Kazakhstan Rental Income Guide 2026

Rental Income — 10% IIT for Individuals

Individual landlords pay IIT at 10% on net rental income (gross rent minus allowable deductions). The standard approach allows deduction of documented expenses directly related to the rental property, including mortgage interest, insurance premiums, maintenance costs, property management fees, and annual property tax. Alternatively, individuals may elect a standard deduction of 30% of gross rental income without the need to document actual expenses. The net rental income is declared in the annual tax return filed via E-Salyq by 31 March.

Simplified Tax Regime for Sole Proprietors

Individual entrepreneurs registered as sole proprietors (IP / ИП) may qualify for a simplified tax regime on rental income. Under this regime, the tax rate is reduced to 3% of gross rental income (plus mandatory social contributions), compared to the 10% IIT rate under the general regime. To qualify, the landlord must register as a sole proprietor with the State Revenue Committee, meet the turnover threshold (currently KZT 24 million per year), and must not employ more than 50 employees. The simplified regime is particularly attractive for landlords with multiple rental properties or high rental income.

Corporate Landlords — 20% CIT

Companies deriving rental income from property are taxed at the standard 20% CIT rate on net rental profits. Corporate landlords may deduct all business expenses related to the property, including mortgage interest, maintenance, utilities, insurance, property management, depreciation (buildings at 8% declining balance), and property tax. Rental losses can offset other business income. Companies must file annual CIT returns by 31 March, declaring rental income and expenses.

Non-Resident Landlords — 15% WHT

Non-resident individuals and companies receiving rental income from Kazakh property are subject to 15% withholding tax on the gross rental amount. This is a final tax — the non-resident landlord does not need to file an annual return for rental income. The tenant or property manager must deduct the 15% and remit it to the tax authorities through the E-Salyq portal. Reduced rates may apply under Kazakhstan's double tax treaties (e.g., the Kazakhstan-UK DTA may reduce the rate to 10% with a certificate of residence).

Allowable Deductions

Individual landlords under the standard regime may deduct the following documented expenses from gross rental income:

• Mortgage interest: Interest on loans used to purchase, construct, or improve the rental property
• Repairs and maintenance: Costs of keeping the property in a habitable and marketable condition
• Insurance premiums: Buildings and landlord liability insurance
• Property management fees: Fees paid to managing agents or property management companies
• Annual property tax: The property tax paid to the local municipality
• Utilities: If paid by the landlord rather than the tenant
• Depreciation: Capital cost allowance on the building structure (not land)

Capital improvements that extend the useful life of the property are not immediately deductible but may be added to the cost basis for capital gains purposes upon sale.

FAQs

Is rental income subject to VAT?

Residential rental income is generally exempt from VAT. Commercial rental income may be subject to VAT at 12% if the landlord is VAT-registered (monthly turnover exceeding KZT 30,000). Most individual landlords renting residential property are not required to register for VAT.

Can I deduct mortgage principal from rental income?

No, only the interest portion of the mortgage payment is deductible as an expense. The principal repayment is a capital payment and is not deductible for tax purposes. However, the principal amount may be included in the cost basis for calculating capital gains upon sale.

What happens if I don't declare rental income?

Failure to declare rental income may result in additional tax assessment by the State Revenue Committee, penalties of 5-50% of the unpaid tax, and interest at the refinancing rate plus 1% per month. The tax authority may also obtain rental information from utility records, property registrations, and tenant declarations.

Disclaimer

This guide provides general information about Kazakhstan rental income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Kazakh tax advisor or the State Revenue Committee for advice specific to your situation. InvestmentKit does not provide tax advice.