Armenia encourages foreign trade and investment, and the laws allow foreigners to purchase businesses and property, repatriate revenue and profits, and receive compensation if property is nationalized. Armenia is a relatively easy country in which to do business. The World Bank study, Doing Business 2012, ranked Armenia as the 55th easiest country to do business out of 183 countries surveyed.  Foreign investors may invest in Armenia real estate directly, or through a local company or a non-resident company. Foreign investors are free to purchase Armenian properties in their own names, but they may not purchase the land that the property sits on. There are no restrictions on land ownership by Armenian companies, even if 100% owned by foreign investors. Land may be leased (normally for 99 years) by foreign investors. An Armenian resident company or registered branch/representative office of a foreign legal entity is subject to corporate tax at a rate of 20%. The tax year is the same as a calendar year and ends on 31 December. Taxable income is based on the net profit calculated using normal accounting principles, and subject to proper documentation of expenses. There is no group consolidation. Most expenses, other than those of a capital nature, may be deducted, provided that they are properly documented and incurred wholly and exclusively for the purposes of earning income in the Armenian business. Interest may be deducted, but the amount is restricted to double the banking settlement rate defined by the Central Bank of Armenia (at 31 December 2011, the settlement rate was 12%).

In addition to the existing cap (twice of the Armenian Central Bank’s settlement rate), from January 2012 the deductible interest expense payable within the tax year should not exceed. Foreign investors who dispose of Armenian property and have not created a permanent establishment would be subject to tax on the gain realized on disposal of the property at a rate of 10%. Gains realized by an Armenian company are liable to corporate tax at the same rate as operating income (20%). Gains are reduced by allowable expenses, provided they are properly documented. Dividends paid by Armenian resident companies are subject to withholding tax of 10%, subject to any reduction or exemption allowed under an applicable tax treaty. Generally, services associated with the construction, alteration, or refurbishment of any building and the sale of buildings are subject to the standard VAT rate of 20%. The sale of residential buildings by individuals is not subject to VAT. However, the second or subsequent sales of the same type of certain properties during one year if the property is sold within a year of acquisition are subject to VAT. When an investor purchases a building, he would normally be able to recover VAT charged on the purchase and on all future expenses relating to the building. However, obtaining a VAT refund can be problematic and VAT on acquisition may need to be recovered against the VAT on future revenues.