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The (Nearly) Free, Entirely Remote, 3-Year Path to Armenian Citizenship · IMI Podcasts

• 0:00
  SPEAKER_00: For but a few thousand dollars, you can get permanent residency in Armenia, which places you on a three-year path to citizenship without any minimum stay requirements.
• 0:11
  SPEAKER_00: This podcast details the practical steps, costs, and timelines involved in getting your Armenian citizenship.
• 0:19
  SPEAKER_00: While not as valuable as an EU or Mercosur citizenship in terms of settlement rights or visa-free travel, Armenian citizenship offers a number of distinct advantages.
• 0:31
  SPEAKER_00: Armenian passports afford visa-free travel to 69 countries and territories, including China, Russia, Turkey, and most countries in South America.
• 0:42
  SPEAKER_00: Moreover, thanks to the country's membership in the Eurasian Economic Union's supranational settlement block, Armenian citizens can freely move, visa-free and often using only national IDs, and settle permanently within the territories of all other member states, which include Russia, Kazakhstan, Kyrgyzstan, and Belarus.
• 1:03
  SPEAKER_00: You can also pass Armenian citizenship to your children, and even more distant descendants, since Armenia offers citizenship by descent to those who can demonstrate Armenian origin, no matter how many generations ago.
• 1:18
  SPEAKER_00: There are no restrictions on dual citizenship, and, should the need arise in the future, renouncing your Armenian citizenship is a simple procedure.
• 1:27
  SPEAKER_00: But there is another process afoot that could see the value of Armenian citizenship rise sharply in the not too distant future.
• 1:37
  SPEAKER_00: This March, Armenia's foreign minister indicated the country is considering formally applying for EU membership this year.
• 1:45
  SPEAKER_00: Moreover, a few days later, the European Parliament passed a resolution confirming that the country meets the Article 49 requirements of the Maastricht Treaty, which officially qualifies Armenia to apply for EU membership.
• 2:00
  SPEAKER_00: Should Armenia become an EU member, its citizens will have the same settlement rights as the other member countries of the EU and EEA supranational settlement blocks, allowing them to live permanently anywhere within the blocks' eighty member countries.
• 2:16
  SPEAKER_00: The first step on the path to Armenian citizenship is to obtain permanent residency.
• 2:22
  SPEAKER_00: Armenia offers a straightforward residency process for business owners and investors through the Armenia Permanent Residency Program.
• 2:30
  SPEAKER_00: Notable advantages include the ability to apply remotely, a streamlined application process, and no minimum stay or investment requirements.
• 2:40
  SPEAKER_00: Permanent residence permits, which require renewal every five years, allow sponsors to bring immediate and extended family members.
• 2:49
  SPEAKER_00: Residents enjoy access to social services, affordable health insurance, and a favorable path to citizenship after three years, which we'll discuss in detail below.
• 3:02
  SPEAKER_00: In Armenia, residency is accessible to those engaged in business activities, which the Armenian Civil Code defines broadly to include both active ownership, such as sole proprietorship or holding a majority stake, and passive ownership, holding a minority stake.
• 3:21
  SPEAKER_00: While many clients opt to register a business in Armenia to capitalize on the lower tax rates, 0% to 10% for small businesses, those who prefer not to manage their own business can, for example, invest just a few thousand dollars in a social business to qualify for residency.
• 3:41
  SPEAKER_00: Investors and business owners can apply directly for a long-term residence permit.
• 3:46
  SPEAKER_00: While formally termed permanent, it requires renewal every five years.
• 3:52
  SPEAKER_00: In 2022, Armenia issued residence permits to 16,759 foreign nationals.
• 3:58
  SPEAKER_00: Among these, 12,178 individuals received a one-year temporary residence permit, 3,279 individuals received a five-year permanent residence permit, and 502 received a 10-year special residence permit.
• 4:14
  SPEAKER_00: Armenia stands out for its simple residency qualification process.
• 4:18
  SPEAKER_00: Specifically, applications can be submitted remotely using a power of attorney.
• 4:24
  SPEAKER_00: Applicants need only provide a valid passport and, for remote submissions, a medical certificate.
• 4:32
  SPEAKER_00: Authorities process applications within 90 days.
• 4:36
  SPEAKER_00: There are no minimum stay requirements, and there is no minimum investment requirement.
• 4:42
  SPEAKER_00: Holders of permanent residence permits can sponsor their spouse, children, siblings, parents, and even grandparents and grandchildren for residency.
• 4:52
  SPEAKER_00: Upon obtaining residency, family members gain access to Armenian social services, including health care, education, and social security.
• 5:03
  SPEAKER_00: The steps involved in obtaining permanent residency in Armenia through business activity include document submission and initial registration as a shareholder or investor, typically completed within two to three business days, residence permit application, which takes approximately 45 to 50 days, culminating in the issuance of the residence card.
