Land Use Rights in Kazakhstan
REAL ESTATE & CONSTRUCTION · LAND USE RIGHTS & AKIMAT ALLOCATION
While foreign investors cannot hold land ownership title in Kazakhstan, the Land Code provides a well-developed system of land use rights that deliver substantial practical control over land for commercial, industrial, and development purposes. These rights — granted by the local Akimat (municipal authority) or acquired from existing right-holders — are registrable in the Real Estate Rights Register, transferable with consent, and mortgageable, making them a viable and financeable foundation for major investment projects.
This guide covers the mechanics of land use rights in Kazakhstan: types and durations, how to obtain them from the Akimat, transferability and subletting, use as mortgage security, Special Economic Zone regimes, and investor protection against unlawful cancellation. For the broader question of land ownership restrictions applicable to foreign investors, see Foreign Land Ownership in Kazakhstan →
Primary authority: Land Code No. 442-II ZRK (Arts. 37, 48, 64–72); Law on Mortgage of Immovable Property No. 2723 — adilet.zan.kz
Sectors: Mining & Energy · Industrial Development · Hotel & Hospitality · Special Economic Zones · Agricultural Investment
Types of Land Use Rights Under the Kazakhstan Land Code
TYPE 1
Temporary Land Use Right
Pravo vremennogo pol’zovaniya. Granted for a specified term up to 49 years. Used for shorter project cycles, exploration licences, and situations where a long-term right is unavailable. Transferable and sublettable with Akimat consent for state land.
Max term: 49 years | Mortgageable: Yes (registered)
TYPE 2
Long-Term Land Use Right
Pravo dolgosrochnogo pol’zovaniya. Term: 10–49 years. The preferred instrument for commercial and industrial development. Freely transferable; mortgageable; the standard security instrument for project finance in Kazakhstan. More commercially flexible than the temporary right.
Term: 10–49 years | Mortgageable: Yes | Preferred for: commercial development
TYPE 3
Right to Build (Superficies)
Pravo zastroyki. Permits construction on a plot held under a use right; building ownership is separate from land ownership. Common for hotels, factories, and infrastructure built on state land. The building may be sold or mortgaged independently of the underlying land use right.
Building separate from land: Yes | Used for: construction on state/municipal land
TYPE 4
Gratuitous Land Use Right
Pravo bezvozmezdnogo pol’zovaniya. Available to state enterprises, public organisations, and in certain SEZ contexts. Not available to commercial foreign investors in standard circumstances but relevant as a comparison and in public-private partnership structures.
Available to foreign investors: Rarely — SEZ and PPP contexts only
How to Obtain a Land Use Right from the Akimat
State-owned land is allocated by the local Akimat (municipality) — either through competitive tender or direct allocation, depending on land category, location, and permitted use. Agricultural land and land in certain strategic zones requires specific approval procedures. The following steps apply to the standard commercial allocation process.
Application
Submit to the Akimat land committee: entity registration documents, project description, proposed land use purpose, cadastral data for the requested plot. For competitive tender, submit bid documentation per the tender terms. Standard timeline: 30–60 days from a complete application.
Akimat Decision
The Akimat land commission reviews the application and issues an allocation decision. Large or strategically significant plots may be referred to the regional governor’s office or, in some cases, a government land commission. Bond Stone manages the application and commission engagement process, including site visit coordination.
KNB Registration
Once the Akimat decision is issued, the land use right must be registered in the Real Estate Rights Register (KNB) to be enforceable against third parties. Registration follows the standard GCC procedure — see Property Registration in Kazakhstan → Bond Stone manages the KNB registration step.
Transferability, Subletting, and Mortgage of Land Use Rights
Transfer and Assignment
A registered land use right may be transferred to a third party with Akimat consent where the land is state-owned. Privately allocated land use rights (granted by a private landowner) are transferable under the terms of the underlying agreement. Transfer must be registered in the KNB to be effective against third parties. Bond Stone drafts assignment agreements and manages the Akimat consent process.
