What makes the legal framework of the Republic of Armenia attractive for foreign investments?
First of all, Armenian legislation allows foreign investors to own 100% of the shares, which allows them to be the sole owners of the property.
Secondly, it is known that foreign citizens in the territory of Armenia are prohibited to acquire land plots into ownership. But since they are allowed to conclude long-term lease agreements, companies founded by foreign citizens have the right to acquire land plots into ownership.
Besides, thirdly, the RA legislation provides various types of tax benefits to non- residents. In particular, the deferred payment of VAT amounts in case of import of equipment and goods (subject to the approval of the government), absence of export customs duties and other restrictions restricting export operations, exemption from paying a number of taxes in the border regions of Armenia, foreign investors in the Republic of Armenia also get the opportunity to carry out free of charge currency exchange operations, transfer money, and hire labor without restrictions.
Fourth, in case of changes in the legislation at the request of a foreign investor, the legislative norms in force at the time of the investment are applied for a period of up to five years.
Fifth, Armenia has 3 free economic zones (exemption from value added tax, property tax, corporate profit tax, customs duties and fees). There are also no restrictions on the repatriation of profits, verification activities and special permits for investment activities.
Sixth, foreign investors in the territory of the Republic of Armenia are exempt from customs duties. Import of materials and equipment/technologies from countries which are not EEU member states and which cannot be replaced by materials and equipment produced in EEU member states within the framework of investment projects in the priority sectors of the Armenian economy implemented
exclusively in its territory (by a separate decision of the Government) is not subject to customs duties.
And, finally, seventh, the investment capital may be placed by foreign companies without industry or geographical restrictions on placement, except for industries and territories where placement of investments is not allowed in the interests of national security.