Armenia Capital Gains Tax Guide 2026

Overview — CGT Treatment in Armenia

Capital gains in Armenia are not subject to a separate tax regime. Instead, they are included in ordinary income and taxed at the standard rates applicable to the taxpayer. For individuals, capital gains are included in total income and taxed at the flat 20% IIT rate. For companies, capital gains are included in taxable profits and taxed at the standard 18% CIT rate. The gain is calculated as the difference between the disposal proceeds and the acquisition cost, with an inflation adjustment available for long-held assets. Losses on capital assets may be offset against capital gains in the same year and carried forward for up to 5 years.

Individual Capital Gains — 20% IIT

Individuals pay tax on capital gains at the flat 20% IIT rate. The chargeable gain is calculated as: Sale price minus (Acquisition cost + allowable expenses). Allowable costs include the original purchase price, transaction costs (legal fees, registration fees), and capital improvements. An inflation indexation adjustment is available for assets held for more than one year — the acquisition cost is adjusted by the cumulative inflation rate published by the National Statistical Service of Armenia. This reduces the real taxable gain for long-held assets. Gains must be reported in the annual tax return (if the individual is required to file).

Corporate Capital Gains — 18% CIT

Companies include capital gains in their taxable income and pay tax at the standard 18% CIT rate. There is no separate treatment for capital gains versus trading income. The gain is calculated as the difference between the disposal proceeds and the tax-written-down value of the asset. Indexation relief is also available for corporate taxpayers on long-held assets. Capital losses are offset against capital gains in the same year; any excess may be carried forward for up to 5 years and offset against future capital gains.

Exemptions & Reliefs

Several exemptions and reliefs are available for capital gains in Armenia:

• Principal residence — gain from the sale of an individual's principal residence is exempt from IIT, provided the property was held for at least 3 years and the individual has no other residential property
• Securities — gains from the sale of shares listed on the Armenian Stock Exchange (AMX) are exempt from tax
• Government securities — gains from the disposal of government bonds and Treasury bills are exempt
• Inherited assets — no capital gain arises on death; heirs inherit the deceased's cost base
• Gifts — gifts between certain family members are not treated as disposals for CGT purposes

Property & Real Estate Gains

Gains from the disposal of real property are subject to tax at the applicable rate (20% for individuals, 18% for companies). However, the principal residence exemption (see above) is widely used. For investment properties, the seller must calculate the gain and pay the tax when filing the annual return. A notary or state registrar will typically require proof of tax payment or exemption before registering the property transfer. Withholding tax at 20% applies to property sales by non-residents — the purchaser must withhold and remit to the SRC.

FAQs

How is the gain calculated on property sales?

The gain is the sale price minus the acquisition cost (with inflation adjustment). For example: buy land for AMD 10 million, hold for 5 years (cumulative inflation 25%), sell for AMD 20 million. Indexed cost = AMD 12.5 million. Gain = AMD 7.5 million. Tax = AMD 1.5 million (20% IIT) for an individual.

Can I offset capital losses against salary income?

No, capital losses can only be offset against capital gains in the same year or carried forward against future capital gains. They cannot be offset against employment or business income.

What assets are exempt from capital gains tax?

Principal residence (held 3+ years), listed shares on AMX, government securities, inherited assets (no deemed disposal on death), and gifts between close family members.

Disclaimer

This guide provides general information about Armenian capital gains treatment for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Armenian tax advisor or the State Revenue Committee for advice specific to your situation. InvestmentKit does not provide tax advice.