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Freelancer taxes in Armenia (2026)

A freelancer earning €60,000 a year in Armenia keeps between 48,120 EUR and 53,520 EUR depending on the scheme — the best option is "High-tech turnover tax 1% (IT sole proprietor)" at an effective burden of 10.8%. 2 schemes below, each computed from official rules.

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Tax schemes

High-tech turnover tax 1% (IT sole proprietor)

activeSole proprietor

What you pay

  • Mandatory funded pension contribution — progressive on revenue (allowance 3,000,000): 10% above
  • Health insurance contribution — fixed 10,800 per month
  • Military stamp duty — fixed per year by annual revenue: 12,000 up to 12,000,000; 120,000 above
  • High-tech turnover tax 1% — 1% of revenue

Eligibility

  • Revenue cap 115,000,000 AMD/year
  • Activities: it-services, software-development, r-and-d, high-tech (government-defined list)
  • Requires tax residency
  • Limited to first 7 years
  • Preferential 1% turnover-tax rate on income from government-defined high-tech/IT activities, in force 2025-01-01 to 2031-12-31 (Laws HO-498-N state support + HO-499-N Tax Code amendments). Requires listing in the state High-Tech Registry (self-service platform live since 2025-04-17), at least 90% of sales from qualifying activities, election by 20 February, and no overdue tax liabilities. Individual entrepreneurs qualify. Same 115M AMD turnover cap as the general turnover-tax regime; exceeding it forces exit.

Net income examples

Gross/yearNet/yearBurden
30,000 EUR26,820 EUR10.6%
60,000 EUR53,520 EUR10.8%
120,000 EUR106,920 EUR10.9%

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

DSL modelling notes: (1) The funded pension for individual entrepreneurs is 5% of gross income up to 6M AMD/year, then 10% × income − 300,000 above 6M. The −300,000 constant is expressed exactly as a 10% progressive rate on (revenue − 3,000,000), since 10% × (income − 3,000,000) = 10% × income − 300,000; this is correct only for income ≥ 6M (below 6M the true charge is 5% of income). Both examples are above 6M, so the model is exact for them. (2) The pension is charged on GROSS turnover, not net profit — verified — which is why the real burden is far above the headline 1%. (3) No maximum annual pension ceiling is stated in any official source consulted (the employee ceiling of ~1,050,000 AMD/yr is not confirmed to apply to individual entrepreneurs), so the pension is modelled uncapped; if an IE ceiling does apply it would lower the burden at high incomes — flagged for manual review. (4) Health contribution 129,600 AMD/yr applies when prior-year income exceeds ~2.4M AMD; assumed to apply. (5) Military stamp duty 2026: 12,000 AMD if annual income ≤ 12M, 120,000 AMD if above. VAT is not triggered below the 115M AMD registration threshold.

Turnover tax 10% (services, sole proprietor)

activeSole proprietor

What you pay

  • Mandatory funded pension contribution — progressive on revenue (allowance 3,000,000): 10% above
  • Health insurance contribution — fixed 10,800 per month
  • Military stamp duty — fixed per year by annual revenue: 12,000 up to 12,000,000; 120,000 above
  • Turnover tax 10% (services) — 10% of revenue

Eligibility

  • Revenue cap 115,000,000 AMD/year
  • Activities: services, other-activities
  • Requires tax residency
  • Simplified turnover-tax regime replacing VAT and profit tax for SMEs with prior-year turnover ≤ 115M AMD. Election by 20 February. From 2025 the rate for services / 'other activities' is 10% of turnover (Tax Code Art. 258), reducible by documented expenses down to a 4.5% minimum of turnover; this scheme models the headline 10% with no expense reduction (the conservative case). Micro-business 0% is NOT available to IT/consulting/professional-services providers (excluded since July 2025).

Net income examples

Gross/yearNet/yearBurden
30,000 EUR24,120 EUR19.6%
60,000 EUR48,120 EUR19.8%
120,000 EUR96,120 EUR19.9%

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

Same DSL pension/health/stamp modelling as am-it-hightech-1 (pension on gross turnover, exact for income ≥ 6M, modelled uncapped). The 10% services rate can be reduced by documented expenses to a 4.5% floor of turnover; this scheme takes the headline 10% with no reduction, so it is an upper bound on the turnover-regime burden. A freelancer with few deductible costs pays close to this; one with high documented costs approaches the 4.5% floor. Expense-reduction is not modelled here because it is not a fixed rate.

Try your own numbers

Same engine, your income. For a cross-country comparison use the full calculator.

  1. 1 High-tech turnover tax 1% (IT sole proprietor)
    53,520 EURnet/year
    10.8% burden
  2. 2 Turnover tax 10% (services, sole proprietor)
    48,120 EURnet/year
    19.8% burden