Foreign Land Ownership in Kazakhstan

Standard Commercial Land

For commercial, industrial, and residential development land, foreign investors are restricted to use rights only — not ownership title. Long-term use rights of up to 49 years are available and provide substantial practical control: they are registrable, transferable (with consent), and mortgageable, making them a viable substitute for ownership in most commercial contexts.

Agricultural Land

Agricultural land carries additional and stricter restrictions. Foreign nationals and foreign entities may not hold agricultural land even on a use-right basis without special government approval. For agribusiness investors, Bond Stone advises on the approved structures — typically a Kazakh operating entity with domestic land holding — and on the approval process where required.

AIFC Territory

Within the physical AIFC territory at Expo, Astana, specific land arrangements operate under AIFC rules rather than the general Land Code regime. AIFC entities may occupy AIFC-territory premises under AIFC-governed arrangements. This is a narrow carve-out and does not affect the general Land Code restriction applicable to land elsewhere in Kazakhstan.

Diplomatic Premises

Foreign states and intergovernmental organisations may hold diplomatic premises land under separate treaty arrangements. This exception is narrow, operates by bilateral treaty, and has no commercial application for private foreign investors.

USE RIGHT TYPE 1

Temporary Land Use Right

Pravo vremennogo pol’zovaniya. Term: up to 49 years; granted by local Akimat for specified purposes (construction, industrial use, tourism). Used for shorter project cycles or where long-term right is not available. Transferable and mortgageable with Akimat consent.

USE RIGHT TYPE 2

Long-Term Land Use Right

Pravo dolgosrochnogo pol’zovaniya. Term: 10–49 years; the preferred structure for commercial development projects. Freely transferable and mortgageable once registered in the KNB. Used extensively in hotel, industrial, and infrastructure projects by foreign investors operating through Kazakh SPVs.

USE RIGHT TYPE 3

Right to Build (Superficies)

Pravo zastroyki — the superficies right. Permits construction on a plot held under a use right; building ownership is legally separate from land ownership. Commonly used for hotels, industrial facilities, and mixed-use developments where the investor constructs on state or municipal land without acquiring the underlying plot.

Standard SPV: Foreign Investor → Kazakh TOO

The foreign investor holds 100% of a Kazakh TOO or AO. The TOO holds land as its asset. 100% foreign ownership of Kazakh entities is permitted without restriction in most sectors. The TOO qualifies for domestic land ownership and for local content compliance purposes. This is the baseline structure for the vast majority of foreign land investment in Kazakhstan.

AIFC Holding Variant

Foreign investor → AIFC Private Company → Kazakh TOO → land. The AIFC layer provides an English common law contract layer for the shareholder agreement, AIFC Court access for shareholder disputes, and a recognised holding jurisdiction for project financing. This structure is particularly common for Chinese, Turkish, and Gulf investors familiar with common law holding frameworks.

BIT Protection

Kazakhstan has bilateral investment treaties (BITs) with China, the UK, the UAE, Germany, South Korea, and most major investor-origin states. Most BIT definitions of “investment” encompass shares in a Kazakh legal entity, meaning a foreign investor holding a Kazakh SPV retains treaty protections — including arbitration rights — over the underlying land asset. Bond Stone reviews applicable BIT coverage as part of each land structuring instruction.

Akimat Land Allocation

State-owned land is allocated by the local Akimat (municipal executive body) on application — by competitive tender or direct allocation depending on land category and location. The standard timeline for Akimat allocation is 30–60 days from a complete application; large or complex plots may require government land commission approval. Bond Stone manages the Akimat application process and advises on privatisation (transfer from state to entity ownership) where available.