Armenia: a new popular destination for relocation?

Armenia: a newly popular relocation destination?

An increasing number of citizens of various countries are considering Armenia as a country for long-term residence. At present, the possibility of naturalisation is becoming a key factor in choosing a country, rather than tax regimes or everyday conveniences.

If initially Georgia was an excellent choice due to its long visa-free regime, allowing one to remain in Georgia for up to 12 months per year (as compared with Armenia, where the visa-free regime for Russian citizens applies for no more than 180 days per year and the period is not reset upon crossing the border), the situation has changed over time.

At present, Armenia and Georgia are considered as jurisdictions for further integration. Let us examine these countries in terms of several important aspects.

Naturalisation: main requirements

The main requirements for naturalisation are:

In Georgia:

• Being lawfully present in the country for at least 10 years;
• Knowledge of the language, history and the basics of law;
• Having employment, a business, real estate, or a shareholding in a Georgian company.

In Armenia, the requirements are:

• Lawful residence in Armenia for at least 3 years;
• Basic knowledge of the language and the Constitution.

Moreover, an advantage of Armenia is that it recognises multiple citizenship, i.e., it does not require an applicant to renounce their previous citizenship when obtaining a new one. Georgia, in theory, may also do so, but only on the basis of a special decree of the President and in exceptional cases.

In addition, in Georgia there is increased unpredictability in the outcome of the issuance of a residence permit or the decision on naturalisation. Formally, an applicant who has submitted documents for naturalisation meets all requirements, yet there remains a high likelihood of refusal.

Citizenship by marriage

Marriage to a citizen (male or female) of Georgia or Armenia provides preferential treatment for naturalisation in both cases.

Thus, for naturalisation in Georgia, the spouse must:

• Have been married for at least 5 years;
• Have lawfully resided in the country for at least 5 years;
• Demonstrate knowledge of the language, history and the basics of law.

In the case of Armenia, the spouse must:

• Have been married for 2 years,
• Of which at least 365 days must be spent lawfully in Armenia.

Both countries consider an applicant’s immigration history and assess their reliability. At the same time, reliability checks in Georgia are stricter, and the applicant is additionally screened for participation in political activities and connections with “radical political groups”.

Tax aspect: the 1% regime for sole-trader spouses and a naturalisation strategy

Notwithstanding the above, both Georgia and Armenia offer very attractive conditions for running a private business. Georgia has a 1% turnover tax regime for individual entrepreneurs/sole traders if turnover does not exceed 500,000 GEL (approximately $180,000) per year.

Armenia provides 1% of turnover (up to $57,000 per year) not for all types of activity; however, among the activities for which this relief is available is IT.

It should be noted that naturalisation conditions are becoming the priority factor in choosing a country, as demand has already emerged for building a long-term connection with a new country.

Authors: Yaroslavna Zadesenskaya, Aleksei Molchanov.