Armenia Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

Armenia has a favourable tax regime for wealth transfer: there is no inheritance tax, no estate duty, and no death tax on assets transferred upon death. Gifts between immediate family members are also exempt. However, gifts to non-family members are treated as taxable income of the recipient and subject to the flat 20% IIT rate. The absence of inheritance tax makes Armenia an attractive jurisdiction for holding assets, though other tax considerations (such as capital gains tax on eventual disposal by heirs) apply. The Civil Code governs succession, including rules for wills and intestate succession.

No Inheritance Tax

Armenia does not impose any form of inheritance tax, estate duty, or death tax. Assets transferred upon death pass to heirs free of any tax liability. The following assets are not subject to tax upon inheritance:

• Real estate — land, houses, apartments
• Bank deposits — cash and savings accounts
• Securities — shares, bonds, Treasury bills
• Pension accounts — cumulative pension balances
• Business assets — company shares, business interests

Heirs inherit the deceased's cost base for capital gains purposes (no step-up in basis). This means if the heir sells an inherited asset, they pay capital gains tax on the full gain from the original acquisition price.

Gift Tax — Immediate Family Exempt

Gifts between immediate family members are exempt from gift tax. Immediate family includes:

• Spouse
• Parents and children (including adopted children)
• Siblings
• Grandparents and grandchildren

The exemption applies regardless of the value of the gift. Cash, real estate, shares, and other assets may be transferred between these family members without any tax consequences. However, the transfer must be properly documented (notarised gift agreement for real estate). For the donee, the gift is not considered taxable income.

Gift Tax — Non-Family Transfers — 20% IIT

Gifts to persons outside the immediate family circle are treated as taxable income of the recipient. The recipient must include the fair market value of the gift in their annual IIT return and pay tax at 20%. Key points:

• The donor is generally not subject to tax; the recipient bears the tax liability
• The taxable amount is the fair market value of the gifted property at the time of transfer
• The recipient must file an annual tax return reporting the gift as income
• Gifts to charitable organisations registered in Armenia are exempt
• There is no annual gift exemption for non-family transfers (the full value is taxable)

Wills & Probate in Armenia

Armenian law recognises freedom of testamentary disposition. A will must be in writing and notarised to be valid. Key aspects:

• A notarised will is the most common form
• Holographic wills (handwritten) are also recognised if properly executed
• Certain heirs have a right to a compulsory share of the estate (minor children, disabled spouse, disabled parents) — the "reserved portion" is typically 50% of the intestate share
• Probate (acceptance of inheritance) must be initiated within 6 months of death
• Foreign nationals may have wills recognised in Armenia if properly executed under their home country law

The notary public handles the inheritance process, including verifying the will, identifying heirs, and issuing a certificate of inheritance.

FAQs

Do I need to pay tax on inherited property if I sell it?

Yes, if you sell inherited property, capital gains tax at 20% (individuals) applies on the gain (selling price minus the deceased's original cost base — there is no step-up in basis). Holding the property for a long period may result in a significant gain.

Is there a way to avoid gift tax when transferring assets to non-family members?

For non-family transfers, the gift is taxable to the recipient. There is no annual exemption. However, the donor could sell the asset at market value (triggering CGT for the donor) and then give cash, which would still be taxable to the recipient.

Does Armenia recognise foreign wills?

Foreign wills may be recognised in Armenia but must go through the notarial process in Armenia to be effective for Armenian assets. It is generally advisable to execute a separate Armenian will for assets located in Armenia, prepared by a local notary.

Disclaimer

This guide provides general information about Armenian inheritance and gift tax for the 2026 tax year. Succession law is complex. Always consult with a qualified Armenian lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.