Tax on Selling an Apartment: When It Applies and When It Doesn’t
Most private apartment sales in Armenia are not subject to income tax. But there are cases where tax does arise — we go through them based on the current Tax Code.
Contents
The general rule: no tax when selling to an individual
Article 147 of the Tax Code of Armenia treats income from selling property owned by the seller as non-taxable when the buyer is an individual who is not a sole proprietor or a notary. Put simply, if you sell your apartment to another person, there is no income tax on the proceeds.
How long you have owned it does not matter. The original version of the Code had a rule that selling a home within a year of buying it was treated as business activity and taxed. The current version of Article 147 has no such condition (checked against the text of the Code on 13 September 2026).
A simple example: you sell an apartment to your neighbor for AMD 40 million — no tax arises. If you sell the same apartment to a company, the buyer withholds AMD 4 million in tax.
When tax does apply
| Situation | Tax | Legal basis |
|---|---|---|
| Selling an apartment to an individual | none | Art. 147(16) |
| Selling to a company, sole proprietor or notary | 10% of the full amount | Art. 150(9) |
| An individual developer selling apartments in a building they built | 20% | Art. 147(16); Art. 150(11) |
If the buyer is a company or a sole proprietor, they act as a tax agent: they withhold 10% of the price and pay it to the budget. Agree in advance what price goes into the contract and how much you will actually receive.
A separate case is an individual who is the developer of a multi-apartment building and sells the apartments in it. The Code expressly excludes this income from the non-taxable category, and developer income is taxed at 20%.
What the seller should do before the deal
- Pay the property tax: the Cadastre registers the transfer only with a certificate showing no debt (Article 236 of the Tax Code).
- Check utility debts and agree with the buyer how they will be settled.
- Get a fresh unified certificate from the Cadastre so the buyer sees up-to-date information.
- If the apartment is mortgaged, agree with the bank on how the loan will be repaid and the pledge released.
If you bought the apartment with a mortgage and receive the income tax refund, ask the SRC and your bank in advance what happens to the refund after the sale: the right to it is tied to a specific loan and home.
Declarations and special cases
No tax does not always mean no reporting. Certain categories of citizens must file an income declaration, and it may also include non-taxable income. Check on src.am or at an SRC service center whether you need to report the proceeds from selling your apartment.
If you are not an Armenian tax resident, are selling property used in a business, or are structuring the deal through a company, the rules may differ. In those cases, consult a tax adviser before signing the contract.
Key points
- Selling your apartment to an individual is not subject to income tax.
- Under the current Code, how long you have owned it does not matter.
- If the buyer is a company, sole proprietor or notary, they withhold 10% as a tax agent.
- An individual developer pays 20% on selling apartments in a building they built.
- Pay the property tax before the deal — without the certificate, the Cadastre will not register the transfer.
