Published on and written by Cyril Jarnias
At first glance, Belarus is not necessarily the country that spontaneously comes to mind for international real estate investors. However, behind a still relatively unknown image lies a highly crafted tax environment, where real estate – taken in the broad sense, from rental housing to factories built in special economic zones – benefits from numerous incentives. The legal framework for investment, from double taxation treaties to the investment law, has been designed to attract capital, particularly in industry, logistics, and regional development projects.
Despite a complex international context, Belarus offers various advantageous tax regimes for real estate investment. The challenge for an investor (individual or corporate) is to select the appropriate regime, depending on the investment location and the chosen legal form (individual, resident company, project in a special zone, or investment agreement).
A Legal Framework Designed to Secure Real Estate Investment
The legal foundation for taxation in Belarus is the Tax Code, structured into a general part and a special part, supplemented by the “On Investments” law adopted in 2013 and fully revised in 2024. The latter guarantees foreign investors treatment at least as favorable as that afforded to local players and defines investment broadly, including real estate, shares, money, and receivables.
An investor undertaking a real estate project, company creation, or joint venture can conclude a specific agreement with the Belarusian state. Once registered, this contract offers tax exemptions (profit tax, import VAT on equipment, property tax, land lease fees) and a tax stability clause that can last up to five years. It also provides for state reimbursement of certain project-related infrastructure costs, a limitation on contractual penalties, and strict regulation of the risks of nationalization or requisition, which are always accompanied by an obligation for compensation.
Furthermore, Belarus is bound by more than sixty double taxation treaties and as many bilateral agreements for the promotion and protection of investments. Even though some treaties are suspended or denounced with European countries, the network remains dense with Asia, the Middle East, and the post-Soviet space, which often allows for partial neutralization of the double taxation of property income or capital gains.
Basic Real Estate Taxation: What to Know Before Looking for Niches
To understand the scope of preferential regimes, one must first set the scene of the standard rules that apply to real estate, rental income, and capital gains.
For resident individuals, the flat rate for personal income tax is 13% for most types of income, including rental income and real estate capital gains. Non-residents are taxed only on their Belarus-sourced income, with standard rates of 15% to 20% on rental income depending on the case. The system does not have a separate capital gains tax: gains from the sale of real estate are treated as ordinary income, though with several important exemptions, notably for a primary residence held for at least five years.
The standard corporate profit tax rate in Belarus is 18%.
From a wealth tax perspective, Belarus applies an annual property tax, a separate land tax, but no wealth tax, no specific transfer tax on sales between individuals, and no standalone inheritance tax. The ongoing taxation of built-up property thus remains relatively simple to grasp, albeit at the cost of sometimes significant rates for companies.
Property Tax: A Recurring but Adjustable Cost
For individuals, the tax on residential real estate property is set at 0.1% of the reference value, calculated per square meter. For example, the reference value per square meter for an apartment in Minsk was 968 BYN in 2024. The tax formula for an apartment owned by an individual is therefore simple: reference cost per square meter multiplied by the area, then applied to 0.1%. In practice, the annual bill often ranges between 60 and 120 euros for a home, which remains modest on a European scale.
For companies, the annual property tax is calculated on the cadastral value. The general rate is 1% for buildings, with differentiated rates (0.1% to 0.8%) depending on the nature and fiscal age of the property. New constructions benefit from a progressive tariff, starting at 0.2% in the second year and reaching 0.8% in the fifth year. Construction projects with extended delays face an increased rate of 2%. Local councils have the ability to adjust these rates within certain limits, allowing municipalities to lighten the tax burden to attract projects.
However, there are several targeted exemptions. Research buildings and science parks, for example, are exempt, as are properties located in special economic zones (provided they are used for eligible activities). For individuals, an exemption for a single residence was abolished in 2022, but remains for certain protected groups (pensioners, disabled persons, minors, conscripts).
Land Tax and Land Lease
The land tax applies to urban and rural land, with the base generally consisting of the cadastral value, or the area for agricultural land. Rates depend on the type of use (industrial, residential, agricultural) and location, with local authorities again able to apply increase or reduction coefficients.
In Thailand, where direct land ownership is restricted for foreigners, real estate investors can use long-term leases, which can go up to 99 years on public land. This mechanism is particularly common in special economic zones or the “Bremino-Orsha” zone. A major advantage is the possibility of having the land tax and lease rent reduced to zero for long periods, which significantly improves the profitability of industrial or logistics real estate projects.
Real Estate Ownership for Foreigners: Possibilities and Limits
Belarusian law allows foreigners to purchase apartments, houses, and commercial buildings. On the other hand, direct access to land ownership remains regulated. A reform of the Land Code, which came into effect in early 2023, relaxed the situation by allowing non-nationals to obtain land in specific cases: inheritance, acquisition of a house with its land, or joint ownership with a Belarusian spouse. Outside these scenarios and special regimes, foreigners most often use long-term leases.
