2 July 2020
On 25 June 2020, the Armenian parliament adopted amendments to the real estate tax, which will enter into force 1 January 2021. The amendments include that instead of levying the tax based on the assessed cadastral value, the real estate tax will be levied based on the market price, including the following progressive rates for residential and non-residential property in general:
For detached houses and cottages, similar rates apply, although the tax bands are adjusted and a higher rate of 1.5% applies for property with a value exceeding AMD 200 million.
To ease the transition to the new progressive rates, the changes will be introduced through a gradual increase in the amount of tax due. In 2021, 25% of the amount according to the new rates will be due, which will be increased to 30% in 2022, 35% in 2023, 50% in 2024, 75% in 2025, and then 100% from 2026.
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