Published on and written by Cyril Jarnias
Moving abroad often sparks the desire to secure part of one’s assets by purchasing property locally. In Kazakhstan, the combination of a growing economy, a still-affordable real estate market, and high rental yields is attracting more and more expatriates. But between restrictions on land ownership, currency volatility, and specific tax rules, it’s clearly not a plug-and-play market.
This guide covers the essential aspects for an expatriate: the legal framework, market state, prices and yields, taxation, the purchase process, structuring options (via local company or AIFC), and the main risks to anticipate.
A real estate market driven by a growing economy
Kazakhstan is Central Asia’s leading economy and the world’s largest landlocked country. Its GDP was around $224 billion in 2024, with a projected growth trajectory between 3.5% and 4.7% per year until 2028. Authorities have high ambitions: targeting $355 billion in GDP by 2028, $450 billion the following year, and around $900 billion by 2050.
This momentum is built on several pillars. First, an exceptionally rich subsoil in oil, gas, uranium, chrome, copper, zinc, and lead. Second, a gradual diversification into transportation, logistics, finance, agribusiness, manufacturing, and tech. Finally, a strategic geographic position at the heart of the Chinese Belt and Road Initiative, making the country a logistical bridge between China and Europe.
Kazakhstan ranks 28th globally for ease of doing business according to the World Bank.
This macroeconomic trajectory directly fuels the real estate market. The population (about 19.2 million inhabitants, 58% in urban areas) is growing and could reach 24 million by 2050. Fertility remains high (about 2.7 children per woman) and urbanization is rapid. Result: demand for housing, offices, logistics warehouses, and commercial space is exploding, especially in Almaty, Astana, and Shymkent.
The French real estate stock has nearly 5.9 million housing units, representing over 419 million square meters.
Public authorities are actively pushing construction with a series of programs (“Affordable Housing 2020”, “Nurly Zher”, “7-20-25”, “Otau”, “Nauryz”). Since 2020, residents can also unlock a portion of their pension savings to buy a home, which boosted demand and prices from 2021 onward.
In this context, real estate has become the preferred asset for a large part of the local population: nearly one in three Kazakhs considers real estate the best way to invest their money, and over 80% favor residential property.
A cyclical market, capable of strong growth… and corrections
Before projecting oneself as an investor, it’s essential to understand the cyclical — sometimes brutal — nature of the Kazakhstani real estate market.
Between the mid-2000s and the global financial crisis, prices literally skyrocketed: between 2005 and 2007, dollar prices for new housing jumped 148%, while secondary market prices soared 272%. The national housing price index peaked at over 160 points in 2007 (base 2006), before plunging to under 90 points in 2009. During this period, some years saw corrections exceeding -30%, others increases of over 60%.
Since 2010, several distinct phases can be identified:
| Period | Annual Price Trend | Dominant Economic Context |
|---|---|---|
| 2010–2014 | +10% to +15% | Commodities boom |
| 2015–2017 | –5% to –10% | Oil shock, tenge devaluations |
| 2018–2020 | +3% to +6% | Gradual recovery |
| 2021–today | +5% to +8% | Post-Covid, public support, strong demand |
More recently, 2021 was marked by a spectacular surge, fueled by pension reform: the possibility to use pension savings to buy a home pushed primary prices up 17% and secondary prices up 24% in one year. In some cities, the increase reached or exceeded 70% over a short period.
In 2022, the massive arrival of Russians caused a shock with a 45% year-on-year increase in rents. Although the increase has since normalized (under 8% in 2024), this episode illustrates the market’s persistent vulnerability to external shocks, whether economic, geopolitical, or monetary.
For an expatriate investor, this means Kazakhstan offers significant capital gain potential, especially in large, growing urban areas, but one must accept significantly higher volatility than in mature markets.
What a foreigner can (and cannot) buy
The first trap to avoid when considering real estate in Kazakhstan is projecting the legal framework of one’s home country. Here, the distinction between building and land is central, especially for foreigners.
Ownership of housing and buildings
As a foreigner, several doors remain open:
– you can acquire full ownership of apartments, offices, commercial premises, and other buildings;
– if you have permanent resident status, the law grants you the same rights as citizens to hold housing and most non-agricultural real estate;
– Kazakh companies, even 100% owned by foreign capital, can buy residential and commercial buildings without particular restriction.
