Investment initiatives and government support measures

In the context of the modern global economy, attracting investments has become one of the key factors for the economic growth of countries. In this regard, Armenia, with its reforming economic system, investment promotion policies, and legislation, is gradually strengthening its position as an attractive destination for investors. To promote investments and develop an active investment policy, it is crucial to provide a wide range of tax and customs incentives, implement various state support programs, and establish free economic zones. 

Within the framework of investment projects in priority sectors, imported technological equipment, as well as its components and supplementary parts, raw materials, and supplies, can be exempted from import duties. Additionally, for technological equipment and raw materials imported for further processing, a 0% value-added tax (VAT) rate is applied. Tax incentives are also provided for high-tech and medical sectors. In particular, medical assistance and services, including disease prevention, diagnostics, medical consultation, treatment, rehabilitation, and medical examination services, are exempt from VAT.

The government also implements a number of support programs in agriculture, pharmaceuticals, and high-tech sectors, such as:

• The Industrial Crab Farming Development Program (2024–2026), which offers up to 50% reimbursement for the construction of industrial crab farms and investment expenses.
• The Pharmaceutical Regulation Reimbursement Program, under which drug manufacturers can receive up to 50% reimbursement for drug registration, compliance with EAEU regulations, testing, and laboratory expenses.
• The High-Tech Development Program, which provides up to 60% reimbursement of income tax for companies in the high-tech sector.

Investors are particularly attracted to Armenia’s free economic zones, which offer highly favorable conditions for business. Companies operating in these zones can benefit from a minimal tax burden, allowing them to focus on production, innovation, and export development