Published on and written by Cyril Jarnias
Moving to Kazakhstan for work or to invest in real estate also means entering a very specific tax system, which is relatively simple on some points (low income tax rate, no wealth tax) and much more technical on others (universal declarations, foreign tax credits, interaction with double taxation treaties). For an expatriate, a good understanding of how their income and real estate assets are taxed can make the difference between a smooth transition and a series of unpleasant surprises.
This article details the tax system applicable to foreign individuals in Kazakhstan, focusing on two main aspects: income tax and the annual property tax. The information presented is based on current Kazakh tax legislation, adopted reforms, and the practices of major international tax firms.
Understanding your status: tax resident or non-resident
Before even discussing tax rates, every expatriate must clarify a key question: am I considered a Kazakh tax resident or a non-resident? This distinction determines both the scope of taxable income and filing obligations.
In Kazakhstan, the basic rule is based on physical presence duration. Any person who stays at least 183 days during any continuous 12-month period ending in the tax year is generally a tax resident. Arrival and departure days are counted as full days. Therefore, there is no separate “tolerance threshold”: as soon as the total exceeds this 183-day threshold, you switch to the resident side.
Kazakh legislation defines tax residency by the concept of “center of vital interests.” Even without staying 183 days, a person may be considered a resident if they meet three conditions simultaneously: hold Kazakh citizenship or a permanent residence permit, have a spouse or close relatives living in the territory, and have housing permanently available for themselves or their family. It is the reality of private and family life that then takes precedence over mere physical presence.
Conversely, one who meets neither the duration of stay condition nor the center of vital interests condition is treated as a non-resident and will only be taxed on their Kazakhstan-sourced income. An important peculiarity is that this qualification can be altered by a double taxation treaty: if a tax treaty gives residence priority to another state and the individual provides the corresponding certificate of residence, Kazakhstan must comply.
For expatriates on assignment, days spent in Kazakhstan before the official start of the posting are included in the calculation of the 183-day period determining tax residency. This can accelerate access to this status. Furthermore, in case of departure and then return to the country, days already present in the territory during the preceding 12 months are also taken into account in this calculation.
Tax authorities also have direct access to immigration service data and can verify entry and exit dates using passport stamps. The argument of poor day counting is therefore difficult to uphold.
Tax base: worldwide income or Kazakhstan-sourced income
Once the status is determined, the taxable base becomes much clearer. A tax resident is taxed on all of their income, wherever generated in the world. Salary received from a foreign employer for work performed outside Kazakhstan, dividends from foreign stocks, capital gain on real estate located in another country: all must, in principle, be declared and are subject to Kazakh tax, subject to a foreign tax credit when another state has already taxed that same income.
For a non-resident, only Kazakhstan-sourced income is taxable. This includes remuneration related to an activity performed in the territory (employment, services), rents from property located in Kazakhstan, as well as dividends and capital gains related to Kazakh entities. The determining criterion is the place where the activity is performed or the location of the asset, not the place of payment or the nationality of the payer.
This broad definition concerns, for example, expatriates sent by an international group who continue to be paid by the parent company, without a local contract. In practice, the tax administration applies the concept of “economic employer” inspired by the OECD model: if the Kazakh subsidiary bears the cost of the remuneration or actually benefits from the work, the activity is considered performed on its behalf and salaries are treated as Kazakhstan-sourced income.
Income tax: an attractive rate… and soon to be progressive
One of the most commented attractions of the Kazakh tax system lies in its flat income tax rate. For most taxpayers, residents and non-residents alike, employment income is taxed at 10%. This single rate applies to gross remuneration, after deducting mandatory contributions (pension, health insurance) and authorized deductions.
Concretely, the taxable base includes fixed salary, bonuses, cost-of-living allowances, housing allowances, airfare reimbursements, benefits in kind (provided housing, vehicle made available for private use, insurance paid by the employer), as well as taxes paid on behalf of the employee when the remuneration is “net of tax.” Stock options granted by the employer, contributions to private pension plans funded by the company, and other similar benefits also fall within the scope of taxable income.
Non-residents are subject to a 10% rate on employment income processed through a local payroll, with the Kazakh employer withholding tax at source. If income is received without going through a local employer and declared personally, the rate can be as high as 20% for certain types of income, in accordance with the strict regime for ‘off-payroll’ earnings.
For capital income, the treatment differs. A resident generally pays 10% on their interest and capital gains but benefits from a reduced rate of 5% on dividends from Kazakh sources. The non-resident, however, faces a rate of 15% on Kazakh dividends and interest and sees most of their other income (royalties, service fees, certain rights) taxed at 20% when not connected to a permanent establishment.