The Constitution and Civil Code guarantee the right of ownership, and in practice foreign investors enjoy good legal security over the structures they hold (apartments, offices, shopping centers, warehouses…).
Ownership of a condominium building relates exclusively to the structure. The land (the plot) on which it is built generally belongs to the state or is subject to specific use rights, distinct from ownership of the construction.
Near-total prohibition on buying land
The major limitation for an expatriate concerns land:
– the acquisition of agricultural land by foreigners is prohibited by the Land Code, with very few exceptions;
– land located in border areas or along borders is also closed to foreign ownership;
– more broadly, a foreigner cannot directly hold residential or commercial plots in their own name.
The only cases where a non-Kazakh can, theoretically, access land rights involve very specific uses (construction or maintenance of buildings), but even then the framework remains constrained, and authorities have tightened controls since 2021–2023 to prevent circumvention through shell companies.
In Thailand, foreigners generally cannot own land. They can buy an apartment, office, or warehouse in full ownership, but for a house with a garden or land for commercial use, one must set up a local company and opt for a long-term lease.
Inheritance, marriage, and indirect holding
Kazakh law leaves a few additional entry points:
– a foreigner can inherit real estate located in the country. If they do not have resident status, they must however sell it within a year;
– foreigners married to Kazakh citizens can become indirect owners through the local marital property regime;
– a foreigner who becomes a permanent resident (a heavy procedure) is treated as a citizen for holding a home.
But these cases remain marginal for the typical expatriate investor, who relies mainly on two levers: direct ownership of apartments or offices (without the land) and, for more ambitious projects, setting up a local structure.
Structuring your investment: Kazakh company or AIFC?
To circumvent the prohibition on owning land or to secure more complex operations, many foreigners opt for local legal structures.
The most common route: the Kazakh LLP
The standard vehicle is the “Limited Liability Partnership” (LLP), equivalent to a limited liability company (LLC). It offers several advantages for an expatriate investor:
– it can be 100% owned by foreigners;
– it is authorized to purchase buildings (residential or commercial) and, in some cases, to take certain types of land on long-term lease;
– it allows separation of private assets from rental activity, facilitating management and transfer.
The cost of setting up an LLP typically ranges between $1,000 and $2,000.
For one or two apartments purchased as a complement to one’s portfolio, the structure may seem heavy. However, as soon as one considers a rental portfolio, commercial assets, land leases for 30 or 49 years, or projects with partners, the LLP becomes almost essential.
The high-end option: Astana International Financial Centre
Established in 2018 in the heart of the capital, the AIFC is an international financial center operating under a special jurisdiction based on English common law. It has its own courts and arbitration rules, highly valued by international investors.
The interest of the AIFC for real estate lies in several elements:
A particularly attractive framework for investors and companies, offering substantial benefits until 2066.
Extremely advantageous taxation for participants: 0% corporate and income tax, exemption from property tax and, in some cases, VAT. These benefits are guaranteed until 2066.
Ability to structure funds, holdings, REITs, or investment vehicles with a legal framework familiar to Anglo-Saxon investors.
Very broad openness to foreign capital, facilitating international investments and establishments.
Several listed and unlisted property companies are registered there, including at least four Kazakh REITs. These companies must invest at least 80% of their assets in income-generating real estate (rents) and distribute at least 80% of their annual profits to holders.
An often-cited example is the REIT TSPG, which owns iconic assets like the Dostyk Plaza shopping center in Almaty or Shymkent Plaza. In 2023 alone, this portfolio generated nearly $43.8 million in rents.
For an expatriate, access to local REITs is still largely reserved for private circles or large institutional tickets, but the AIFC ecosystem clearly offers opportunities to structure significant investments, often coupled with a specific visa valid for up to five years.
Buying in practice: steps, timelines, paperwork
On paper, the purchase procedure is relatively standard for a civil law country. In practice, it requires good preparation, especially if you don’t speak Russian or Kazakh.
Documents and prerequisites
Even before signing a preliminary agreement, a foreigner must:
– obtain a tax identification number: IIN for individuals, BIN for companies;
– register as a non-resident taxpayer to obtain the relevant certificate;
– translate and legalize all necessary documents (passport, company statutes, decisions of competent corporate bodies for a company, etc.).
