Starting a business in
🇦🇲Armenia
Checked November 4, 2026 · How we score
Corporate tax
18%
Top income tax
20%
Setup from
$500
all-in, first year
Time to form
3 days
can be done remotely
Taxes in Armenia
| Corporate income tax | 18% 18% on profit under the general regime; 20% VAT applies above the AMD 115 million turnover threshold. Qualifying micro-businesses (turnover up to AMD 24 million, about USD 62,000) benefit from reduced or zero income tax, and licensed high-tech companies can pay 1% turnover tax. |
|---|---|
| Personal income tax (top) | 20% Flat 20% personal income tax on employment income since 2023 (reduced rates apply to employees of qualifying high-tech companies), plus mandatory pension contributions of 5% to 10%. |
| Tax system | Worldwide income |
| Capital gains tax | 20%Gains are generally treated as ordinary income at the flat rate, with exemptions for some listed securities and long-held property; confirm applicability with a local adviser. |
| Dividend withholding (non-residents) | 5% |
| VAT / GST | 20% |
| Social security | Social security is mostly through the stamp-duty and pension-contribution system; high-tech companies benefit from reduced payroll tax rates. |
Forming a company in Armenia
| Usual entity | LLC (OOO) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $500–$2,000 |
| Annual running cost | $800–$3,500 |
| Time to incorporate | 3 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
Founders and employees of Armenian companies can obtain a one-year residence permit that is renewable, and permanent residency is available after several years; Russian, Iranian and CIS citizens enjoy visa-free long stays.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 2/5 (1 = easiest) |
Special tax regimes
High-tech / IT company regime
Licensed IT companies can pay 1% turnover tax instead of profit tax and VAT, and their employees benefit from reduced income tax, under a regime reported to run to 2031.
Micro-business status
Entrepreneurs and small companies with annual turnover up to AMD 24 million are exempt from profit tax and VAT, with only simple reporting.
Turnover tax regime
Small businesses with turnover up to AMD 115 million can pay a flat turnover tax instead of profit tax and VAT; rates vary by activity.
Pros and cons
Why founders pick Armenia
- 1% turnover tax for qualifying IT companies
- Online company registration in about 3 days
- Low setup and accounting costs
- Educated tech workforce and easy residency
Watch out for
- Banking and payment processors for non-residents are limited (Stripe not supported)
- Tax rules and thresholds change frequently
- Geopolitical risk in the region
- Reputation and treaty network weaker than the EU
Best for: Software and IT service companies using the 1% regime · Freelancers and micro-businesses under AMD 24 million · Remote founders wanting a low-cost non-EU base
Armenia: common questions
What is the corporate tax rate in Armenia?
The standard profit tax is 18%. Qualifying IT companies can instead pay 1% turnover tax, and entrepreneurs and companies with annual turnover up to AMD 24 million (about USD 62,000) fall under the micro-business regime with little or no income tax.
How do I register an LLC in Armenia as a foreigner?
You can register an LLC online through the State Register in about 3 working days, usually with a local agent and an electronic signature. Foreigners can own 100% and be sole directors, and you need an Armenian legal address and a bank account.
What is the Armenian IT tax regime?
Companies recognised as high-tech by the authorities and earning at least 90% of revenue from qualifying activities can choose a 1% turnover tax that replaces profit tax and VAT, while their employees pay reduced income tax. Eligibility and the regime's end date should be confirmed with the State Revenue Committee.
Does Armenia have a digital nomad visa?
Not as a dedicated visa. Many nationalities can stay visa-free for up to 180 days a year, and anyone who forms a company or is employed by one can apply for a renewable one-year residence permit.
Sources
- State Revenue Committee of Armenia
- Armenian State Register (e-register)
- PwC Worldwide Tax Summaries - Armenia
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.