Towards a progressive tax from 2026
However, this single-rate architecture will not remain fixed. A new Tax Code has been adopted, with a general effective date of January 1, 2026. Among the flagship changes is the introduction of a progressive scale for personal income tax. The chosen principle is relatively simple: up to a certain threshold, equivalent to 8,500 Monthly Calculation Indices (MCI), the 10% rate is maintained. Beyond that, the excess portion will be taxed at 15%.
This is the tax ceiling of 8,500 MCI, approximately 33.4 million tenge, beyond which high-income expatriates in Kazakhstan face heavier taxation.
It is important to emphasize that this shift to a progressive scale will not automatically affect all expatriates. Many will remain below the threshold for the higher rate, including qualified experts or mid-level managers. On the other hand, highly paid executives or specialists will need to incorporate this new reality into their net/gross simulations.
Deductions, exemptions, and non-taxable income
Behind the apparent simplicity of the single rate, Kazakhstan offers a set of deductions and exemptions that can significantly lighten the tax bill for expatriates who become tax residents.
The core mechanism is the standard monthly deduction indexed to the MCI. For 2025, this deduction equals 14 MCI per month, i.e., 55,048 KZT, with an annual cap of 660,576 KZT. This amount reduces the taxable base. There is also a specific, higher deduction (over 800 MCI annually) for certain vulnerable categories, such as persons with disabilities, parents of disabled children, or adoptive parents.
Residents can deduct their mandatory contributions to the public pension fund and social health insurance, as well as their voluntary contributions to supplementary pension schemes. Certain cumulative insurance premiums taken out individually are also deductible. Justified medical expenses are deductible up to an annual MCI limit, and interest on housing loans from specialized banks benefits from favorable tax treatment.
Starting in 2025, taxpayers subject to the universal declaration system will also be able to deduct, in their annual return, certain education expenses, voluntary pension contributions, and broader medical expenses, opening up interesting planning margins for expatriate families settling long-term.
Several categories of income are expressly tax-exempt for residents: interest on bank deposits in Kazakh institutions, as well as gains and interest from Kazakh government securities or certain securities listed on local markets (KASE and Astana International Exchange) under conditions. Also exempt are family allowances, child support alimony, birth and funeral benefits (within certain limits), and real estate capital gains after a minimum holding period (more than one year for a residence or vehicle).
For an expatriate buying an apartment to live in or rent out, this rule of non-taxation of capital gains after one year of ownership is particularly noteworthy. It allows realizing a tax-free net capital gain on resale, which is not the case in many countries.
Social contributions, pension, and health insurance
Income tax is only part of the overall cost of labor. Even though Kazakhstan does not levy social charges as high as some European countries, the sum of the various contributions must be taken into account by expatriate employees and their employers.
For local or foreign employees holding a permanent residence permit, a mandatory 10% deduction is made from gross salary for pension. This contribution is paid to the unified pension fund and is capped at a multiple (up to 50 times) of the monthly minimum wage, thus limiting the impact for very high incomes. Nationals of Eurasian Economic Union countries (Russia, Belarus, Armenia, Kyrgyzstan) are also subject to this deduction when working in Kazakhstan.
Employers must also pay a “social tax” calculated on the payroll, with a rate of approximately 9.5%. This contribution is not deducted from the employee’s salary; it is entirely borne by the employer. In addition, there are social insurance contributions paid to a dedicated fund, mandatory employer contributions to a supplementary pension scheme for employees born after 1975 (1.5% of salary in 2024, with scheduled increases to 5% by 2028), and contributions to mandatory health insurance.
The medical component consists of an employer contribution (3% of gross salary since 2022) and an employee contribution (2% since 2021). The calculation base is capped at ten times the monthly minimum wage. These contributions apply to citizens of the Eurasian Union working without a residence permit but generally not to expatriates without citizenship or permanent residence, except for exceptions.
For an expatriate who remains under contract with a foreign employer and does not go through a local contract, these deductions are often absent, but income tax remains due as soon as the activity is performed in the territory. This is one of the reasons why many international groups prefer to set up an “umbrella” payroll via a Kazakh subsidiary to properly manage withholdings and contributions.
Declarations, payment, and penalties: a highly regulated system
For income tax, Kazakhstan combines a withholding at source system for salaries with an annual filing obligation for income not directly taxed, particularly rents, foreign dividends, capital gains on securities, and independent professional income.
For the salary portion, the employer acts as a tax agent. They calculate the tax due, taking into account applicable deductions, withhold it when paying the salary, and then remit it to the Treasury no later than the 25th of the month following payment. They also file detailed quarterly statements detailing amounts paid and withheld.
