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Freelancing from Armenia in 2026 can be extremely tax-efficient if you understand taxes for freelancers in Armenia and choose the right setup. Make the wrong decision, and you could end up paying unnecessary 20% income tax, facing penalties, or missing out on valuable tax benefits.
This practical guide breaks down exactly how freelancers, digital nomads, and solo founders are taxed in Armenia, what type of registration you actually need, and which tax regime best fits your situation in 2026.
Who This Guide Is For
This guide is built for:
- Freelancers and solo professionals
(developers, designers, consultants, marketers, creators)
- Digital nomads and remote workers
living in Armenia, short- or long-term
- One-person service businesses
operating as Individual Entrepreneurs (IEs)
- Foreign nationals
earning income while spending time in Armenia
So, if you earn money regularly, locally or internationally, this guide is for you.
The Biggest Freelancer Tax Mistake in Armenia
If you ask, “Can I just get paid via PayPal or Upwork and deal with taxes later?”
Legally: no.
Regular freelance income without registration is treated as illegal entrepreneurial activity. Armenian tax authorities increasingly rely on:
- Banking data
- Platform reports
- Cross-border payment tracking
For most freelancers, proper registration + the right tax regime = lower taxes and peace of mind.
Let professionals handle your taxes while you focus on growing your freelance income
2 Legal Ways to Be Taxed as a Freelancer in Armenia
If you’re doing ongoing paid work, you generally have two ways to be taxed:
Option 1: Stay an Individual (Not Recommended Long-Term)
- Declare freelance income in your personal return
- Pay 20% income tax on net profit
- No access to simplified regimes
Usually, it is more expensive and riskier for ongoing freelance work.
Option 2: Register as an Individual Entrepreneur (IE)
- Armenia’s official solo-business structure
- Access to simplified or preferential tax regimes
- Often cuts effective taxes dramatically
This is the preferred setup for most freelancers.
Are You an Armenian Tax Resident?
Before you decide how you’ll be taxed, you need to know where you’re a tax resident, because that determines whether Armenia taxes you only on Armenian‑sourced income or on your worldwide income.
You’re generally considered an Armenian tax resident for a given tax year if:
- You spend 183 days or more in Armenia during that calendar year; or
- Your “center of vital interests” is in Armenia (your main home, family, or core business activity is here), even if you spend fewer than 183 days physically in the country.
Why it matters:
- Residents are taxed in Armenia on their worldwide income (with double tax treaties helping avoid paying twice in two countries).
- Non‑residents are taxed mainly on Armenian‑sourced income; purely foreign‑sourced income of a non‑resident freelancer is often out of scope for Armenian tax.
Example:
- A US developer spending 10 months in Yerevan for remote work is likely an Armenian tax resident and must declare global freelance income here.
- A designer spending 4 months in Armenia, with home, family, and business elsewhere, is likely not resident and is usually taxed in Armenia only on income truly sourced from Armenia.
Freelancer Tax Regimes in Armenia (2026 Overview) – Taxes for Freelancers in Armenia
Armenia can be one of the most freelancer-friendly tax jurisdictions in the region, but only if you register correctly and choose the right regime.
| Regime | Turnover limit | Tax | Best for |
| Micro-entrepreneurship | Up to 24M AMD | 0% | Very small, eligible activities |
| Turnover tax | Up to 115M AMD | ~10% (varies) | Many service freelancers |
| 1% IT regime | Up to 115M AMD | 1% | IT freelancers |
| General system | No limit | 18% on profit + 20 % VAT | High expenses / excluded activities |
1. Micro-Entrepreneurship (0% Tax)
Micro-entrepreneurship is Armenia’s 0% tax regime for very small businesses, with a turnover cap of 24M AMD per year. If eligible, you pay:
- 0% income tax
- 0% VAT
- 0% turnover tax
Who qualifies in 2026?
You must:
- Stay under 24M AMD annual turnover
- Perform activities not excluded by the Tax Code
Usually eligible:
Certain tutoring, manual trades, crafts.
Usually excluded (even under 24M AMD):
- Consulting and advisory services
- IT, design, marketing, advertising
- Legal, accounting, audit, engineering, translation
If you provide professional or “white-collar” services, assume you are not eligible unless confirmed by a specialist.
