Armenia Rental Income Guide 2026

Overview — Rental Income Tax in Armenia

Rental income from letting or leasing of immovable property (land and buildings) is chargeable to income tax in Armenia. For individuals, rental income is taxed at the flat 20% IIT rate. The landlord may elect to be taxed on gross rental income (with no deductions) or on net rental income (after allowable deductions). For corporate landlords (companies), rental income is included in taxable profits and taxed at 18% CIT. The tenant is not required to withhold tax on rent paid to resident landlords, but must withhold 20% on rent paid to non-resident landlords. Landlords must declare rental income in their annual tax return.

Residential Property — Flat 20% IIT

For individual landlords letting residential property, rental income is taxed at the flat 20% IIT rate. The landlord has two options:

• Gross basis — pay 20% on total rental receipts with no deductions. This is the simpler method.
• Net basis — deduct allowable expenses and pay 20% on the net rental income. This is beneficial when expenses are significant.

The landlord must file an annual tax return by 20 April of the following year, declaring all rental income received. There is no withholding at source for rent paid to resident individuals — the landlord is responsible for declaring and paying the tax.

Allowable Deductions

Landlords opting for the net basis may deduct the following expenses:

• Property tax — annual property tax paid to the SRC
• Repairs & maintenance — costs of maintaining the property in a rentable condition
• Insurance premiums — building and liability insurance
• Mortgage interest — interest on loans used to acquire or improve the rental property
• Management fees — fees paid to property management companies
• Utilities — if paid by the landlord and not reimbursed by the tenant
• Agency fees — commissions paid to real estate agents for tenant placement

To claim deductions, the landlord must maintain proper records and receipts. Capital improvements (extensions, major renovations) are not deductible as expenses but may be added to the cost base for capital gains purposes on eventual sale.

Short-Term Letting (Airbnb)

Short-term letting through platforms such as Airbnb, Booking.com, and others is treated as rental income and subject to the same flat 20% IIT rate. The platform may or may not withhold tax depending on its registration status in Armenia. Landlords offering short-term lets should declare all income received from these platforms. The SRC has been increasing compliance monitoring of short-term rental platforms. Expenses directly related to short-term letting (cleaning, platform fees, utilities) are deductible on the net basis.

Corporate Landlords — 18% CIT

Companies receiving rental income must include it in their taxable income and pay CIT at 18%. Rental income is treated as ordinary business income. The company may deduct all allowable expenses including depreciation on the rental property (buildings at 5% per annum, furniture and fittings at 10–20%). Corporate landlords must file annual CIT returns by 20 April of the following year and pay quarterly estimated tax instalments.

FAQs

Do I need to declare rental income if I rent out only one room?

Yes, all rental income from any property is taxable. If you rent out a room in your principal residence, the income is taxable at 20% IIT. However, if the total annual rental income is below AMD 600,000 (approximately), the SRC may apply simplified procedures.

What if I rent my property through an agency?

The agency may be required to report rental payments to the SRC. The landlord remains ultimately responsible for declaring and paying tax on the rental income, regardless of whether an agency is used.

Are advance rent payments (e.g., 6 months upfront) taxable in one year?

Yes, rental income is taxable in the year it is received, regardless of the period it covers. If you receive 6 months' rent in a lump sum, the full amount is taxable in that year.

Disclaimer

This guide provides general information about Armenian rental income tax 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.