Opening a local bank account is often essential to pay fees, local taxes, or receive rents. For a non-resident, this process can take two weeks to a month. Requirements are increasingly strict, particularly regarding anti-money laundering, and may include providing proof of funds origin, proof of activity, and valid visas.
Typical transaction timeline
Most transactions follow a multi-step sequence:
Acquiring real estate in Kazakhstan follows a structured procedure. It begins with property selection and price negotiation, often in tenge, with an unofficial peg to the euro or dollar for the premium segment. Next, a preliminary contract (agreement) is signed before a notary, usually accompanied by a deposit. A thorough check of the title deed and registration in the land registry (Zhergar) is essential to verify the absence of mortgages, seizures, or other encumbrances. For new builds, a technical audit and developer review (reputation, compliance with seismic standards, deadlines, litigation history) are recommended. The final deed is signed at a notary’s office, with a sworn translator if necessary. Finally, the transaction must be registered with the National Real Estate Registry (Zhergar), via a notary or the public company “Government for Citizens” NJSC.
The average stated timeline for a standard acquisition ranges between three and six weeks, including the time to obtain the IIN/BIN and prepare documents. In practice, one often needs to allow more time if you are not already a resident or if additional authorizations are required (company, land, financing…).
Transaction costs: how much extra to budget beyond the price?
Ancillary costs remain reasonable, especially compared to some European markets. They can be summarized as follows:
| Cost Item | Indicative Range |
|---|---|
| Registration fees | 0.1% to 0.5% of price |
| Notary fees | 0.2% to 1% of price |
| Lawyer (foreign investor) | $1,000 to $3,000 |
| Real estate agency | 2% to 5% (often seller’s responsibility) |
| Valuation appraisal | $150 to $300 |
| Technical passport / diagnostics | $100 to $200 |
| Sworn translations | $200 to $500 |
| Currency exchange cost (bank spread) | 1% to 3% |
In total, acquisition costs (excluding financing) hover around 3% to 7% of the property price. Including future resale costs, the complete “round trip” is estimated between 2.2% and 7% of the transaction amount.
Financing your purchase: lots of cash, little credit
Another major difference with Western markets: the role of mortgage credit for foreigners.
Kazakh banks very rarely lend to non-residents. When they do, they generally require:
– a down payment of 50% to 70% of the price;
– an interest rate in tenge typically between 15% and 20%;
– terms of 15 to 20 years with an effective annual rate that can climb to between 12% and 23%, once all fees are included.
Due to local currency volatility and the perceived risk level, local credit conditions are not advantageous. Consequently, almost all expatriates investing in Kazakh real estate do so in cash, using either personal savings or a loan obtained in their home country, where rates are generally more favorable.
For an expatriate already established locally, things are a bit different: certain public programs (like 7-20-25 or Orda Aimaq via Otbasy Bank) allow access to loans on more favorable terms, but these schemes primarily target residents and local households.
Developers also play a pseudo-banker role, offering staggered payment plans over one to three years, in exchange for a substantial initial payment (30% to 50% of the price) and a form of seller credit for the balance. This can be an interesting intermediate solution, provided the developer and project solidity are thoroughly audited.
Where to invest: overview of major cities and yields
The quality of a real estate investment depends first on location. In Kazakhstan, four urban hubs concentrate most expatriate interest: Almaty, Astana, Shymkent, and the oil city of Atyrau.
Almaty: economic capital, attractive yields
Almaty is the former capital, the most populous city, and the main economic and financial center of the country. Nestled at the foot of the mountains, it hosts the headquarters of numerous companies, banks, shopping centers, universities, and cultural infrastructure.
Prices per square meter are the highest in the country, especially in premium neighborhoods like Esentai, Samal, Medeu, Almaly, or Bostandyk.
| Segment in Almaty | Average Price (KZT/m²) | Approximation in euros/m² |
|---|---|---|
| Central / prime neighborhoods | 700,000 to 1,200,000 | 1,400 to 2,400 |
| Premium luxury segment | equiv. $2,800 to $3,500 | ~2,600 to 3,300 |
Rental yields are very competitive for a major urban center:
| Property type in Almaty | Estimated gross rental yield |
|---|---|
| Premium residential | 5% to 7% |
| Business class | 7% to 9% |
| Comfort / middle class | 8% to 10% |
| Renovated Soviet apartments | 10% to 12% |
On average, gross yields in the city hover around 9.5% to 10%, with a possible bonus for short-term rentals (7% to 9% per year on platforms like Airbnb).