• 5:27
  SPEAKER_00: And finally, appointment scheduling, which due to high demand, may require scheduling several weeks or even months in advance.
• 5:36
  SPEAKER_00: Obtaining a residence permit in Armenia does not automatically confer tax residency.
• 5:43
  SPEAKER_00: Tax residency is primarily determined by the duration of stay within a calendar year.
• 5:48
  SPEAKER_00: The critical threshold is 183 days or more within the country.
• 5:54
  SPEAKER_00: Individuals who do not spend more than 183 days in the country, but still wish to establish tax residency in Armenia, for example, due to substantial personal or business connections that centralize their economic interests in the country, may apply for a tax residency certificate.
• 6:12
  SPEAKER_00: Notable tax benefits and regulations include, first, no tax on capital gains.
• 6:19
  SPEAKER_00: Armenia doesn't typically tax individuals on capital gains from the sale of securities, real estate, or other assets, regardless of whether these gains are generated domestically or internationally.
• 6:32
  SPEAKER_00: Second, tax exempt income types, certain types of income, such as insurance and pension payouts, are exempt from taxes, making this an advantageous option for retirees.
• 6:44
  SPEAKER_00: Third, no inheritance, gift, or wealth taxes.
• 6:49
  SPEAKER_00: And fourth, favorable taxation of foreign income.
• 6:53
  SPEAKER_00: Tax residents must generally pay taxes on global income at flat rates, 20% on business income, 10% on interest, and 5% on dividends.
• 7:03
  SPEAKER_00: However, Armenia has double taxation agreements with approximately 50 countries, which can significantly reduce tax liabilities for foreign income.
• 7:13
  SPEAKER_00: Armenian nationality law allows for the naturalization of individuals who have held permanent residency for three years.
• 7:21
  SPEAKER_00: In practice, the residency status of the individual need not have been permanent for those three years.
• 7:27
  SPEAKER_00: The migration service will accept applicants who have maintained a residence permit in the country for three years.
• 7:34
  SPEAKER_00: Moreover, there is no formal or informal requirement to have spent a certain amount of time physically in the country.
• 7:42
  SPEAKER_00: As a consequence, an individual who has never set foot in the country can still apply for citizenship as long as they have held a residence permit for three years.
• 7:53
  SPEAKER_00: And unlike many countries with nationality laws that formally allow naturalization after being a resident for a certain number of years, but in practice often take more than a decade to grant citizenship, for example, Panama, Armenia actually grants citizenship to foreign residents within a reasonable time.
• 8:15
  SPEAKER_00: While rejections based on unexplained national security concerns are common, many applicants successfully gain citizenship.
• 8:24
  SPEAKER_00: If a rejection occurs, the applicant can challenge this in court.
• 8:29
  SPEAKER_00: Judges typically rule in favor of the applicant if the government fails to substantiate the national security threat claims.
• 8:36
  SPEAKER_00: However, such court proceedings may add another year or two to the process.
• 8:41
  SPEAKER_00: Even what most consider the biggest obstacle to naturalization in Armenia, the requirement that applicants pass a civics exam administered in the Armenian language, is not as insurmountable as it may seem at first glance.
• 8:57
  SPEAKER_00: The test is a 38-question multiple choice exam, where the questions appear in a predictable order.
• 9:04
  SPEAKER_00: This allows applicants to memorize the answers.
• 9:07
  SPEAKER_00: Applicants must also fill out a short form in Armenian.
• 9:11
  SPEAKER_00: While these elements require some familiarity with the written language, there is no requirement to speak or verbally understand Armenian.
• 9:20
  SPEAKER_00: All males ages 18 to 27 must, in principle, take part in 24 months of mandatory military service.
• 9:28
  SPEAKER_00: And in Armenia, the prospect of armed military conflict is not merely hypothetical.
• 9:35
  SPEAKER_00: On various occasions in recent years, the country has been at war with its neighbor Azerbaijan.
• 9:42
  SPEAKER_00: However, after age 27, males who have not completed their mandatory military service, for example, if they have been living abroad, can obtain an exemption from service in exchange for a variable fee, typically amounting to several thousand dollars.
• 9:58
  SPEAKER_00: After 35 years of age, the military service requirement lapses permanently.
• 10:04
  SPEAKER_00: Another hypothetical disadvantage is that Armenian citizens are not admitted to Azerbaijan, but there's nothing stopping you from traveling there on your original passport.
• 10:15
  SPEAKER_00: Relations with Turkey are also not the best.
• 10:22
  SPEAKER_00: This episode first appeared as an article by Nurses Isajanian on IMIDAily.com.
• 10:29
  SPEAKER_00: Subscribe for free to the IMI newsletter for breaking news and updates from the investment migration industry, and consider upgrading your membership to IMI Pro to get insider access to networking opportunities, industry events, data, and members only content.