Unlocking high-tech potential in the South Caucasus through a legacy of engineering and digital growth.
Armenian Dram (AMD)
Yerevan
GMT+4 (GET)
Armenia is a landlocked country in the South Caucasus, known for its deep historical roots and a rapidly evolving digital economy. In recent years, it has become a hotspot for tech startups and international R&D centers. With a government that prioritizes the high-tech sector and offers significant tax incentives, Armenia is a strategic choice for businesses looking for technical excellence and a competitive cost structure.
Situated between the Black and Caspian Seas, Armenia is a mountainous country bordering Georgia, Turkey, Iran, and Azerbaijan. Its landscape is dominated by the Armenian Highlands, featuring rugged peaks, alpine lakes (including the magnificent Lake Sevan), and fertile valleys. The capital, Yerevan, is one of the world's oldest continuously inhabited cities and the primary hub for the country's tech industry.
Armenia has a highland continental climate with hot, sunny summers and cold, snowy winters. Because of the varying altitudes, the weather can change significantly from one region to another. In Yerevan, summer temperatures often exceed 30°C (86°F), while winter can bring crisp air and temperatures below freezing, perfect for the nearby ski resorts.
As the first nation to officially adopt Christianity (in 301 AD), Armenia has a rich cultural heritage reflected in its ancient monasteries and unique alphabet. It is a society that values education, music, and the arts. Armenians are known for their hospitality and a strong entrepreneurial spirit. The "Silicon Mountains" initiative reflects a culture that is moving fast towards a digital future while staying deeply connected to its ancient roots.
Armenian is the official language, written in its own beautiful script. Russian is widely spoken and understood across all generations. However, English has become the dominant second language in the tech and business sectors, with the majority of professionals in these industries being fully fluent.
Armenia uses a simplified flat tax system. As of 2026, the Personal Income Tax (PIT) on employment income is a flat 20%.
Armenia's payroll system is unique in that most contributions are deducted from the employee's gross salary, with the employer responsible for withholding and remitting them. Starting in 2026, a new universal health insurance system has been introduced.
| Types of Contribution | Rate / Amount (Employee Side) | Rate / Amount (Employer Side) |
|---|---|---|
| Personal Income Tax | 20% | - |
| Pension Contribution | 5% (up to 500k AMD salary) | - |
| Military Stamp Duty | Fixed (AMD 1,500 – 15,000) | - |
| New! Mandatory Health Insurance (2026) | AMD 10,800 / month | - |
| Total Payroll Tax Burden | ~25% + fixed fees | 0% (Standard) |
| Occasion | Date in 2026 |
|---|---|
| New Year's Day | January 1–2 |
| Armenian Christmas | January 6 |
| National Army Day | January 28 |
| International Women's Day | March 8 |
| Easter Monday | April 13 |
| Genocide Remembrance Day | April 24 |
| International Labor Day | May 1 |
| Victory and Peace Day | May 9 |
| First Republic Day | May 28 |
| Constitution Day | July 5 |
| Independence Day | September 21 |
Salaries are paid monthly in Armenian Dram (AMD). While international companies often benchmark salaries in USD to stay competitive in the tech market, all payments must be executed in the national currency through local bank transfers.
The standard work week is 40 hours (typically 5 days a week). Employers must maintain records of working time. Overtime is permitted but must be compensated at 1.5 times the hourly rate or with extra time off, as agreed with the employee.
Employees are entitled to a minimum of 20 working days of paid annual leave per year.
Female employees receive 140 days of fully paid maternity leave (70 days before and 70 days after birth). This is increased to 155 days for complicated births and 180 days for multiple births.
Fathers are entitled to 5 days of paid leave at 100% of their salary, which must be taken within the first 30 days after the child's birth.
Employees who legally adopt a newborn child are entitled to leave starting from the day of adoption until the child reaches 70 days of age, with full social protections.