Capital gain prospects are also solid: in nice neighborhoods, an annual increase of 6% to 8% is considered realistic in the medium term. The trade-off is a non-negligible seismic risk. Investing in Almaty requires scrupulously checking compliance with seismic standards and construction quality.
Astana: political capital, record rental yield
Astana (often still called Nur-Sultan in some documents) has been the political and administrative capital since the late 1990s. Built at a forced pace in the middle of the steppes, it boasts futuristic architecture and highly planned urbanism.
The population has more than tripled in twenty years, from 300,000 to over one million inhabitants.
Average prices are slightly below Almaty:
| City | Average Price (KZT/m²) | Estimation in euros/m² |
|---|---|---|
| Astana | 650,000 to 1,100,000 | 1,300 to 2,200 |
Gross yields, however, are often higher than in Almaty. In the apartment market, one commonly observes around 12% gross yield, regardless of typology:
| Apartment type in Astana | Average gross rental yield |
|---|---|
| Studio | ~12.2% |
| 1 bedroom | ~12.1% |
| 2 bedrooms | ~12.0% |
| 3 bedrooms | ~12.2% |
In practice, these figures correspond to high rents relative to local incomes, and assume good occupancy. In the standard long-term segment, expatriates can rather bank on 5% to 6.5% gross, more (6.5% to 8%) for carefully managed short-term rentals.
Appreciation prospects in Astana are estimated between 5% and 7% per year in developing areas. However, the market is exposed to political and budgetary hazards: any slowdown in public spending can affect demand.
Shymkent: third city, catch-up market
Shymkent, in the south of the country, is the third city of Kazakhstan. Its young population and rapid growth make it a market to watch for investors seeking more modest tickets.
Average prices there remain significantly lower than in the two major capitals:
| City | Average Price (KZT/m²) | Estimation in euros/m² |
|---|---|---|
| Shymkent | 400,000 to 650,000 | 800 to 1,300 |
Gross yields hover around 5.5% to 7% in classic rentals, with peaks of 7%–9% in some well-located segments. For short-term rentals, expected returns range from 6.5% to 8%.
Valuation prospects seem higher than in Astana, with projections between 6% and 9% per year. The trade-off: lower liquidity and a more local market, thus harder to grasp for an expatriate alone without a local partner.
Atyrau: oil hub, high but very cyclical rents
Located on the Caspian Sea, Atyrau is one of the nerve centers of the Kazakhstani oil industry. Many international companies have logistical bases and expatriate employees there, which translates into high rents for good products.
| City | Average Price (KZT/m²) | Estimation in euros/m² |
|---|---|---|
| Atyrau | 600,000 to 950,000 | 1,200 to 1,900 |
Estimated gross yields for a well-located apartment range between 8% and 11%, at the high end of the national range. But this market is strongly correlated to oil prices and major companies’ decisions: when investment contracts or expatriates leave, rents can drop sharply.
For an expatriate already working in the oil sector and familiar with the city, Atyrau can be an excellent bet provided one accepts these cycles and anticipates vacancy periods.
How much it really yields: from gross to net
Gross yield tables can be dazzling: 8%, 10%, sometimes 12% or more, it seems very attractive compared to many European markets. However, these figures must be translated into net yield for a realistic picture.
A widely verified rule of thumb in Kazakhstan is the following: Climate variations directly influence agricultural yields.
– a gross yield of 7% to 10% translates, once costs are deducted, into a net yield rather between 4.5% and 6%.
The main items that erode profitability are:
Annual condo fees for an apartment can reach up to $2,000, depending on the building’s size and class.
For an expatriate living far from Kazakhstan and entrusting everything to service providers, it’s often wise to be cautious and aim for the lower end of the net yield range (around 4.5%–5%), unless you find a perfectly reliable, seasoned property manager.
