The Cost of Living Index is 40.2 (NYC = 100), making Armenia an affordable country. Groceries (36.2) and restaurants (40.5) are also relatively inexpensive compared to NYC.

The Property Price to Income Ratio is 16.0 years, indicating a very expensive housing market relative to local incomes. The Rent Index is 14.5, suggesting rentals are more affordable than purchasing.

The Purchasing Power Index is 51.9 (NYC = 100), indicating low buying power compared to NYC. This suggests that while costs are low, average incomes are also relatively low.

Armenia has a flat personal income tax rate of 20% for both residents and non-residents. The standard corporate tax rate is 18%, and the standard VAT rate is 20%. Property taxes are increasing, reaching 75% of the new market-based cadastral value in 2025 and 100% in 2026. Special tax incentives exist for the IT sector.

Armenia's startup ecosystem is thriving, ranked #54 globally in the 2025 Global Startup Ecosystem Index, with Yerevan showing significant growth. The country has produced unicorns and benefits from strong government support and a tech diaspora. The business environment is considered increasingly attractive with user-friendly digital tax administration.

Armenia has a mandatory funded pension system for those born after January 1, 1974, with employee contributions ranging from 5-10% of income. Foreign nationals may be eligible for exemption from these contributions starting July 1, 2025. Universal healthcare coverage was postponed for implementation in 2025 due to fiscal constraints, with healthcare benefits generally financed from general taxation. Pensions saw an increase for many starting April 1, 2026.

Deposits in Armenia are protected by the state-backed Deposit Guarantee Fund. The coverage limit is AMD 16,000,000 (approximately USD 43,200 at an exchange rate of 1 AMD = 0.0027 USD) for AMD-denominated accounts and AMD 7,000,000 for foreign currency accounts per depositor per bank. The banking sector is sound, well-regulated, highly capitalized, and liquid, with low non-performing loans. Foreigners can open bank accounts without restrictions.