Property owners who do not have lease agreement will be fined

Taxation of income from rental real estate in Armenia has been provided for a long time. But this provision of the law has so far only been in effect in the case of signing rental agreements, since in the case of verbal agreements with individuals, this type of illegal business is almost impossible to detect.

This was reported to Sputnik Armenia by the Head of the Revenue Policy and Administration Methodology Department, Ori Alaverdyan, commenting on the legislative tightening undertaken by the Armenian government to identify skimming.

“The fact of receiving income in the form of rent is almost impossible to control. And this is quite difficult all over the world, not only in Armenia. Tax authorities of all countries have problems collecting taxes on this type of income as they are difficult to control,” the official said.

From December 1, amendments established by the Tax Code of the Republic of Armenia related to the rental of real estate will come into force.

It is envisaged to fine property owners who do not have a lease agreement and who do not pay state tax on income from the rental of their apartments.