Taxation: what an expatriate investor pays
The Kazakh tax system is rather simple on paper, but it evolves rapidly. From an expatriate property owner’s perspective, several key taxes must be noted.
Rental income
For an individual, rents are taxed at a flat rate of 10%. If you hold the property via a company (LLP or other), corporate income tax rules apply, with a standard rate of 20%, moderated by deductible expenses.
Participants in the AIFC enjoy a complete exemption from income and corporate tax for eligible activities until 2066. However, this advantageous tax regime applies mainly to structured setups like funds, REITs, and holdings, not to an individual expatriate buying an apartment for personal use.
Real estate capital gains
Capital gains are taxed at 10% for residents and 15% for non-residents. Some provisions allow for exemptions after a minimum holding period (e.g., beyond five years), but these rules should be checked at the time of resale, as the framework has already been amended several times.
Local taxation and VAT
The property tax is relatively low (0.1% to 0.5% of the property’s value). Registration fees are also modest (0.1% to 0.5% of the price).
VAT, currently at 12%, is scheduled to increase to 16% under the new Tax Code. It does not directly apply to the purchase of a home by an individual, but can impact development projects carried out via a company, as well as the acquisition of certain assets like shops, offices, or warehouses.
Finally, if you become a tax resident in Kazakhstan, you will be taxable on your worldwide income and will, in time, have to declare all your assets as part of a universal asset declaration system being implemented.
Residence, visas, and the (limited) link with real estate
Unlike some countries that have built a “golden passport” program directly tied to purchasing real estate, Kazakhstan does not grant automatic residence or citizenship in exchange for buying an apartment.
For expatriates, several stay regimes coexist:
– visa exemption for citizens of 54 countries (including France) for short stays (up to 30 days per visit, within a limit of 90 days in 180);
– work visas obtained with the support of a local employer;
– a B8 visa for those applying for a residence permit, a procedure that can take two to three months.
For investors, three schemes stand out:
Kazakhstan offers several types of long-term visas for foreign investors, each with its own conditions and benefits.
Valid for 3 years and renewable, this visa is linked to an investment of at least $150,000 in priority sectors of the country. It can be a first step towards obtaining permanent residence.
Launched in 2025, this 10-year visa is conditional on an investment of at least $300,000 in the capital of a Kazakh company or in certain local financial securities.
Valid for up to five years, this visa is intended for persons directly involved in a business registered within the Astana International Financial Centre (AIFC).
In all cases, purchasing real estate, even a significant amount, is not enough to automatically trigger a right of residence. It can, however, weigh favorably in a business or investor visa application, by showing local economic anchoring.
A rich playing field, but reserved for active investors
At this stage, the portrait of Kazakh real estate for an expatriate is nuanced.
On the strengths side:
– prices per m² still well below those of many Western metropolises, even in central neighborhoods;
– high gross yields, often between 7% and 10%, sometimes more;
– solid capital gain prospects in major cities (5% to 9% per year depending on neighborhoods);
– moderate real estate taxation, whether on rental income (10%), capital gains (10%–15%), or property tax (0.1%–0.5%);
– a clear legal framework for building ownership, linked to a rather efficient registration system;
– a sophisticated financial ecosystem around the AIFC, with its REITs, tax advantages, and common law jurisdiction.
On the risks and constraints side:
Real estate investment in Kazakhstan presents several specific challenges: prohibition of direct land ownership for foreigners, volatility of the tenge linked to oil and the Russian ruble, changing and sometimes unfavorable tax and land regulations, uneven construction quality and seismic risk in Almaty, low market liquidity prolonging resales, and administrative heaviness often requiring physical presence and handling documents in local languages.
For all these reasons, Kazakhstan is not a market for an ultra-passive investor. It is better suited for:
The Turkish real estate market is particularly suitable for three types of investors: expatriates already residing locally who wish to convert part of their rent into investment; experienced investors capable of assembling a reliable local team (lawyer, accountant, property manager); and profiles seeking geographic diversification with a more aggressive return/risk strategy.
For an expatriate who accepts these rules of the game, buying a well-located small apartment in Almaty or Astana and renting it long-term can constitute an interesting portfolio complement, offering an attractive real yield and exposure to a growing economy. But it requires preparation, time, and extreme rigor in choosing partners and projects.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