Residents receiving income not subject to withholding at source must declare it themselves. The system is evolving: the annual return (form 240.00) used to be filed by March 31, with payment by April 10. Starting in 2024 for 2024 income, individuals subject to the ‘universal declaration’ must use form 270.00 and file it by September 15 of the following year, then pay any remaining tax due by September 25.
This universal system works in two stages. First, an “initial declaration” (form 250.00) lists the taxpayer’s assets and liabilities when they join the system: real estate, bank accounts, securities, receivables, etc. Then, an annual return reports income received, assets and holdings, including those abroad. Kazakh citizens, permanent residents, but also expatriates with such status are concerned, particularly if they hold foreign bank accounts above a certain threshold (e.g., more than 2,000 MCI in balance) or real estate assets outside the territory.
Non-residents who have received Kazakhstan-sourced income not taxed at source must file a tax return, according to the deadlines in March and April. Upon leaving the country, they can file a return covering their period of presence, settle their tax balance, and then request removal from the registers.
In case of delay or omission, the penalty regime is far from symbolic. Late payment interest calculated at 1.25 times the National Bank’s base rate per day of delay is added to the amounts due. Concealment of income can lead to fines of up to 200% of the evaded tax, or even 300% in case of repeat offense. Failure to declare a foreign bank account or real estate asset abroad can also result in significant fines expressed in MCI. In extreme cases of persistent non-payment, restrictive measures such as a temporary exit ban from the territory may be considered.
Rental income and real estate capital gains: a major issue for expatriate investors
Many expatriates take advantage of their presence in Kazakhstan to buy an apartment, either to live in or to rent out. In this regard, two tax dimensions must be examined separately: taxation of rents and that of capital gains upon resale, not forgetting the annual property tax discussed later.
Taxation of rents
Rents received from property located in Kazakhstan are considered Kazakhstan-sourced income, regardless of the owner’s residence status. A non-resident is subject to a 10% rate on this income. If the tenant is a tax withholding agent (e.g., a Kazakh company or sole proprietorship), they must withhold and remit these 10% directly to the tax authorities. If the tenant is an individual who is not a withholding agent, the landlord must file an annual return and pay the tax themselves.
Property owners who register as individual entrepreneurs can benefit from simplified regimes with flat rates (e.g., 1% with a “patent” or 3% under a simplified declaration, depending on thresholds) but must pay social contributions. Since late 2023, the unified payment for sole proprietors has been abolished, forcing private landlords to choose between entrepreneur status or an annual return under the standard regime.
In calculating taxable income, maintenance and repair costs, or reimbursements of such costs by the tenant, can be deducted from gross rents. This reduces the base subject to the 10% rate.
Real estate capital gains
The treatment of real estate capital gains is another favorable point. For residential property and certain vehicles, the rule is simple: if the property has been owned and registered in the cadastre for more than one year, the gain realized upon resale is not taxable. This exemption applies regardless of the seller’s residence status.
Capital gains tax rate for non-residents in case of ownership for less than one year.
For capital gains on securities (stocks, shares), the regime is more nuanced. Residents must self-assess a tax of 10% on gains from foreign securities or participations in companies whose value derives mainly from Kazakh assets. Certain transactions are nevertheless exempt, for example the sale of Kazakh public securities, agency bonds, shares of local open-ended funds, or shares of resident companies held for more than three years, provided they do not derive most of their value from activities in the extractive sectors.
Property tax in Kazakhstan: progressive scale for individuals
Independently of income tax, owning real estate in Kazakhstan triggers the payment of an annual property tax. For individuals, this tax applies to apartments, houses, garages, secondary residences, and other structures, as well as co-ownership shares. It is calculated based on the cadastral value, as established by a public agency on January 1 of each year.
The scale applicable to individuals is progressive. The combined principle is that of value brackets with increasing rates, sometimes with a fixed amount to which a percentage on the value exceeding the bracket threshold is added. The table below illustrates a typical grid in force for 2024/2025.
