– About Armenia

Today, Armenia is a country of opportunities with a highly skilled, innovative and entrepreneurial human capital, and a strategic location to do business with Europe, the Commonwealth of Independent States (CIS), the Middle East and Asia. Armenia offers global investors and transnational corporations convenient access to some of the largest markets via its membership in the Eurasian Economic Union (EEU), free trade agreements with other CIS countries, preferential trade agreements with the European Union (EU), USA, Canada, Japan, Switzerland and Norway, and its proximity to Iran and the Middle East. The EU, EEU and Iran represent a market of over 800 million consumers.

Armenia has a positive and open attitude towards foreign investments. Currently the Government of Armenia is carrying out comprehensive reforms of the business environment to make Armenia a preferred destination for foreign investments and ensure favorable business conditions for foreign investors.

- Key Economic Indicators

  • Nominal GDP 2016: 10.75 bln USD
  • Average Monthly Salary 2016: 390 USD
  • Cumulative FDI in 2010-2016: 3.1 bln USD
  • Corporate Tax: 20%
  • Value Added Tax: 20%
  • Income Tax: 24.4-36%

- Current Investment Climate

Armenia is considered as a country with one of the most open investment regimes among the CIS countries. The reforms related to the economy and infrastructure, macroeconomic stabilization and economic growth have contributed to the development and implementation of the country’s foreign investment policy. The main principles of the investment policy may be summarized as follows: A liberal attitude towards foreign investments and “Open Door” policy, Protection of investors’ rights, Provision of equal conditions for foreign and domestic investors.The Law on “Foreign Investments” sets forth the rights, guarantees and privileges for foreign investments such as:

  • Unrestricted access to any sector and geographic location within the country.
  • Guarantees against changes of legislation on investments for 5 years period.
  • Exploitation of natural resources through concession contracts.
  • 100 % of property ownership (except land for individuals).
  • Free and unlimited repatriation of property and profits.
  • Unlimited currency exchange on market rates.
  • No restrictions for personal recruitment.

- Free Economic Zones

Free economic zones (FEZs) in Armenia are combination of tax and infrastructure incentives to promote direct foreign investments, increase exports, create new jobs, and generate prerequisites for sustainable economic development in the country. FEZs in Armenia offer a unique opportunity for entrepreneurs to establish businesses in strategic sectors of the economy and to process produce and export goods with a reduced tax burden. Residents of FEZs in Armenia can benefit from the following privileges: 0 % profit tax, 0% VAT, 0% property tax and 0% customs duty!

There are currently 2 free economic zones operating in Armenia:

  • Alliance FEZ is oriented to the production and exports of high and innovative technologies in the field of electronics, precision engineering, pharmaceutics and biotechnologies, information technologies, alternative energy, industrial design, telecommunications (elaboration and production of technological equipment, systems and materials for data/information transfer).
  • Meridian FEZ is a unique platform for jewelry, diamond cutting and watchmaking manufacturing companies with special conditions and infrastructures for the free spirits in the field of business.

Steps to become a resident of FEZs:

  • Submit an application to Government Interagency Committee (including a business plan
  • Get permission from the Government (the decision is made in 21 days)
  • Sign a contract with the FEZ organizer

- Country Ratings

38

Among 190 Countries

DOING BUSINESS INDEX 2017


33

Among 186 Countries

ECONOMIC FREEDOM INDEX 2017


21

Among 180 countries

INVESTMENT FREEDOM COMPONENT 2017


9

Among 190 countries

STARTING BUSINESS INDICATOR 2017