Application rules
- New IE: apply within 20 days of registration
- Existing IE: apply by 20 February for the full year
- Exceeding 24M AMD = automatic exit to turnover tax or general system
2. Turnover Tax (Simplified % on Revenue)
If micro-entrepreneurship doesn’t apply and your turnover stays under 115M AMD, turnover tax is often the default option.
How it works
- Tax is calculated on gross revenue, not profit
- Rates depend on activity (~10% for many services, range 5-20%)
- Best for freelancers with low expenses and high margins
Key points
- Must apply within 20 days of registration or by 20 February
- Missing the deadline = automatic general taxation
- Some professional services are being phased out and moved to the general system
Always verify your activity code before relying on turnover tax.
Reporting
- Quarterly filing and payment
- Compliance with Armenia’s e-invoicing rules
3. 1% IT Turnover Tax (High-Tech Regime)
For IT freelancers and small tech teams, Armenia offers a 1% turnover tax, valid from 2025 to 2031.
Requirements
- Approved high-tech / IT activity
- 90%+ income from qualifying IT work
- Registered in the High-Tech Registry
- No tax arrears
- Turnover under 115M AMD
Tax: 1% of qualifying revenue
Applications: submitted quarterly, within 20 days after each quarter
One of the most favorable regimes in Armenia if structured correctly.
4. General Taxation System
If you don’t qualify for simplified regimes, you fall under the general system.
Income tax
- 18% tax on net profit (revenue minus documented expenses)
- Requires proper bookkeeping and records
- Works best when expenses are relatively high
VAT
- Standard rate: 20%
- Mandatory registration above 115M AMD turnover
- Many services to foreign clients can be 0% VAT, if documented correctly
Social Contributions and Additional Costs
In addition to taxes, freelancers usually pay:
- Stamp duty / military contribution (fixed monthly amount)
- Pension/social contributions (often ~5,000 AMD/month minimum)
- CIT for IE-s (often ~5,000 AMD/month minimum)
- Medical insurance fee for IE
These are relatively small but slightly increase your effective tax rate, especially under low-tax regimes like 0% micro or 1% IT.
Avoid penalties and overpaying taxes.
How to Register as an Individual Entrepreneur (IE)
Registering as an IE in Armenia is straightforward and relatively fast.
- Visit the State Registry (or use an authorized intermediary)
- The main State Registry office in Yerevan handles IE registrations; many service providers can also do this for you.
- Prepare documents
- Passport or ID.
- Notarized Armenian translation of your passport if you’re a foreigner (if required in your case).
- Pay the state duty
- The IE registration fee is around 3,000 AMD.
- Receive your TIN (Tax Identification Number)
- An 8‑digit code you’ll use for tax filings and e‑invoicing.
- Choose and apply for your tax regime
This is crucial: within 20 days of IE registration, file:- A declaration to be treated as a micro‑enterprise (if eligible), or
- An application to use the turnover tax system, or
- Accept that you will be in the general tax system if you do nothing.
If you’re in IT and plan to use the 1% regime, you also need to go through the high‑tech registration and application process on the relevant government portal.
Key deadlines for 2025–2026
Deadlines can change, and recent reforms introduced a transition period with extended filing windows.
As of the current rules:
- Turnover tax: quarterly filing and payment, usually by the 20th of the month following the quarter.
- Annual personal/IE income declaration: for 2025 income, the filing period runs from 2 March 2026 to 1 November 2026 (an extended window specific to this transition period).
- From future years, the standard window is moving to 2 March – 1 July, with payment due by 1 July for the previous year’s income.l
Always verify the deadlines that apply to the specific year you’re filing for, especially during this transition phase.
FAQs
How much tax do I pay as a freelancer in Armenia?
It depends on your tax regime. Freelancers may pay 0% (micro-entrepreneurship), around 10% turnover tax, 1% under the IT regime, or 20% income tax on profit under the general system.
Do freelancers have to pay income tax in Armenia?
Yes. Freelancers must pay tax on their income. The exact tax depends on whether you are registered as an Individual Entrepreneur and which tax regime applies.
Do I need to register as an Individual Entrepreneur to freelance legally?
Yes. If you regularly earn freelance income, you must register as an Individual Entrepreneur (IE) to remain compliant and access simplified tax regimes.
Can freelancers work with foreign clients and still pay tax in Armenia?
Yes. If you are an Armenian tax resident, you must declare income from foreign clients in Armenia, often with reduced or zero VAT depending on the service type.
