Foreign Land Ownership in Kazakhstan

Standard Commercial Land

For commercial, industrial, and residential development land, and for plots carrying buildings, foreign investors may hold ownership title. The exception is the frontier zone of the State Border, where foreigners, foreign legal entities and Kazakhstani entities with foreign participation may not own land (Article 23(4)). The right to a plot does not settle who may own housing on it: a foreign individual without a permanent residence permit may not own housing (see Property Registration in Kazakhstan). The notarial rules also list plots for personal farming, gardening and summer houses among the land that may not be transferred to foreigners (Ministry of Justice Order No. 31 of 31 January 2012, para. 49). Long-term leases of 5 to 49 years are also available and provide substantial practical control: they are registrable, may be alienated, and may be pledged for the term of the lease.

Agricultural Land

Agricultural land is closed to foreign investors. Under Article 24(1), as amended in 2021, foreigners, stateless persons, foreign legal entities, Kazakhstani legal entities with foreign participation, international organisations and scientific centres with international participation may not hold agricultural land, either as owners or under a land use right, including a lease. There is no approval route, and a foreign-owned Kazakhstani subsidiary does not solve the problem. A person holding land it may not hold must alienate or re-register it, failing which the local executive authority may sue to take the plot back (Article 66). Bond Stone advises agribusiness investors on how the ban affects their structure.

AIFC Territory

The AIFC Constitutional Statute No. 438-V creates no separate land regime. Its land provision is a tax relief for qualifying participants (Art. 6(8)), AIFC acts cover relations among AIFC participants and bodies (Art. 4(3)), and Kazakhstan law applies where they are silent (Art. 4(1)). AIFC entities may occupy premises in the AIFC under contracts governed by AIFC law, but this does not change the Land Code rules on who may hold land.

Diplomatic Premises

Foreign states and international organisations may receive plots without an auction under international treaties (Land Code, Article 48). This exception is narrow and has no commercial application for private foreign investors.

USE RIGHT TYPE 1

Short-Term Lease

Term: up to 5 years (Article 35). Temporary paid land use for shorter project cycles. A short-term right generally may not be pledged (Article 77).

USE RIGHT TYPE 2

Long-Term Lease

Term: 5–49 years (Article 35); the preferred structure for commercial development projects. May be pledged for the term of the lease (Article 77). A holder who bought the right from the state may sublease it and alienate it without the owner's consent, on notice to the authorised body (Article 37). Used extensively in hotel, industrial, and infrastructure projects by foreign investors operating through Kazakhstani SPVs.

USE RIGHT TYPE 3

Secondary Land Use (Sublease)

The primary land user may transfer a plot or part of it for temporary use without giving up its own right, on notice to the authorised body (Article 38). The secondary user cannot pass the right on, and agricultural land used for agricultural production may not be sublet. The Land Code has no separate right to build or superficies: rights to a building and to the land under it are inseparable and cannot be transferred apart (Article 52).

Standard SPV: Foreign Investor → Kazakhstani LLP

The foreign investor holds 100% of a Kazakhstani LLP or JSC. The LLP holds land as its asset. 100% foreign ownership of Kazakhstani entities is permitted without restriction in most sectors. The LLP may own land for development or carrying buildings. This is the baseline structure for foreign land investment in Kazakhstan.

AIFC Holding Variant

Foreign investor → AIFC Private Company → Kazakhstani LLP → land. The AIFC company allows a shareholder agreement under AIFC law, which draws on English common law, AIFC Court access for shareholder disputes, and a recognised holding jurisdiction for project financing.

BIT Protection

Kazakhstan has signed bilateral investment treaties (BITs) with China, the UK, the UAE, Germany, South Korea, and other investor-origin states. Not every signed treaty is in force, so the status of the specific treaty must be confirmed first. Most BIT definitions of "investment" cover shares in a Kazakhstani legal entity, so a foreign investor holding a Kazakhstani SPV may keep treaty protection, including access to arbitration, for its investment in the land. Bond Stone reviews applicable BIT coverage as part of each land structuring instruction.

Local Executive Authority Land Allocation

State-owned land is allocated by the local executive authority. Land not already in use is normally granted through electronic tenders or auctions, with listed exceptions such as investment projects and special economic zone participants (Article 48). In the capital and in cities and towns, the review of an application takes up to 30 working days, excluding the applicant's own steps (Article 44-2). Bond Stone manages the application process and advises on privatisation (transfer from state to entity ownership) where available.