Subletting
A land use right holder may sublet the land plot to a sub-lessee — again, with Akimat consent for state land. The sub-lease term may not exceed the remaining term of the primary use right. Sub-lease registration is required for terms exceeding one year. This mechanism is frequently used in industrial park and logistics hub structures.
Mortgage Security
A registered long-term land use right may be pledged as mortgage security under the Law on Mortgage of Immovable Property No. 2723. The mortgage is registered in the KNB alongside the use right. Lenders — including banks operating under AIFC law — regularly accept registered Kazakhstan land use rights as security for project finance. Bond Stone structures the mortgage instrument and manages KNB registration.
Termination & Investor Protection
The Akimat may cancel a land use right only on grounds expressly prescribed by the Land Code — including material breach of permitted use conditions, non-payment of land tax, or public interest grounds. Unlawful cancellation may be challenged before the Kazakhstan courts; compensation may be claimed. Foreign investors with applicable BIT coverage may access international arbitration for expropriation-equivalent measures.
Land Use Rights in Special Economic Zones
Kazakhstan’s SEZs offer land use rights under simplified allocation procedures with enhanced fiscal incentives. SEZ participant status is required before land rights can be obtained within the zone. The governing regime varies by SEZ — Bond Stone advises on the applicable SEZ law and the participant registration process for each zone.
Khorgos Eastern Gate
China-Kazakhstan border SEZ. Land use rights available to SEZ participants for logistics, warehousing, and light manufacturing. Strong pull for Chinese investors given proximity to Chinese rail and road networks. VAT exemption on goods handled within the zone; customs facilitation for cross-border transit.
Ontustik (South Kazakhstan)
Textile and light manufacturing SEZ near Shymkent. Land use rights for participants with CIT reduction and customs exemptions. Relevant for Turkish and Chinese textile and apparel investors entering the Kazakh and CIS market.
Pavlodar & Other Industrial SEZs
Heavy industry, petrochemical, and metal processing SEZs in northern Kazakhstan. Land use rights available for industrial facilities; property tax exemption during initial operating period. Bond Stone advises on SEZ participant applications and land use right procurement for industrial investors.
Frequently Asked Questions — Land Use Rights in Kazakhstan
Can land use rights in Kazakhstan be used as mortgage security?
Yes. Registered long-term land use rights in Kazakhstan may be pledged as mortgage security under the Law on Mortgage of Immovable Property No. 2723. The mortgage must be registered in the KNB to be enforceable against third parties. This makes long-term land use rights a financeable asset for project development — including for AIFC-governed project finance structures where the lending agreement operates under English law and the security is registered under Kazakh law.
What is the difference between temporary and long-term land use rights in Kazakhstan?
Temporary land use rights are granted for specified terms up to 49 years and are used for shorter project cycles or where a long-term right is not available. Long-term land use rights (10–49 years) are more freely transferable and are the preferred instrument for commercial and industrial development. Both are registrable and mortgageable, but long-term rights provide greater flexibility and are more readily accepted as security by project lenders.
Are land use rights available in Special Economic Zones in Kazakhstan?
Yes. Kazakhstan’s SEZs — including Khorgos Eastern Gate, Ontustik, Pavlodar, and others — offer land use rights to SEZ participants under simplified allocation procedures and with additional tax incentives including VAT exemption, reduced corporate income tax, and customs relief. SEZ participant status must be obtained before land rights can be accessed. Bond Stone advises on SEZ participant applications and land right procurement within each zone.
Can an Akimat cancel a land use right in Kazakhstan?
Grounds for cancellation are limited and must be expressly prescribed by the Land Code — including non-payment of land tax, material breach of permitted use conditions, and certain public interest grounds. Improper cancellation may be challenged before the Kazakhstan courts, and compensation may be claimed. Foreign investors with applicable bilateral investment treaty (BIT) coverage may additionally have access to international arbitration for expropriation-equivalent measures, including unlawful cancellation of registered land rights.
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Primary authority: adilet.zan.kz — Land Code No. 442-II ZRK Arts. 37, 48, 64–72; Law on Mortgage of Immovable Property No. 2723