What to Do When Renting Out Real Estate?

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If you own real estate, such as a house, apartment, or land, and you decide to rent it out, you must:

submit a rental statement on renting out the property,
submit a tax declaration on the income received from rent,
pay your income tax.

If you don't complete these steps, you can be fined.

Submit a rental statement

When renting out your property, you are required to submit a rental statement to the State Revenue Committee of Armenia within 5 days. You can submit it online or in-person at any taxpayer service center.

To submit the rental statement, you must have a taxpayer identification number (TIN), which is obtained online.

Apply online to obtain a taxpayer identification number (TIN)

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Submit a rental statement online

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You should submit the rental application to the tax authorities within 5 days after renting out the property.

If the rental agreement is terminated, you must submit a termination notification within 5 days after the agreement termination date.

The real estate rental application must include:

The landlord’s full name (first name, last name, and patronymic).
Taxpayer identification number (TIN), which must be obtained in advance.
Passport details.
Public service number (PSN) or a certificate confirming the absence of a PSN.
Date of submission.
Property details.
Rental period.
Amount of rental income.

If the monthly rental fee changes multiple times within a year, you must submit a separate application-notification for each change, indicating the relevant period of time.

Declare and pay your income tax

You must declare your rental income received throughout the year by May 1 of the next year.

The amount of your income tax will be calculated automatically based on your income declaration.

Declare your rental income online

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You should declare the income received from renting out real estate to the RA State Revenue Committee once a year, not later than May 1 of the following year.

You can pay your rental income tax in one of the following ways:

monthly (10% of the received income), or
annually (10% of the total income received during the year), by May 1 of the following year.

You must pay a 10% income tax on the income received from renting out real estate.

For example:

If you rent out an apartment for 150,000 AMD per month, your annual rental income will be 1,800,000 AMD (150,000 × 12 = 1,800,000).

The total income tax for the year will be 180,000 AMD (1,800,000 × 10% = 180,000).

If your annual rental income exceeds 60 million AMD, then the exceeding amount is taxed at 20%.

For example:

If you earned 80 million AMD rental income in a year, the tax is calculated as follows:

60,000,000 AMD × 10% = 6,000,000 AMD
20,000,000 AMD × 20% = 4,000,000 AMD
Total tax amount: 10,000,000 AMD

To pay the rental income tax, you must make a bank transfer to the Armenian state budget account 900008000490, specifying in the payment details your data: "Name, surname, taxpayer identification number (TIN)."

If your banking app does not allow direct transfers to the bank account number 900008000490, you can select the "Transfer to state budget" option.

Fines

If you rent out your house, apartment, or any other real estate you own and do not declare the received rental income, you will be fined for not meeting your tax obligations.

When renting out real estate, a fine is imposed if:

the rental agreement is not officially registered,
income tax is not calculated out of the received income, or
a rental statement has not been submitted.

If you do not fulfill your tax obligations, the fine is 5% of the cadastral value of the real estate (adjusted to market value), but no more than 500,000 AMD.

If the violation is repeated within one year, the fine increases to 10% of the cadastral value, but not more than 1 million AMD.

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