armenia is considered a tax resident of Armenia and pays taxes on its worldwide income. Armenia does not follow the "territorial taxation" model and the tax rates are generally the same, irrespective of whether the income comes from Armenia or another country. 

It is possible to use an Armenian LLC as an asset holding entity. It may be beneficial to use a tax-exempt "microbusiness" LLC to receive passive income (e.g. dividends) of up to AMD 24 million (around $57,000) per year. Moreover, income from sale of financial assets is not subject to taxation, irrespective of the amount. That being said, one must be careful to avoid being classified as an "investment company" which is subject to licensing.  

While it is possible to use an LLC to own real property in Armenia or other countries, Armenian tax laws generally make it more advantageous to own such property as an individual (no capital gains tax if the sale is between individuals). 

Armenian law does not have the concept of trusts, hence assets are normally owed through an LLC although other corporate structures may also be considered (joint-stock company, foundation, consumer cooperative, etc.). Armenia allows the use of nominee and corporate shareholders and directors but it also requires companies to file annual statements disclosing the ultimate beneficial owners (UBO).

There are seventeen banks in Armenia offering banking services to individual and corporate clients. All the banks are privately owned and regulated by the Central Bank. In addition to the well-known HSBC international bank, many local banks are with foreign capital from Russia (VTB Bank), France (ACBA Bank), Lebanon (Byblos Bank, Anelik Bank), Argentina (Converse Bank), Iran (Mellat Bank) and other countries.

Armenian banks offer low charges, strong privacy and a wide range of modern banking services, including online and mobile banking, debit and credit cards (Visa, MasterCard, AmEx); accounts in USD, EUR, CHF, GBP, CAD, AED, RUR, JPY; gold metal accounts; wealth management and private banking; safety deposit boxes, etc.

Having health insurance is not mandated by law. Health insurance is offered by the six licensed insurance companies. The annual rates are normally between $300 - 600 per person.

• SIL Insurance
• Rosgosstrakh-Armenia
• Nairi Insurance
• Ingo Armenia
• Reso
• Armenia Insurance

It is possible to obtain an Armenian driving license by taking a computer-based driving theory test and a practical driving test. The theory test questions are now available in Armenian, Russian, English, Arabic, and Farsi. There are 1,116 questions in total and the test will consist of 20 questions with only two wrong answers allowed. You will need to register online at roadpolice.am after which you will be notified about the time and place of the test. If you pass the theory test you will be immediately allowed to take the driving test.

It is also possible to exchange your driving license for an Armenian one if your license is issued by a country that is party to the 1968 Vienna Convention.

It is possible for foreigners to register their marriage in Armenia. There are no requirements to reside in Armenia or to show other ties to the country. The registration process is normally  fast and can take as little as two business days. One important requirement is that both spouses-to-be need to present a "non-marriage" certificate from their countries of permanent residence confirming their marital status. Non-marriage certificates may sometimes be replaced by affidavits if the country in question does not issue such certificates. In either case, such documents need to be legalized (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.