ArmInfo. About 68 billion drams (about $176 million) have already been returned to 'mortgage holders' under the income tax refund program in Armenia.
"Over 7 months of 2025, citizens have been returned more than 67.8 billion drams of income tax in lieu of mortgage interest, which is about 19.8 billion drams or 41.2% more than the same period last year," Eduard Hakobyan, Chairman of the State Revenue Committee (SRC) of Armenia, wrote on social media.
Recall that the program has been in effect since November 2014: citizens who purchase housing on the primary market with a mortgage loan (apartments in new buildings or new private houses) receive an income tax refund in the amount of mortgage interest.
If in 2015, 273 million drams were allocated for income tax refund, then in 2022 the number of beneficiaries was 29,199, and the refunded amount was 36.5 billion drams, in 2023, 51.9 billion drams were refunded to 38,911 beneficiaries of the program. In total, during 2015-2023, 141.1 billion drams were refunded from the state budget to citizens who took advantage of the income tax refund program. In 2024, the figure was 68.6 billion drams. In 2025, the refund amount is expected to reach about 95 billion.
On July 1, 2022, Yerevan started the gradual abolition of the income tax refund system for mortgage loans. The process started from the center of the capital and will be completed by 2025. In early 2024, the Armenian government proposed to reduce the maximum amount of income tax that the state returns to the 'mortgage holder' - no more than 750 thousand within one transaction, instead of the current 1.5 million drams (per quarter), for mortgage transactions from January 1, 2025. In addition, the Armenian authorities want to completely cancel the income tax refund for mortgage loans from 2029. The cancellation will be gradual. Thus, after January 1, 2027, income tax on mortgage loans in the primary market will not be refunded if the property is located in the regions adjacent to the city of Yerevan - Aragatsotn, Ararat, Armavir and Kotayk. From January 1, 2029, tax refunds will not apply to other regions either. The restrictions will not apply to border settlements.