In special economic zones like the “Great Stone” industrial park, structures facilitate long-term access to land for large-scale projects.
Ownership or long-term provision of land is facilitated for foreign investors in dedicated zones.
These structures offer the necessary land security and tax predictability for several decades.
They are crucial for large projects: logistics parks, distribution centers, or production complexes.
Purchasing real estate in Belarus does not automatically entitle one to a residence permit, but it can support an application for temporary residence, especially if combined with economic activity (company formation, employment) or a recognized investment project. The thresholds commonly cited for projects likely to influence the processing of a residence application are around 135,000 to 150,000 euros invested in a qualified economic or real estate project.
Rental Income, Capital Gains, and Individual Taxation
For the individual investor looking to buy a home in Minsk, Brest, or Grodno for rental, the tax situation is relatively clear. Rental income constitutes taxable income at a flat rate of 13% for a tax resident, with deductible expenses within certain limits. For a non-resident, rental income is taxed at flat rates generally between 15% and 20%, with details depending on status and double taxation treaties.
Capital gains receive relatively favorable treatment in some cases. The gain from the sale of a primary residence (house, apartment, building, land, garage, parking space) is not taxable if the property was held for at least five years. Similarly, the sale of a vehicle is exempt if it is the first sale within the year. Subsequent sales are taxed, as is the second sale of real estate of the same type within a five-year period.
Capital gains on securities (shares/equity) are taxed at 18%, with possible exemptions for long-term holdings, although the regime has been tightened. For real estate, taxation depends on the holding period and use (personal or business). Acquisition, renovation, and improvement costs are deductible to reduce the gain. In some cases, taxation can be spread out if the sale proceeds are reinvested in assets depreciable over three years.
Overview of Basic Taxation for an Individual Investor
| Element | Main Rule for a Resident Individual |
|---|---|
| Tax Rate on Rental Income | 13% |
| Tax Rate on Capital Gains | 13%, except exemptions (primary residence > 5 years, certain first sales) |
| Property Tax | 0.1% of reference value (per m² × area) |
| Wealth Tax | None |
| Specific Inheritance Duties | No standalone inheritance tax |
| Real Estate Transfer Tax | No dedicated transfer tax between individuals |
In practice, the combination of a moderate tax rate on rental income, low property tax for individuals, and conditional exemptions on capital gains makes the long-term holding of a residential property a relatively tax-neutral investment, especially if the investor adopts a holding strategy of several years.
Special Regimes: The Real Leverage for Real Estate Tax Benefits
Where Belarus truly stands out is through the multiplication of targeted special regimes: free economic zones, industrial parks, small town and rural development programs, priority regions like the southeast of Mogilev oblast, the “Bremino-Orsha” zone, technology parks, etc. All these mechanisms combine, to varying degrees, exemptions from profit tax related to production activities, reductions in property tax, land tax, and even import VAT on equipment.
For a real estate investor, these regimes transform a simple buy-to-let project into a productive investment backed by real estate assets, or into the development of a logistics or industrial platform.
Free Economic Zones: Zero Tax on Profits from Productive Real Estate
Belarus has six free economic zones (FEZ): Brest, Vitebsk, Gomel-Raton, Grodnoinvest, Minsk, and Mogilev. They are located in major regional centers, with a more favorable legal and tax regime than the general framework. More than 280 companies operate there, employing over 60,000 people.
Minimum required investment, in euros, for a company to become a resident of a Free Economic Zone (FEZ).
The central advantage is the full exemption from profit tax on income from the sale of self-produced goods or services intended for export or sold to other FEZ residents. This 0% rate applies for long periods (5 to 10 years, according to the regulations), then gives way to a reduced rate, capped at 12%. For real estate, this means that a factory, warehouse, or service platform built in an FEZ and used for targeted activities can generate virtually tax-free profits for several years.
Property taxation is reduced in the Free Economic Zone (FEZ): property tax at 0% for assets acquired within 3 years after registration or used for eligible activities, and land tax/lease fees reduced to 0% during the construction period (up to 5 years). These benefits can be extended subject to export volumes or intra-FEZ sales. Note, assets leased to non-FEZ residents lose these benefits, encouraging investors to participate in the local productive ecosystem.
These zones also benefit from exemptions from VAT and customs duties on the import of raw materials and equipment placed under the customs-free zone regime, and on the export outside the Eurasian Economic Union of resulting finished products. This architecture is clearly designed to make turnkey construction of factories and logistics centers competitive.
