Mongolian Properties - Overseas Property & Real Estate in Mongolia | Property Taxes in Mongolia - The real estate sector is currently still large.

Property Taxes in Mongolia

The real estate sector is currently still largely untaxed, in an effort to promote investments into this sector and encourage construction and growth. There are a few taxes which are currently levied, detailed below:

Property Sales Tax

2% of the total value of the property being purchased needs to be paid to the Government as a sales tax. This is easily payable in most banks of the city. This tax is generally paid in full by the buyer, and sometimes paid for by the seller or split between both depending on negotiations carried out prior to the sale.

Value Added Tax

There is a 10% VAT tax which, according to the law, is applicable on all items sold in Mongolia. According to some this includes property but so far no one has ever paid this. The law does not mention property or real estate so is still very much a grey area. We expect this bill to be ammended soon so that real estate is included in it. Clients will be kept informed of developments.

Capital Gains Tax

There is no capital gains tax applicable in Mongolia at this present time.

Income Tax

While an income tax is applicable in Mongolia, it is not the case on income generated from rentals (so far anyway, likely to change soon).

Please note that the Mongolian property market is currently lacking in regulations. This is not due to an oversight or lack of means from the Government, but rather to stimulate construction and the maturation of a sector wich is in need of rapid growth to sustain the levels of urbanisation currently witnessed in Ulaanbaatar.

What are these?