Types of Residence Permits. Business owners can qualify for temporary (1-year), permanent (5-year), or special (10-year) residence status. If you are an owner of a relatively new business it is generally advisable to apply for a temporary (1-year) residence permit first. If your business is well established and has a good history of tax payments you may consider applying for a 5-year permit. Special 10-year passports are generally available to owners of larger businesses that created a substantial number of local jobs. 

Corporate Form and Ownership Size. A business owner may be a "private entrepreneur" or a shareholder of a for-profit company (LLC, JSC, cooperative). The law does not set the minimum size of the share that qualifies a shareholder for residence. Thus, even small shares of 5% or 1% could be sufficient, provided that the ownership is real.

Business Type. The nature of the business (sale of goods, services or use of property) is not very important and the government does not prefer one type of business over the other. However, the nature of the business will predetermine the type of evidence and supporting documents you will have to provide. For example, if you open a retail store, the immigration officer will expect you to at least possess the necessary commercial premises, properly equip the store and have the inventory (goods) stored and available for sale. If, on the other hand, you are an IT specialist working from home, the officer will expect you to show your workplace and explain exactly what services you provide, who are your customers, how do they pay you, what the results of your work look like, etc.   

Office Space. It is not required to own or lease an office or other business premises. However, for certain businesses (e.g. retail store, restaurant) this is an obvious business necessity. Working from home is allowed. Although having separate business premises may look better it is not recommended to rent such a place just for the sake of making a good impression on the immigration officer. 

No Work Permit. As a business owner, you do not need a work permit or other permits to apply for residence. 

Minimum Investment. There are no minimum investment requirements. However, if your business is more passive in nature (see section #3 on investors) the amount of investment shall be large enough to generate meaningful returns. 

Minimum Income (Turnover). There are no minimum turnover or income requirements. However, as a general rule, the income from the business should be sufficient to cover the living expenses of the applicant. Otherwise, there is a risk that the business will be treated as non-genuine and the application will be rejected.  

Local Employees. Having Armenian employees will certainly make a good impression and will strengthen your case. However, job creation is not a requirement to qualify for residency, and it is possible to achieve that status by being a sole proprietor or the only employee of your business. 

Business Plan. A business plan may be helpful but is generally not required because 1) residence is issued to owners of businesses that are already operational, and 2) the assessment of the facts of your case (including the interview with the security officer) will probably take 10-20 miutes and the officer will not have enough time to read the business plan and go into the details. 

Interview with Immigration (Security) Officer. Typically, an immigration interview is held with the business owner 1-2 weeks after the residence permit application is filed. The interview is held by an officer of the national security service in person or via a phone call with the business owner or his/her attorney. During the interview the security officer will establish if the information submitted by the applicant is accurate, in particular, whether the business is a real operational business, the ownership of the business is genuine, etc. 

The security officer may check the supporting documents (e.g. business registration documents, lease agreement, contracts, invoices, payroll documents, licenses and permits (if any), website and marketing materials, tax returns, bank account statements, etc.). However, the officers tend to rely more on verbal communication and take a common sense approach to assess the case.

Tax Payments. Payment of taxes is an important factor in determining that the business is real and operational. If the business does not generate income or does not pay taxes on its income the likelihood of rejection of the residence permit application is very high. 

Freelancers and owners of online businesses can also qualify for a residence permit in Armenia. The law does not require the applicant to have local clients or to show that the income is received from Armenian sources. Same rules applicable to regular business owners (see section #1) will also be appliable to freelancers and online business owners. In particular, an application will be accepted only if the freelancer or the business owner is registered as a taxpayer in Armenia (e.g. as a sole proprietor, LLC owner, etc.). In order to qualify for a residence permit the freelancer (online business owner) would have to report foreign income to the Armenian tax authorities and pay taxes on it. 

Investors can also qualify for a residence permit in Armenia on the same terms as the business owners. The law does not specifically require the applicant to be actively engaged in day-to-day management of the business. Therefore, the same rules applicable to regular business owners (see section #1) will also be appliable to investors.

Real Estate Investment. Owning real estate by itself will not qualify you for a residence permit. However, you have the option of 1) developing real estate or 2) purchasing and operating rental property. You should qualify for residency if you turn the property into an income-generating business asset. 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%).

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

Making a donation or other charitable contribution does not automatically qualify you for residency. However, a donation coupled with your participation in a social business may be sufficient to become a resident.

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. However, a legalized (Apostille or consular legalization) birth or marriage certificate (or equivalent document) needs to be shown to establish the family relationship.   

Moreover, holders of permanent (long-term) and special residence permits can also sponsor their siblings, grandparents and grandchildren. 

Family members are normally issued only temporary (one-year) residence permits even if the main applicant has a permanent (five-year) or special (ten-year) residence permit or is an Armenian citizen. In the last two cases (i.e. where the main applicant is an Armenian citizen or special residence) the family members can also qualify for a 5-year permit if they have already been residents of Armenia for three years. 

It is generally not possible to apply simultaneously for the residency of the main applicant and his/her family members. Instead,  family members file their applications after the main applicant's residence permit is issued. Hence, there is a need to properly plan the application process in advance, especially when it comes to extending the permits. 

Passports for children may be issued without your presence to your lawyer or other representative in Armenia to whom you have issued a power of attorney. 