Comparative Table: Real Estate Tax Burdens in an FEZ vs. General Regime
| Type of Charge | General Regime (Company) | FEZ Resident (Eligible Assets & Activities) |
|---|---|---|
| Profit Tax (Productive Activity) | 18% (up to 25% for large taxpayers) | 0% for a set period, then max 12% |
| Property Tax on Productive Assets | 1% (0.2–0.8% for recent constructions) | 0% for assets located in the FEZ and meeting criteria |
| Land Tax on Construction Land | Variable local rate | 0% during construction (up to 5 years), extension subject to conditions |
| Land Lease Fee | Market or administered rate | 0% during construction, then 0% subject to performance conditions |
| Import VAT on Equipment | 20% (standard rate) | 0% (customs-free zone regime) |
In summary, for a developer or investor combining real estate with industry or logistics, the FEZ offers a platform where the fiscal burden – land, building, equipment, and operating profits – is almost entirely neutralized, at the cost of investment and export commitments.
The “Great Stone” Industrial Park: An Extreme Case of Pro-Real Estate Taxation
The “Great Stone” industrial park, designed with China, is the most spectacular showcase of this strategy. Located near Minsk, it targets high-tech sectors, export, and international logistics.
Companies obtaining resident status there must invest at least 5 million dollars (threshold lowered to 500,000 dollars for R&D projects), in areas like electronics, pharmaceuticals, logistics, or e-commerce. In return, the tax regime on real estate and its income is extremely generous, with time horizons that far exceed what is found elsewhere in the country.
Profits from the sale of self-produced goods are fully exempt from tax for ten years from the first gross profit, then taxed at a reduced rate (typically 9%) until 2062. Property tax and land tax are also set at 0% until 2062, and VAT on sales is set to 0%. Furthermore, dividends can, in some cases, be exempt for five or ten years, with a parallel exemption from offshore levies on their transfer.
From a strictly real estate perspective, building a factory, digital center, or logistics platform in “Great Stone” is therefore akin to settling in a sort of almost perpetual tax bubble: no property tax, no land tax, no VAT on sales, almost non-existent profit tax, tax-free equipment imports. At the same time, authorities guarantee the stability of conditions for ten years, reduce administrative controls, and offer a one-stop shop for building permits, connections, and compliance, with the possibility of applying foreign technical standards.
This type of regime is, of course, aimed at heavy projects. But it illustrates how far Belarus is willing to go, on the tax front, to attract investments where productive real estate is at the heart of the setup.
Belarusian tax regime for investment
“Bremino-Orsha”: A Logistics Zone with a 20-Year Property Tax Exemption
Another zone of interest for investors focused on logistics real estate is the special economic zone “Bremino-Orsha”, created in 2019. It targets industry, wholesale trade, e-commerce, and logistics services, with a minimum investment similar to that of “Great Stone”.
Residents benefit from a full property tax exemption for 20 years after registration, a VAT exemption on construction and equipment, and a 0% VAT rate on sales for 15 years. Profit tax is 0% for 9 years on profits from self-production, and dividends are exempt for 5 years.
Access to 99-year land leases on negotiated terms, with the possibility of subleasing, opens the prospect for investors to deploy large logistics hubs or warehouse parks without fearing a future increase in the land or property bill. This is supplemented by guarantees of regime stability until 2028 and the neutralization of exchange rate differences in the calculation of taxable profit until 2033.
Development of Small Towns and Rural Areas: Subsidized Industrial and Social Real Estate
Beyond the major free zones, Belarus also uses tax tools to revitalize small towns (under 50,000 inhabitants) and rural areas. A 2012 presidential decree offers companies that establish there a full profit tax exemption for seven years on income from the sale of self-produced goods and services, as well as an exemption from property tax and land tax for the same period, for buildings and land used in these activities.
Between 2024 and 2028, companies benefit from a 50% reduction in profit tax after the exemption period, creating effective rates of 10% to 12.5%. This mechanism also includes exemptions from customs duties and VAT on the import of certain machinery. These measures make productive real estate investments (factories, workshops, warehouses) in small towns very competitive from a tax perspective, especially compared to Minsk.
One region receives even stronger treatment: the southeast of Mogilev oblast. Companies registering there before the end of 2025 benefit from a reduced personal income tax rate for employees of 10% for seven years, a lowered social contribution rate, exemptions from environmental compensation for the conversion of agricultural or forest land, and, crucially, direct subsidies covering up to 35% of investment costs. The state and the region also share the financing of the engineering and transport infrastructure necessary for agricultural or industrial real estate projects.
