Wednesday, September 27 2023 15:55

ArmInfo. The State Revenue Committee (SRC) intends to establish control in the real estate  rental market in order to bring this segment out of the shadows.  Deputy Chairman of the SRC Karen Tamazyan stated during a meeting of  the Standing Committee on Economic Affairs on September 27.

According to the proposed bill, individuals who rent out real estate  are required to declare their income from rental property and obtain  state registration. Otherwise, the latter will be burdened with a  fine of 5% of the cadastral value of the property (but not exceeding  500 thousand drams), but if the violations are repeated, the fine  will be 10% of the cadastral value (but not exceeding 1 million  drams).

Tamazyan said that in 2021 the number of individuals declaring their  income from rental real estate in Armenia was 4,150, and in 2022,  their number, according to official data, increased slightly to  4,185. "And this is in the case when we know what the flow of foreign  citizens was like in 2022, and how the real estate rental market in  the country intensified," noted the deputy head of the Committee.

Violations will be identified as a result of operational search work  by the State Revenue Committee. The fine, as Tamazyan clarified, will  not be applied in the absence of state registration only if the  individual has in good faith declared his income from rental real  estate to the tax authorities.

The regulations will come into force on January 1, 2024.

According to the Real Estate Cadastre data, 3,427 real estate rental  transactions were concluded in Yerevan in H1 2023 (or 12.1% of  transactions of the total volume), which is 12% higher than a year  ago. The number of real estate rental transactions in the regions,  increased over the year by 35.4% to 2,755.