Mortgage Income Tax Refund: How It Works and What Has Changed

How the refund works

The state refunds a salaried employee the income tax withheld from their salary, up to the amount of interest they paid on their mortgage. The refund is calculated quarterly and cannot exceed the income tax charged on the salary for that quarter (Article 160 of the Tax Code of Armenia).

An important condition: the tax for every month of the quarter must be paid in full, either by the employer as a tax agent or by the employee if there is no agent. Until the employer settles with the budget, the refund for that quarter will not arrive.

Who qualifies

• salaried employees — sole proprietors who are not employees and notaries are excluded;
• for a mortgage from a financial institution resident in Armenia;
• when buying an apartment in a multi-apartment building directly from the developer or under a state or community housing program;
• when buying a private house from a developer that is a company or sole proprietor, or when building your own house;
• for one mortgage agreement only: since 2018, the borrower and co-borrowers choose which one.

Apartments on the resale market are not covered. A co-borrower can also receive the refund if they are an employee and an owner or co-owner of the home.

What has changed: Yerevan is closed

From 2022 the benefit was phased out in Yerevan zone by zone, and the law then set dates for the provinces too. The main rule: what matters is the date the loan was received and where the home is located.

Source: the current version of the Tax Code (checked on 13 September 2026). The zones are approved by the government; the Cadastre Committee can tell you which zone a building is in.

The cap: AMD 750,000 per quarter

For loans issued after 1 January 2018, the refund is capped at AMD 1.5 million per quarter for the borrower and co-borrowers combined. For loans issued after 1 January 2025, the cap is half that — AMD 750,000 per quarter.

The changes are not retroactive: people who already receive the refund keep getting it under the old rules. The Ministry of Finance said so both when the phase-out began in 2021 and when changes were discussed in 2024.

How to apply

1. Take out a mortgage on an eligible home.
2. Submit an application to the tax authority to confirm your right to the refund, using the SRC form.
3. Attach your ID, public services number, loan agreement with the repayment schedule, the contract with the developer, the developer’s certificate and the certificate of registered rights; for construction, the building permit.
4. Once the application is approved, further documents are submitted electronically.
5. The refund is calculated and paid quarterly.

The list of documents is set by Government Decision No. 1321-N. If something changes — you switch jobs, sell the home or restructure the loan — inform the SRC and ask how it affects your refund.

Do you receive the mortgage income tax refund? Yes, I doNo, my apartment is from the resale marketNo, my loan came after the refund ended in my areaI haven’t taken a mortgage yet

Key points

• The refund covers mortgage interest out of the income tax on your salary — for salaried employees only.
• Eligible: new apartments bought directly from the developer, houses bought from a developer and building your own house.
• For loans from 2025 there is no refund in Yerevan; in the four neighboring provinces it ends for loans from 2027, elsewhere from 2029 (except border settlements).
• The cap for new loans is AMD 750,000 per quarter.
• People already receiving the refund keep it under the old rules.