Applications for temporary (1-year) or permanent (5-year) residence permits shall be filed at the Immigration Office - the Passport and Visa Department of the Armenian Police ("OVIR"). It is not possible to apply for such residence permits at the Armenian embassies abroad. Applications can be filed by your lawyer or other representative who has a power of attorney. 

Your original passport is one of the documents required to be presented to the Immigration Office. If it is not possible for you to travel to Armenia you would have to mail your original passport. It can be returned to you immediately after the application is filed. 

Applications for special (10-year) residence permits can be filed at the Immigration Office or at an Armenian embassy abroad. It is possible to file an application for a special passport remotely by giving a power of attorney to your representative, however you are required to be physically present in Armenia at the time of the application. 

There are no requirements to spend a certain number of days in Armenia to maintain your residence status. It is generally possible to apply for and extend your residence permit remotely, please check the previous section for more details. 

Government fees range from around $210 to $300, depending on the residence permit type. Immediate relatives of Armenian nationals are generally exempted from government fees. Reduced rates apply to US nationals on reciprocity basis. Government fees are refundable in the event the application for residence permit is rejected (but not if withdrawn by the applicant). 

Please note that in addition to the government fees you may have to incur other expenses related to translation of documents, medical checks, photographs, etc. Legal fees will also be applicable if you plan to hire a lawyer to represent you before the immigration authorities. Please fill out the form above for a free estimate/quotation. 

Residence permits have to be renewed (extended) from time to time. Temporary permits are renewable every year, while permanent (long-term) and special residence permits are renewable every five and ten years respectively. 

The application for renewal shall be filed not later than 30 days before the expiration of the current permit. In case of special permits it is recommended to apply at least 60 days before the expiration. If there are family members (dependents) the main applicant should apply even earlier (60-75 days in advance) to allow for sufficient time to process both his/her and the dependents' applications. 

Similarly, employees need to renew their work permits before they apply to extend their residence permits. 

The procedure of renewal is similar to that of the original application. For example, a business owner would still have to be interviewed by an immigration officer, show proof of active business operations, etc. (see section 1 above for more information).

It is not required to spend a certain number of days in Armenia to extend the residence permit. Moreover, it is possible to apply for extension remotely.

There are no restrictions on how many times a residence permit can be extended. 

The application of a residence permit is normally rejected if the security officer concludes that the applicant misrepresented his situation, provided false documentation, poses a risk to the security of the country, etc. The rejection letter is mailed to the applicant's address and grants him/her a certain period of time (normally two months) to leave the country voluntarily.

If the applicant fails to leave the country voluntarily the Police will initiate deportation proceedings and will send the case to the court. The foreigner may also be arrested and placed in custody for up to 90 days. Deportation can also result in a three-year ban to enter the country. 

The alternative to leaving the country is to appeal the rejection in court. After the case is properly filed with the court the foreigner should be allowed to stay in the country while the case is pending. Court proceedings may be quite lengthy and take many months or even years. 

If the application is rejected the applicant can re-apply for a residence permit only after one year. 

Temporary and permanent residence cards are issued in the form of separate paper documents (not plastic cards). A residence card has the photograph of its holder and serves as an identification document. You may keep it in your passport or carry it separately. It is not allowed to laminate the residence card as it may become necessary to write annotations or put stamps on the card. The residence card can be collected by your lawyer or other authorized representative and mailed to your foreign address if you are not present in Armenia. 

The residence card also shows the number of your passport. If you change your passport it may be needed to also change your residence card (or the immigration officer will make an annotation on the card). If your residence card is damaged or lost you can apply for its re-issuance. In that case you will have to pay a government fee of 12,000 drams (around $24) and the new card should be issued within a few days. 

The special residence permit (passport) has a validity of ten years and can be extended indefinitely for 10-year increments. It looks different from temporary/permanent residence permits as it is issued in the form a passport, not a card. It allows its holder to travel freely to and from Armenia without a visa, to live, work, study, do business and engage in any other lawful activity in Armenia without work permits or other papers. One notable advantage of the special passport is that its holder can own agricultural and other land directly in his/her own name, without the need to establish a legal entity.

In practice special passports are issued to foreigners of Armenian origin, i.e. ethnic Armenians. In exceptional cases special passports can be issued to non-Armenians who are engaged in economic or cultural activities in Armenia. Children under 16 can also get special passports. The time required to obtain a special passport is around 60 days.  

Armenian residents are generally required to have a registered address․ Registered addresses are used for serving official notices and other purposes. Foreigners typically have 15 days after the residence permit is issued to register their local address and 7 days to register the change of address with the local police office. To register a local address you will need to show proof that you reside in Armenia. It can be a certificate of ownership or lease of a residential property or the owner's consent to the registration. If none of these documents are available you may request the local police to make a factual check (normally takes up to two weeks) and confirm that you actually reside at the address in question. 

After your address is registered you may apply for and get 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 it is issued immediately upon application by the local police office. 

Obtaining an immigration permit (temporary, permanent or special residence permit) does not directly affect your tax status. The "tax residency" is a different concept that is regulated by tax laws, not immigration laws. 

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, vice versa, it is possible to become a tax resident without holding a residence permit. 

Armenia does not tax 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. However, such taxes are rarely enforced in practice because there is no universal requirement for individuals to file tax returns. 

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.

Please contact us if you need more information about tax regulations in Armenia.