Real estate ownership environment for foreigners

There are no restrictions places on foreigners owning apartments, building, garages, etc. Equal measures are applied to Mongolian and foreigners.

There are however restrictions to foreigners regarding the lease and ownership of land. A foreign individual is not allowed to own or lease land in Mongolia. A foreign registered company is allowed to lease land, build on the land and sell the construction build on the land, but is not allowed to buy land.

When buying a property, landlord obtains an ownership certificate issued by the Mongolian authorities, which can be used as collateral in banks and other financial institution. This certificates is a prove of ownership and is valid in any court of law.

Neither the Government nor any other legislative body can evict landlords or confiscate property in Mongolia, the freehold properties have similar legal protection as what can be found in Europe or the USA.

There are no restrictions placed on the flow of foreign investment in or out of the country. A landlord willing to sell his property can repatriate is investment without any restriction or taxes. The currency risk associated with Mongolia is relatively low as all properties are evaluated in USD

At the present time, the fiscal environment surrounding the real estate market in Mongolia are very beneficial to investors. In Mongolia there is a 10% VAT tax but it has never been collected on real estate transaction.

There is a 2% tax applicable upon the sale and a property. There is no capital gains taxes or any rental income taxes applicable if the property is privately owned. If the property is owned by a company there will be 10% income taxes applicable.