Free Economic Zones in Armenia

Free economic zones (FEZ), also known as free economic territories (FETs) or simply free zones (FZ), are regions specifically designated for trade activities that are taxed differently from the rest of the country. They are either taxed lightly or not at all, bolstering economic activity. Each country has its own FEZ rules, depending on the country of export as well. The World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures (SCM) has more information on these territories. Some of these zones are also called free ports.

Armenia’s FEZ include:

• Alliance (for Hi-Tech and Pharmaceuticals) in Yerevan
• Meridian (Jewelry and Watchmaking) in Yerevan
• Meghri (for cooperation with Iran, 2km from the Iranian “Aras” FEZ)
• ECOS in the Hrazdan region is, focusing on production, Hi-Tech, and blockchain

An investor can be a FEZ resident by obtaining permission from the Government of Armenia upon evaluation of Application, Business Plan, and Reference provided by the organizer about activities performed in the FEZ. The process could take up to 4 months. Click here for more.

Companies operating out the different FEZ’s are exempt from profit tax, value added tax, excise tax and customs fees, paying only income tax.

An investor can be a FEZ resident by obtaining permission from the Government of Armenia upon evaluation of Application, Business Plan, and Reference provided by the organizer about activities performed in the FEZ. The process could take up to 4 months. To become a FEZ resident you must be either a commercial legal entity, branch office registered in Armenia, or individual entrepreneur. Representatives of foreign organizations may also apply for residency. Each FEZ has its own requirements as well. It is recommended to get into contact off www.fez.am.

It should be noted that foreign citizens who are planning to invest in or establish a business in Armenia may qualify for one of the following residency permits:

• Temporary residence status, issued in the form of a card with a validity of 1 year
• Permanent residence status, issued in the form of a card with a validity of 5 years
• Special residence status, issued in the form of a passport with a validity of 10 years