Mortgage income tax refund to end in regions around Yerevan from 2027
On 11 June 2026 Prime Minister Nikol Pashinyan said that from 1 January 2027 the mortgage income tax refund programme will no longer apply in Aragatsotn, Ararat, Armavir and Kotayk.
Contents
What was announced
On 11 June 2026 Nikol Pashinyan said the government will not extend the income tax refund for mortgage interest payments in the four regions around Yerevan: Aragatsotn, Ararat, Armavir and Kotayk. The change concerns purchases on the primary market and takes effect on 1 January 2027.
The Prime Minister also said developers need to obtain construction permits by 1 January 2027. Check with the developer and your bank how this condition applies to a specific project.
According to the Prime Minister, the government is consistently winding down the programme where construction is already active and wants to encourage housebuilding in more remote regions.
How the programme is being phased out
| From | Where the refund no longer applies |
|---|---|
| 1 January 2025 | Yerevan (for mortgages taken out from 2025) |
| 1 January 2027 | Aragatsotn, Ararat, Armavir, Kotayk |
| 1 January 2029 | All other regions, except some border settlements |
Since 2025 the maximum refund for new deals has also been cut, from AMD 1.5 million to AMD 750,000 per quarter.
What the programme costs
According to the Ministry of Labour and Social Affairs, citizens have received about AMD 300 billion under the programme since 2018. Back in 2025, the head of the State Revenue Committee forecast that refunds would exceed AMD 100 billion in 2026, a peak after which they would start to decline.
What buyers should do
- If you are looking at a new build in the regions around Yerevan with a mortgage, ask your bank whether your deal will still qualify for the refund.
- Check whether the building has a construction permit and when it was issued.
- Calculate your payment without the tax refund, so your budget is safe if the benefit does not apply.
Key points
- From 1 January 2027 the mortgage income tax refund will not apply in Aragatsotn, Ararat, Armavir and Kotayk.
- In Yerevan it has not applied to new contracts since 2025; in the other regions it ends in 2029.
- The maximum refund for deals since 2025 is AMD 750,000 per quarter.
- Check the terms for your specific deal with the bank and the State Revenue Committee.
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