Be Careful What You Wish For, Passport Bros
Our sources on the ground have just informed us with an update on legal changes with respect to Armenian citizenship that you need to know! Armenia has recently launched a Citizenship by Investment program. Armenia has become an interesting country to have exposure given the high interest deposits, non-PC or woke culture, relationship with not only Russia & the rest of Europe but Iran as well, low tax on investment funds & low cost of living.
“The Armenian Citizenship Law was amended on July 7, 2022 now allowing foreigners to obtain citizenship through a significant economic, cultural, or athletic contribution. The law exempts applicants from standard naturalization requirements such as language or stay requirements.”
By my estimate, there are about 8 different ways one can qualify–> To qualify for the programme investors must make a significant contribution to Armenia’s economy, starting from a minimum of $100,000 USD. The challenging part of Armenia is that there are so many different ways to obtain residency (& now citizenship) that it’s difficult to keep track of what path works and what path does not. Needless to say, it’s a good problem to have as an expat. However there is a real problem that not many people talk about.
Acquiring Armenian nationality should not have any negative tax consequences, as Armenia’s tax system is not based on citizenship. However, if you are a foreign employee or private entrepreneur working in Armenia, obtaining Armenian citizenship may trigger obligations to make social and military contribution.
The update relates to military service for Armenian citizens:
Recent amendments to Armenia’s Law on Military Service, effective from February 12, 2024, introduce significant considerations for male citizens aged 27-37 aiming to acquire Armenian citizenship post age 27.
Key Points of the Amended Law:
- Eligibility: The law applies to male individuals aged 27-37 who become Armenian citizens post-27 and have either not completed military service or have completed less than 12 months of service or have completed less than 18 months of alternative military service in a foreign country prior to acquiring Armenian citizenship.
- Mandatory Service: There is now a requirement to complete a 12-month mandatory military service period or an alternative service.
- Opt-Out Payment Option: Individuals may choose to opt out of this mandatory service by contributing AMD 2,500,000 (approximately USD 6,200).
Regarding Retroactive Effect:
The Ministry of Defense of the Republic of Armenia has clarified, in response to our formal inquiry, that this law does not have retroactive effect.
Options for Citizens Who Evaded Military Service Before Age 27:
These amendments also address male citizens who were Armenian nationals before turning 27 and have illegally evaded military service. The law now offers the following options for legalizing their status:
Either–>
- Full 24-Month Enlistment.
- 12-Month Service plus AMD 2,500,000 (approximately USD 6,200) Payment.
- 6-Month Service plus AMD 5,000,000 (approximately USD 12,400) Payment.
- 1-Month Service plus AMD 8,000,000 (approximately USD 19,900) Payment.
- Complete Exemption: Achievable through a contribution of AMD 15,000,000 (approximately USD 37,000).
To clarify, those who are between 27 and 37 who haven’t served for 12 months already or 18 months in their own country–> can opt out by paying approximately 6,200 USD to the state.
Those who are younger than 27 can opt out if they pay 37,000 USD or smaller amounts in conjunction with military time served. This is very important because if you’ve seen our news report page, Armenia and Azerbaijan are eagerly ramping up their war conflicts once again. Armenia also has a poor history with Turkey which may spiral into conflict as well.
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Argentina
Unlike most other countries, Argentine nationality cannot be renounced and can only be revoked if it was obtained through criminal means, such as fraudulent documentation. If Argentina ever decided to tax citizens like the United States (based on citizenship) than there would be no method by which you could renounce citizenship to evade these forced taxes. The only way would be to leave the country and illegally not pay them.
This is very important to know because the time to receive Argentinian citizenship via naturalization is amongst the lowest in the world (after just 2 years of residency!).
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