| Property Cadastral Value (KZT) | Annual Tax Calculation for an Individual |
|---|---|
| Up to 2,000,000 | 0.05% of the value |
| 2,000,001 to 4,000,000 | 1,000 KZT + 0.08% of the portion above 2,000,000 |
| 4,000,001 to 6,000,000 | 2,600 KZT + 0.10% of the portion above 4,000,000 |
| 6,000,001 to 8,000,000 | 4,600 KZT + 0.15% of the portion above 6,000,000 |
| 8,000,001 to 10,000,000 | 7,600 KZT + 0.20% of the portion above 8,000,000 |
| 10,000,001 to 12,000,000 | 11,600 KZT + 0.25% of the portion above 10,000,000 |
| 12,000,001 to 14,000,000 | 16,600 KZT + 0.30% of the portion above 12,000,000 |
| 14,000,001 to 16,000,000 | 22,600 KZT + 0.35% of the portion above 14,000,000 |
| 16,000,001 to 18,000,000 | 29,600 KZT + 0.40% of the portion above 16,000,000 |
| 18,000,001 to 20,000,000 | 37,600 KZT + 0.45% of the portion above 18,000,000 |
| 20,000,001 to 75,000,000 | 46,600 KZT + 0.50% of the portion above 20,000,000 |
| 75,000,001 to 100,000,000 | 321,600 KZT + 0.60% of the portion above 75,000,000 |
| 100,000,001 to 150,000,000 | 471,600 KZT + 0.65% of the portion above 100,000,000 |
| 150,000,001 to 350,000,000 | 796,600 KZT + 0.70% of the portion above 150,000,000 |
| 350,000,001 to 450,000,000 | 2,196,600 KZT + 0.75% of the portion above 350,000,000 |
| Over 450,000,000 | 2,496,600 KZT + 2% of the value exceeding 450,000,000 |
To give a concrete order of magnitude, a real calculation example shows, for a small older apartment of about 34 m² located in a popular district of Almaty, a cadastral value around 1.17 million KZT. Applied at the 0.05% rate, this leads to an annual tax of less than 1,000 KZT, a very modest sum in practice.
Calculation methods, notification, and payment
The calculation of property tax for individuals is not the taxpayer’s responsibility. Tax authorities establish the amount due themselves, based on cadastral data and current scales. This calculation must be finalized before July 1 of the year following the reference year, and a notification is sent to the owner within the ten business days following the establishment of the tax roll.
The tax notice can be received through several different communication channels.
Traditional sending by physical letter to the taxpayer’s address.
Notice sent by email or via a government online portal.
Concise and direct notification on the taxpayer’s mobile phone.
Receipt and viewing via the dedicated government application.
Viewing via the applications of widely used local banks.
The tax amount may appear directly on utility bills (water, electricity…).
Payment must be made by October 1 of the year following the taxable period (e.g., 2024 tax to be paid by October 1, 2025). It can be made via commercial banks, post offices, online payment services, or official portals. The tax is allocated to a specific budget code, which distinguishes it from other taxes.
In case of delay, late payment interest accrues and administrative penalties may be applied. In extreme situations of prolonged non-payment, the administration may impose additional constraints.
Property tax for companies and expatriate investors using a structure
For legal entities, including real estate companies used by some expatriates to structure their investments, the regime is different. The standard rate is 1.5% applied to the average net book value of real estate held during the period. Small businesses under a simplified regime may benefit from a reduced rate of about 0.5%.
The tax is then paid quarterly, with deadlines spread throughout the year (generally in February, May, August, and November). Unlike individuals, companies must calculate and declare the tax themselves, without prior notification from the administration.
Real estate taxation is not limited to the property tax on buildings. Expatriates owning a separate plot of land must also pay a land tax specific to land. This is calculated mainly based on area and land type, but also on location and soil quality, on a flat rate per hectare. A declaration is generally required for businesses, while for many individuals, the administration calculates the tax itself, which must be paid by October 31 of the year following the taxable period.
Owning a vehicle registered in Kazakhstan is subject to an annual transport tax. Its amount varies according to the type of vehicle, its power, and other technical characteristics. Payment follows a specific schedule, with a deadline generally set for April 1 of the year following the year of vehicle ownership.
One point that clearly differentiates Kazakhstan</strong from parts of Western Europe is the absence of a wealth tax or net asset tax. No specific levy is made on the overall value of assets held by a person (financial, real estate, etc.), apart from income taxes and annual taxes on real estate and land.
International double taxation: role of tax treaties and foreign tax credit
For an expatriate, the main tax risk is not so much the level of local rates but the superimposition of two systems of taxation on the same income. Kazakhstan has concluded over fifty treaties aimed at avoiding double taxation, with countries as varied as France, Germany, the United Kingdom, the United States, China, Japan, Russia, the United Arab Emirates, and European partners like Ireland, Belgium, or the Netherlands.
Bilateral tax treaties, often supplemented by the Multilateral Convention (MLI) against base erosion, determine which state has the right to tax different categories of income (salaries, dividends, interest, royalties, capital gains, pensions, etc.). They also establish conditions for applying reduced withholding tax rates on dividends or interest paid to non-residents.
