Mortgage Income Tax Refund in Armenia: What Changes from 2027?
From January 1, 2027, Armenia’s mortgage income tax refund rules will change for properties in Kotayk, Ararat, Armavir and Aragatsotn. Here’s what property buyers should know before making a decision.
Mortgage Income Tax Refund in Armenia: What Changes from 2027?
If you are thinking about buying an apartment or house in Armenia with a mortgage, the final months of 2026 could be important for your decision.
From January 1, 2027, the rules around income tax refunds on mortgage interest will change.
The changes are especially relevant for buyers considering property in:
Kotayk
Ararat
Armavir
Aragatsotn
If you are already planning to buy property, it is worth understanding how the new rules may affect your mortgage costs and overall budget.
What is the mortgage income tax refund program?
For many years, Armenia’s income tax refund program has been an important financial benefit for some mortgage borrowers.
In simple terms, if a buyer meets the program requirements, part of the income tax paid from their salary can be refunded and used toward the interest payments on their mortgage.
This has been particularly relevant for buyers purchasing apartments in new developments and, in many cases, has reduced the effective monthly cost of a mortgage.
What changes from January 1, 2027?
For mortgage loans issued after January 1, 2027, the income tax refund will no longer apply to certain properties located or being developed in:
Kotayk
Ararat
Armavir
Aragatsotn
Some exceptions may still apply to specific border communities.
This means that it is important to consider not only where the property is located, but also when the mortgage loan is issued.
If you are already considering buying property in one of these regions, it may be worth reviewing your financing options before making a decision.
What about Yerevan?
The mortgage income tax refund program has already been gradually restricted in Yerevan.
Restrictions were introduced in different parts of the city in stages and were later extended to additional areas.
Some transitional exceptions may still apply to certain developments, depending on factors such as when the construction permit was issued.
For this reason, simply knowing whether a property is in Yerevan or outside the capital is not enough.
Before buying, it is important to check the specific development, mortgage conditions and whether the tax refund applies to your individual case.
Why is Kotayk particularly interesting?
Kotayk has become one of Armenia’s more active real estate markets.
Areas such as Abovyan, Tsaghkadzor, Hrazdan and communities close to Yerevan attract both people looking for a home and buyers considering real estate as an investment.
If you are planning to purchase property in these areas, the 2027 changes could affect your overall financial calculation.
However, a tax benefit should never be the only reason to buy a property.
What should you consider before buying?
The asking price is important, but it is only one part of the real cost of buying a home.
Before making a decision, consider:
Mortgage interest rate
Size of the down payment
Monthly mortgage payment
Construction quality
Property location
Maintenance and service costs
The property’s real market value
Whether you qualify for the income tax refund
Looking at the full picture makes it much easier to understand whether a property is actually a good purchase.
Should you buy before 2027?
Buying a property simply because tax rules are changing is not a good strategy.
But if you are already planning to buy, reviewing your options during 2026 may make sense.
Compare more than just the sale price.
Two apartments with the same asking price can have very different total costs depending on their mortgage conditions, interest rates and available tax benefits.
A tax benefit does not automatically make a property a good investment
The income tax refund can be valuable, but it should not encourage you to overpay for a property.
A strong property purchase should first make sense based on:
Market value
Location
Quality
Financing
Your personal financial situation
Your long-term plans
If a property does not make financial sense without the tax benefit, the refund alone may not make it a good investment.
The real cost is more than the purchase price
When buying real estate, many people focus almost entirely on the advertised price.
But the real cost may include:
Property price + down payment + mortgage interest + taxes + maintenance costs − available financial benefits.
Understanding the full financial picture helps you make a much better decision.
Looking for property in Armenia?
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Important note
This article is for informational purposes only and should not be considered tax, legal or financial advice.
Before taking out a mortgage or purchasing a property, check how the current rules apply to your specific situation with your bank, a qualified adviser or the relevant Armenian authorities.