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In Kazakhstan, there are specific situations where individuals purchasing an apartment may be required to explain the origin of their funds to tax authorities. These new regulations have sparked numerous questions, particularly following recent legislative changes.

Who Needs to Declare?

While a universal declaration system was initially planned for all citizens, a presidential directive has revised this requirement. Ordinary citizens, unless they are involved in business or fall into a special category, are no longer obligated to file annual declarations.

When is a Declaration Necessary?

Despite the general exemption, certain individuals must still submit declarations. According to Article 417 of the Tax Code, those with assets abroad, income requiring separate tax payments, digital asset holders, or individuals making significant purchases are required to declare. This includes the purchase of high-value property.

Apartment Purchases and Declaration Thresholds

The legal threshold for mandatory declaration related to property purchase is set at 20,000 Monthly Calculated Indices (MCI). For instance, if the MCI in 2026 is 4,325 tenge, 20,000 MCI amounts to 86.5 million tenge. If an apartment's cost exceeds this sum, a declaration is mandatory. It's important to note that declarations are typically filed based on the previous year's financial activity. For a 2025 declaration, the MCI rate applicable in that year would be used. In 2025, with an MCI of 3,932 tenge, 20,000 MCI equals 78,640,000 tenge.

Tax Implications on Property Sales

A crucial point to remember is that selling a property for more than its purchase price is considered income. If the property was owned for less than two years, a 10% individual income tax (IIT) is levied on this profit.

What Information Goes into a Declaration?

When filling out a declaration, individuals must provide details about the property acquisition, including the source of funds. This could involve indicating whether the apartment was purchased through a mortgage, loan, inheritance, or personal savings, thereby explaining the financial basis of the transaction.

How Tax Authorities Verify Information

After a declaration is submitted, it may undergo a kameralnyı kontrol (cameral control) review. This involves analyzing information without a formal audit. Tax authorities compare an individual's declared income, the value of acquired assets, and financial transactions. If expenses significantly outweigh declared income, the tax authority may issue a notice requesting clarification. These reviews are primarily aimed at identifying undeclared income from business activities.

Consequences of Failing to Prove Funds

According to the State Revenue Committee, purchasing an apartment itself does not automatically incur a penalty. Liability arises only from violating declaration submission rules. If an individual is required to declare but fails to do so on time, Article 272 of the Code of Administrative Offenses applies. A first offense results in a warning, while a repeat offense within a year incurs a fine of 15 MCI (64,875 tenge in 2026). If incomplete or false information is provided in the declaration, penalties are less severe: a warning for the first offense and a fine of 3 MCI (12,975 tenge) for subsequent instances. Should tax authorities determine that the funds used for an apartment purchase originated from undeclared income, an individual income tax of 10% may be assessed. For example, if an apartment costs 90 million tenge and this sum is deemed taxable income, the tax could approach 9 million tenge. However, in practice, individuals can often prove a portion of the funds through savings, sale of other assets, or loans. In such cases, tax is calculated only on the portion of the apartment's cost that cannot be accounted for.

Declaring Property Sales

For ordinary citizens, selling an apartment in Kazakhstan does not, in itself, necessitate filing a separate declaration. The sale of immovable property is considered a disposal of assets, and thus, form 270.00 is not required. Exceptions may apply if the property is located outside Kazakhstan or if the seller is a civil servant.

Renting Out Property

Renting out property creates a different scenario due to the generation of regular income. If an individual is not registered as a business entity and receives rental income, they must file a declaration (form 270.00) and pay a 10% individual income tax on their earnings. For example, renting an apartment for 200,000 tenge per month results in an annual income of 2.4 million tenge, with taxes around 240,000 tenge.

Self-Employment Option for Landlords

Many landlords opt for the status of self-employed individuals. In this regime, the income tax is 0%, with only social payments, approximately 4% of income, being due. For instance, with a monthly rent of 250,000 tenge, the annual income is close to 3 million tenge, and the annual payments would be around 120,000 tenge.

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