For an expatriate who is a tax resident in Kazakhstan and receives income in another country, the key mechanism is the foreign tax credit. This credit allows offsetting tax paid abroad against Kazakh tax due on the same income, up to the limit of the latter. In other words, if the source country taxes the income heavily, Kazakh tax will be entirely neutralized; if the foreign rate is lower than the Kazakh rate, the taxpayer will pay the difference in Kazakhstan.
To benefit from the tax credit on foreign income, you must attach to your annual return an official document from the foreign tax authority, certifying the amount of income and tax paid. This document must generally be legalized (or apostilled), then translated and certified. The credit calculation is done country by country: it is not possible to offset taxes paid in one country with those of another.
For expatriates who remain fiscally attached to their country of origin under a treaty, Kazakhstan may, in some cases, limit or waive taxation of certain income. However, they must provide a certificate of tax residence from the partner country on time to activate these treaty benefits.
Special case of U.S. citizens and other citizenship-based taxation countries
A point often unknown to expatriates is that some countries, notably the United States, tax their citizens based on citizenship, not just residence. A U.S. citizen living and working in Kazakhstan will therefore, in addition to complying with local obligations, continue to file a tax return each year with the Internal Revenue Service (IRS) and declare their worldwide income.
Specific tax provisions (foreign earned income exclusion, foreign tax credit, etc.) exist to mitigate double taxation, but their application is conditional on filing a correct return and using the appropriate forms (2555, 1116). Furthermore, exceeding certain thresholds triggers reporting obligations for foreign financial accounts (FBAR/FinCEN 114, Form 8938).
This dual constraint can lead Russians, Americans, Britons, Canadians, or nationals of other worldwide taxation countries to cumulate two layers of rules: those of Kazakhstan and those of their country of nationality, even when double taxation treaties mitigate the pure tax burden.
Summary table of key rates and thresholds useful for expatriates
To provide a synthetic view of the most important parameters, the following table summarizes the main rates and ceilings mentioned, as they directly concern expatriates in Kazakhstan.
| Key Elements | Tax Residents | Tax Non-Residents |
|---|---|---|
| Tax base | Worldwide income | Kazakhstan-sourced income only |
| Tax on salary (before 2026) | 10% | 10% (via local payroll), 20% in some cases |
| Progressive scale (from 2026) | 10% up to 8,500 MCI, 15% beyond | To be specified, but trend towards 15% on high income |
| Kazakh dividends | 5% | 15% (20% if preferential tax jurisdiction) |
| Real estate capital gains (< 1 year) | 10% | 15% |
| Real estate capital gains (> 1 year) | Exempt | Exempt |
| Rental income | 10% (possibility of professional regime) | 10% |
| Standard deduction (2025) | 14 MCI/month (55,048 KZT) | Accessible if resident under local definition |
| Mandatory pension contribution | 10% of gross (capped) | Not applicable without permanent residence |
| Property tax (individuals) | 0.05% to 2% depending on cadastral value | Same |
| Property tax deadline | October 1 of the following year | Same |
Why tax planning is essential for expatriates in Kazakhstan
Overall, taxation on income and property in Kazakhstan remains relatively competitive compared to many developed economies. A base rate of 10%, real estate capital gains exempt after one year, no wealth tax, and capped social charges are undeniable advantages. However, this flattering image should not hide the growing complexity linked to filing obligations (universal declaration, reporting of foreign assets) and interactions with international tax treaties.
For expatriates with financial assets, companies, or real estate in several countries, or receiving various types of income (foreign salaries, dividends, rents, capital gains), procedural errors can lead to costly adjustments, significant fines, and avoidable double taxation.
The central question is no longer just “how much tax will I pay?”, but “how should I structure my income and investments to benefit from Kazakh advantages while respecting the rules of my country of origin and avoiding overlaps?” Whether choosing between a local contract and secondment, deciding to buy property in one’s own name or via a company, calibrating a savings plan, or managing foreign holdings, professional advice often proves valuable.
The Kazakh regulatory framework, including the new Tax Code, the universal declaration, and VAT or dividend tax rates abroad, is evolving rapidly. Settled expatriates must regularly review their situation to adjust their strategies accordingly.
In this context, the Kazakh tax system offers real planning opportunities but requires increased vigilance and a good understanding of residence mechanisms, tax bases, double taxation treaties, and local property taxes. For an informed and well-advised expatriate, Kazakhstan can remain an attractive destination, including from a tax perspective, provided they anticipate rather than endure.
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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.
