Armenian parliament has approved amendments to the law on determining the procedure for cadastral valuation of real estate close to market value, implying a change in the cadastral value of real estate and a subsequent change in property tax, said Bright Armenia party MP Arkady Khachatryan at the Armenian parliament on Wednesday.

According to him, the MP noted that instead of the current property and land tax, a unified real estate tax (land + building - ed.) will be introduced, defining land as its object and ensuring the transition from cadastral value to real market value, not affecting agricultural land. So cadastral prices will be formed, close to market prices, which are supposed to be used for taxation and various transactions.

“It is not just about expensive real estate. All this means that the cadastral value of real estate in Armenia will increase sharply. This should come into force in 2021,” he said.

The Government plans to create a competitive and unified assessment system. The big difference between the market and cadastral value will be eliminated, tax legislation will be greatly facilitated. Country zoning will be carried out. Its territory will be divided into 12 zones, their number is planned to be increased to 20 in the future, after which the authorities will determine the tax-free threshold for the value of real estate. Currently, it is AMD 3 million, and it is planned to double it. The base cost is proposed to be reviewed every three years, despite the fact that the last time it was revised in 2003. These changes will enter into force on January 1, 2021, after which property tax rates, a minimum threshold and new zoning estimates will be determined. According to experts, property tax in the center of Yerevan will increase by more than five times.