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When buying a home and the income tax refund law is in effect, it is possible to get a refund of the income tax paid on the amount of their mortgage interest.
This guide provides the necessary information on the procedures for income tax refunds.
The income tax refund is one of the support programs of the RA government aimed at the acquisition or construction of an apartment.
According to this program, when a person buys an apartment, the income tax paid from their salary is refunded to them in the amount of mortgage interest repayments.
The income tax refund program can be used by employees, individual entrepreneurs, and notaries who pay income tax to the RA budget personally or through a tax agent (employer).
In addition, individual entrepreneurs and notaries can use this program if they have signed a mortgage loan agreement as an individual entrepreneur or notary.
To receive an income tax refund, the apartment must meet the following requirements:
The borrower and co-borrower can benefit from the income tax refund only from 1 mortgage loan agreement.
The total amount of income tax refundable to co-borrowers for each quarter should not exceed 1.5 million AMD.
Starting January 1, 2025, it is planned to reduce the amount to 750,000 AMD.
If the building permit was obtained after January 1, 2022, the income tax refund program is valid until January 1, 2025, for apartments purchased in zones 4 and higher.
Attention
To obtain information about the exact zone of the location of the purchased apartment, it is necessary to contact an employee of the development company.
From 2027, the income tax refund law will not apply in 4 regions: Kotayk, Aragatsotn, Armavir, and Ararat, and from 2029, it will cease to apply in all other regions, except for border settlements.
The amount to be refunded is calculated quarterly as follows:
Attention
The maximum amount to be refunded monthly is up to 500,000 AMD, even if the mortgage interest and income tax amount is higher.
For example:
The payment schedule included in the mortgage loan agreement signed with the bank shows which part of the monthly payments is the interest amount and which part is the principal amount.
This message appears in the system when the employer has not yet paid the income tax.
Income tax is paid by the employer until the 20th of the given month (income tax can be received on April 20, July 20, October 20, or January 20, depending on the quarter for which the application was submitted).
Yes, you can apply for a refund of income tax for any missed period. To apply, it is mandatory that mortgage and income tax payments have been made during that period.