Investment Agreements, PPPs, and Concessions: Structures that Add Value to Real Estate Assets
The legal tools of the investment agreement, the public-private partnership (PPP) contract, and the concession contract also serve as indirect vectors of tax benefits for real estate. They authorize the construction, renovation, or operation of public real estate assets (roads, hospitals, social housing, sports infrastructure, tourist complexes) by private actors, under derogatory tax regimes.
An investment agreement offers targeted exemptions (profit tax, import VAT, land tax, lease fees) and a tax stabilization clause. A PPP, governed by a specific law, allows risk-sharing, guarantees the maintenance of contract terms, and authorizes the use of public assets by the private partner. Concessions, often linked to natural resources, can include ancillary infrastructure and grant similar benefits (land, customs exemptions, etc.).
For the real estate investor, these instruments mean that a student residence, hospital center, tourist complex, or transport terminal project can be structured not only as a rental-generating asset but also as a project eligible for contractual income guaranteed by the state or local authorities, under a protective tax umbrella.
Interaction with Double Taxation Treaties and Withholding Taxes
Real estate remuneration, whether rental income, capital gains, or dividends generated by a real estate company, is not solely determined by domestic taxation. For a foreign investor, the network of double taxation treaties still plays a decisive role.
Belarus has concluded more than 70 tax treaties with European, Asian, and Middle Eastern states.
The recent context has, however, complicated the landscape. A resolution of the Council of Ministers, effective in 2024, suspended the application of certain provisions related to dividends, interest, and capital gains for 27 countries considered “unfriendly”, including most EU member states, the United Kingdom, and the United States. For these countries, Belarus now applies its domestic rates, with a withholding tax of up to 25% on dividends paid to non-residents and increased rates (up to 15%) on gains from the sale of shares or real estate. In turn, some states (France, the UK, Baltic countries) have suspended or denounced the treaties, creating a risk of mirror taxation.
For investors coming from countries whose tax treaties with France are fully in force, substantial benefits may remain. This is particularly true when real estate is held via a company resident in a special zone. In that case, the company’s profits are tax-exempt and only distributions (dividends) are taxed, benefiting from a preferential rate or ceilings defined by the treaty.
Why Belarus Remains Tax-Attractive for Real Estate Despite the Risks
Belarus’s image obviously suffers from the geopolitical context and sanctions, which complicate cross-border payments and reduce access to international banking solutions. Some payment service providers have suspended their services, and the country does not participate in the automatic exchange of tax information (CRS). For a foreign investor, these factors are as important to consider as the level of taxation.
On the strictly tax front, however, the combination of the following elements makes Belarus a unique jurisdiction for real estate:
Real estate taxation for individuals is moderate (13% on rental income and capital gains, light property tax). There is no wealth tax, no standalone inheritance taxes, and no dedicated tax on sales between individuals. Very advantageous special regimes, which can go as low as 0% on profits and land taxes for periods of 7 to 20 years (or even until 2062 for the “Great Stone” park), are available. Projects can be structured via investment agreements or PPPs, including tax stability clauses, budgetary support, and infrastructure cost-sharing. A broad network of double taxation treaties with many non-Western countries helps limit the double taxation of real estate income.
For the investor limited to acquiring housing in Minsk or Brest for long-term rental, the added value comes mainly from the simplicity of the regime and decent rental yields (5% to 6.5% in Minsk, up to 9% for short-term rentals) rather than spectacular tax niches. For those willing to develop a factory, logistics park, or production complex in a special zone, taxation becomes a major leverage tool, capable of transforming average profitability into exceptional performance.
Conclusion: A Country of Niches More Than Mass
The tax benefits for real estate investors in Belarus do not boil down to a single “miracle rate,” but to a layering of mechanisms, highly differentiated based on location, project nature, and investor status. For a foreign individual, buying an apartment in Minsk remains a classic investment, with a stable and rather moderate tax framework. For a company considering building an industrial or logistics asset in a special economic zone, technology park, or industrial park like “Great Stone,” the legal and tax architecture offers, on the contrary, an almost experimental field: 0% profit tax, 0% property tax, 0% land tax, VAT neutralized on equipment and sometimes on sales.
To benefit from tax generosity in Belarus, real estate investors must meet several conditions: meet high investment minimums, satisfy export requirements, orient towards high technology or import substitution, and locate in targeted regions. The key is to design hybrid projects where the value comes not only from real estate and rents but also from an economic activity recognized as a priority by the authorities.
In a world where many countries are tightening the tax screws on real estate, Belarus has made the opposite choice: putting its tax law at the service of an industrial and territorial policy. This bet involves political and operational risks that each investor must assess. But for those who accept this equation, the range of tax benefits offered to real estate – from a small apartment to a turnkey factory – remains, to this day, one of the most extensive in the region.
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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.
