Armenia applies a 20% flat income tax on all personal employment income, self-employment income, and most other personal income. Employee pension contributions follow a tiered structure: 5% of monthly salary for incomes up to AMD 500,000/month (~$1,280), and a fixed maximum contribution of AMD 87,500/month (~$224) for salaries above that threshold — meaning high earners benefit from an effective cap on pension contributions. Dividends paid to residents are taxed at just 5%, while royalties and property rental income are taxed at 10%. Armenia's tech sector is booming: Yerevan has attracted significant investment from international IT companies, particularly since 2022 when many Russian tech workers relocated here. The country offers a 'High-Tech Park' initiative with 0% corporate income tax and reduced employment taxes for certified tech companies, making it one of the most tech-friendly tax environments in the region. Cost of living in Yerevan: ~$800-1,200/month.
This hub links to every Armenia tax guide and calculator on CountryTaxCalc — covering income tax rates, and tools to calculate your take-home pay.
Armenia applies 20% flat personal income tax. Employee pension contributions: 5% on monthly salary up to AMD 500,000; capped at AMD 87,500/month above that threshold. Dividends: 5%. Yerevan is the Caucasus tech hub with 0% IT sector incentives.. Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| All personal income | 20% flat |
| Dividends | 5% |
| Royalties | 10% |
| Property rental income | 10% |
| Pension contributions: salary ≤AMD 500K/month | 5% of gross salary |
| Pension contributions: salary >AMD 500K/month | Capped at AMD 87,500/month |
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