What are state in-kind grants?

State in-kind grants are a form of government investment incentive under Article 281 of the Entrepreneurial Code of the Republic of Kazakhstan No. 375-V dated 29 October 2015. The state provides qualifying investors with: land plots; buildings and structures; machinery and equipment — free of charge as a grant for the purpose of implementing an investment project in Kazakhstan. The granted assets become the property of the investor upon fulfilment of the contractual investment obligations specified in the investment contract.

Eligible investors

State in-kind grants are available to investors implementing: ordinary investment projects and investment priority projects under the Entrepreneurial Code in eligible sectors. The investor must be a Kazakhstani legal entity — a foreign investor must therefore establish a Kazakhstani subsidiary to receive a state in-kind grant. Bond Stone advises on establishing the Kazakhstani investment vehicle to access state in-kind grant eligibility.

Grant cap — 30% of total investment

The value of state in-kind grants is limited to 30% of the total investment in fixed assets under the investment contract. The grant is valued at the market value of the transferred assets at the time of transfer. The 30% cap is a hard limit — investors cannot receive in-kind grants exceeding this proportion of their total investment regardless of the assets available. Bond Stone advises on structuring investment contracts to optimise the use of the in-kind grant within the 30% cap.

Conditions for ownership transfer

The granted assets are transferred to the investor provisionally at the commencement of the investment project — but legal title transfers to the investor only upon completion of the contractual investment obligations. If the investor fails to fulfil its obligations, the state may reclaim the granted assets. Bond Stone advises on the contractual conditions for ownership transfer and on the risk of asset reclamation in the event of investment contract non-compliance.

Types of grantable assets

State in-kind grants may comprise: land plots — transferred under land use rights initially, with ownership transfer upon obligation fulfilment; buildings and structures — state-owned industrial and commercial property transferred for investment project use; machinery and equipment — state-owned production equipment transferred to the investor. The availability of specific assets depends on the relevant akimat (local municipality) and the assets in its inventory available for grant. Bond Stone advises on identifying available grant assets and coordinating with the relevant akimat.

Application procedure

Applications for state in-kind grants are submitted to the Committee on Investments together with the investment contract application. The investor must: identify the specific assets sought; confirm their availability with the relevant state authority; and demonstrate that the grant value does not exceed 30% of total investment. Bond Stone prepares and submits in-kind grant applications as part of the investment contract process.

Land Grant — Manufacturing Facility

State Grants · Kazakhstan · Manufacturing

Advising a foreign investor on applying for a state in-kind land grant for a manufacturing facility — land plot identification, akimat coordination, 30% investment cap compliance, and investment contract conditions for ownership transfer.

Equipment Grant — Industrial Project

State Grants · Kazakhstan · Industrial

Advising an investor on receiving state-owned production equipment as an in-kind grant — equipment valuation, grant cap analysis, investment contract conditions, and legal title transfer upon obligation fulfilment.

Building Grant — Processing Facility

State Grants · Kazakhstan · Manufacturing

Advising on receiving a state-owned building as an in-kind grant for a food processing facility — building condition assessment, provisional transfer, investment obligation milestones, and title transfer documentation.

Grant + IPP — Combined Incentive

State Grants · Kazakhstan · Advisory

Advising on combining state in-kind land and building grants with Investment Priority Project tax incentives — grant cap analysis, investment contract integration, and overall incentive package optimisation.

Grant Reclamation Risk — Compliance

State Grants · Kazakhstan · Compliance

Advising an investor on managing the risk of in-kind grant reclamation — investment obligation monitoring, compliance reporting, contract amendment options where investment milestones are at risk, and asset protection strategy.

Akimat Coordination — Asset Availability

State Grants · Kazakhstan · Regulatory

Coordinating with regional akimats to identify available state assets for in-kind grant — land plot availability search, building inventory review, and negotiation of asset terms as part of investment contract application.