Operational Efficiency Consulting in ArmeniaOptimizing compliance, navigating regulationsand maximizing ROI

Real Estate Advising in Armenia

Regulatory environment and legal framework

Armenia’s real estate sector is governed by a combination of the Civil Code, the Law on State Registration of Real Estate Rights and Other Rights Related to Immovable Property, and the Law on Foreign Investments, providing a transparent legal foundation for both domestic and international investors. The State Committee of the Real Estate Cadastre (SCREC) maintains an electronic land registry, offering public access to cadastral parcels, ownership records, and encumbrance details. Foreign investors may acquire freehold title to residential and commercial buildings, while land itself is generally leased from the state for terms up to 99 years. Certain strategic areas—such as border zones and lands adjacent to military installations—are subject to additional restrictions, requiring special clearances from the Ministry of Defense and the Ministry of Territorial Administration and Infrastructure.

Anti-money laundering regulations, aligned with Financial Action Task Force (FATF) recommendations, mandate rigorous due diligence on beneficial owners and source-of-funds disclosures to the Central Bank of Armenia (CBA). Environmental protection laws require impact assessments for large-scale developments, particularly in protected zones and watershed areas. Capital gains and rental incomes are subject to corporate and personal income tax regimes, with standard rates of 20 percent, while a value-added tax of 20 percent applies to new developments unless an exemption applies. Special Economic Zones and free economic activity incentives—implemented under the Law on Free Economic Zones—offer reduced tax burdens, customs duty waivers, and expedited permitting for qualifying projects. Despite ongoing reforms to streamline procedures, navigating the regulatory landscape demands local expertise to avoid delays, ensure full compliance, and mitigate legal risk.

Title registration and acquisition procedures

Securing a marketable title in Armenia requires a structured conveyancing process. Initial due diligence begins with a cadastral search through SCREC to verify parcel boundaries, existing liens, and zoning classifications. Prospective buyers then negotiate a Sale and Purchase Agreement, drafted by licensed local attorneys, which outlines payment terms, deposit schedules, and conditional clauses. Both parties execute the agreement before a notary public, who verifies identities, certifies signatures, and issues a notarized deed.

Stamp duty of 0.2 percent of the declared property value and registration fees—calculated on a sliding scale—are paid to the State Revenue Committee. The notarized deed, along with certified translations of any foreign-language documents, is submitted for registration at the SCREC office. Registration timelines typically range from two to four weeks, depending on caseload and completeness of documentation. Foreign investors may appoint local representatives via a power-of-attorney to expedite filings. Escrow services provided by licensed fiduciaries ensure that funds are released only upon confirmation of title registration. Title insurance is available through local insurers to protect against residual risks such as undisclosed encumbrances or boundary disputes. VelesClub Int. oversees every step—coordinating due diligence, handling notarial and tax payments, and liaising with registry officials—to deliver error-free title transfers and minimize administrative burdens.

Role of brokers and agencies

Licensed real estate brokers in Armenia operate under the Chamber of Real Estate Agents, adhering to professional standards for transparency and client protection. Top-tier agencies maintain extensive networks in Yerevan, Gyumri, and regional centers, sourcing both listed and off-market opportunities in residential, commercial, and mixed-use segments. Brokers conduct on-site assessments, prepare investment memorandum packages, and perform comparative market analyses to benchmark pricing and yield potential. They also advise on local zoning regulations, infrastructure access, and tenant demographics, guiding investors toward high-growth micro-locations.

In cross-border transactions, agencies coordinate certified translations, manage notarization of foreign-language agreements, and facilitate corporate entity setup under Armenian law. They work closely with legal counsel to draft bespoke contractual protections—such as conditional release clauses and performance guarantees—and manage escrow accounts to safeguard client funds. Standard commission rates range from 2 percent to 5 percent of transaction value, reflecting service scope and asset complexity. Leading agencies extend post-acquisition services, including lease administration, tenant sourcing, and asset management strategies designed to optimize long-term returns. VelesClub Int. partners with these agencies, augmenting their local expertise with our proprietary due diligence frameworks, compliance workflows, and financial modeling tools to deliver a fully integrated advisory experience.

Working with international investors

International investors entering the Armenian market must navigate currency regulations overseen by the CBA, which require approvals for significant inward and outward transfers. Since recent liberalization measures, investors may open foreign currency accounts with authorized banks and repatriate rental income and sale proceeds under clear reporting protocols. To benefit from investment incentives—such as tax holidays and customs duty exemptions in Free Economic Zones—foreign entities often establish limited liability companies (LLCs) or joint ventures under the Law on Foreign Investments, ensuring non-discriminatory treatment and repatriation rights.

Required documentation includes corporate charters, shareholder resolutions, audited financial statements, and KYC disclosures detailing ultimate beneficial owners. Investors targeting the hospitality and industrial sectors frequently leverage structured financing solutions arranged through partnerships with regional and international lenders, blending equity with project-level debt. Real estate professionals must also account for emerging industry trends—such as adaptive reuse of Soviet-era buildings and development of technology parks—when modeling feasibility and exit strategies. VelesClub Int. supports clients through entity formation, bank relationship management, regulatory filings, and finance structuring, delivering a seamless advisory process that mitigates cross-border risks and accelerates time to market.

VelesClub Int.'s advisory solutions

VelesClub Int. offers a comprehensive suite of advisory services designed to navigate Armenia’s real estate complexities and drive superior investment outcomes. Our multidisciplinary team—comprising licensed attorneys, compliance specialists, market analysts, and finance advisors—begins each engagement with a strategic assessment to define client objectives, risk tolerance, and return expectations. We conduct rigorous due diligence, including legal audits, cadastral verifications, environmental impact assessments, and zoning compliance checks, ensuring all assets meet statutory requirements.

Leveraging proprietary market intelligence platforms, we furnish real-time data on supply-demand dynamics, pricing trends, and tenant profiles. Our legal advisors manage contract drafting, entity registration, and regulatory filings, ensuring full adherence to the Civil Code and investment laws. Financial analysts develop tailored models to evaluate project feasibility, forecast cash flows, and optimize capital allocation. For projects qualifying for Free Economic Zone benefits, we handle application processes to secure maximum tax incentives. Our escrow management team establishes fiduciary arrangements with top-tier banks to safeguard client funds, releasing capital only upon achievement of agreed milestones. Post-transaction, VelesClub Int. provides ongoing asset management, lease administration, and performance monitoring to maximize yield and facilitate eventual divestiture. By integrating local expertise with global best practices, we transform complex advisory challenges into actionable strategies, empowering clients to capitalize on Armenia’s evolving property market.

Conclusion and next steps

Armenia presents compelling opportunities for real estate investment—driven by regulatory reforms, strategic location at the crossroads of Europe and Asia, and growing demand for modern residential, commercial, and industrial assets. However, successfully navigating local regulations, registration procedures, and cross-border considerations requires specialized expertise. Partnering with VelesClub Int. ensures seamless access to market insights, full-service transactional support, and advanced advisory solutions tailored to institutional and corporate investors.

Next steps include scheduling a detailed strategy workshop with our advisory team to outline project parameters, investment timelines, and risk-mitigation approaches. We will perform a preliminary regulatory mapping and financial modeling exercise to identify opportunities and address potential challenges. Engage VelesClub Int. today to unlock Armenia’s real estate potential and accelerate your investment journey with confidence, clarity, and precision.