How to legally rent out an apartment in Kazakhstan

So which option is more profitable?

Why you need a rental agreement

You can legally rent out housing both with or without registering as an IE. In any case, a rental agreement with tenants must be signed. This document protects against unforeseen situations: it defines the rights and obligations of the parties, rental period, amount and payment date, and whether a security deposit is required. The agreement may also cover other aspects: frequency of landlord visits, compensation for damage, etc.

It’s also common to sign an acceptance-transfer act, which lists all property in the rental unit: kitchen appliances, bedroom furniture, decor, etc. This document is useful if any damage occurs.

Neither the agreement nor the act requires notarization — signatures from both parties are sufficient.

How to pay taxes without registering as an IE

Kazakh law allows landlords to receive rental income without registering as an IE. In this case, a personal income tax (PIT) of 10% must be paid.

Tax is paid once per year — after submitting declaration form 270 to the tax authority. It must be paid no later than September 15. That means income for 2025 must be reported by September 15, 2026.

Example: if you rent out a 2-room apartment for 300,000 KZT per month, annual income will be 3.6 million KZT. 10% of this amount — 360,000 KZT — must be paid as tax.

Registering as an IE to rent out an apartment

If you decide to register as an individual entrepreneur to legally receive rental income, remember that IEs pay not only taxes but also social contributions. These are calculated based on the minimum wage (MW), which in 2025 is 85,000 KZT.

Social contributions for IE:

• OPV (mandatory pension contributions): 10% of MW — 8,500 KZT

• OPVR (additional pension contributions by employer): 2.5% — 2,125 KZT

• SO (social contributions): 5% — 4,250 KZT

• VOSMS (medical insurance): 5% of 1.4×MW — 5,950 KZT

Total social contributions: 20,825 KZT

Thus, the total amount of social contributions is 20,825 KZT. 

Now let’s look at the taxes. The amount depends on the selected tax regime. Individual entrepreneurs (IEs) with the activity code 68201 'Rental and management of own real estate' can choose one of two tax regimes: patent-based or simplified:

Patent-based regime

Under this regime, the entrepreneur cannot hire employees, and annual income must not exceed 3,528 MCI (13,872,096 KZT). This means the maximum monthly income from tenants must be no more than 1.15 million KZT, or 38,000 KZT per day for daily rentals.

Rental conditions under the patent regime are quite flexible. For example, an entrepreneur can rent out multiple properties or offer them for rent only part of the year.

What is the tax rate for renting an apartment under the patent-based regime in Kazakhstan?
The landlord must pay a Personal Income Tax (PIT) — 1% of total income.
For example, if you earn 10 million KZT, the tax will be 100,000 KZT.

Simplified tax regime

This regime allows hiring employees. The annual income limit is 24,038 MCI (94,517,416 KZT). That means you cannot receive more than 15 million KZT per month from tenants (or 517,000 KZT per day).
If using the TIS (online system), the annual income limit increases to 94,086 MCI (369,946,152 KZT).

Tax rate: 3% total — 1.5% PIT and 1.5% social tax.
Example: if you earn 40 million KZT in 6 months, the tax will be 1.2 million KZT.

Taxes are paid twice a year by submitting declaration form 910:

• July 1 to August 15 (for the first half of the year)
• January 1 to February 15 (for the second half)

If payment is made in cash or by card, an online cash register is required.

What about IE under the Special Tax Regime (STR)?

If you operate under the Special Tax Regime and use the E-Salyq Business app, renting out an apartment through your IE is allowed only if the following conditions are met:

• You do not have any hired employees
• You run the business yourself
• Your annual income does not exceed 3,528 MCI (13,872,096 KZT), which equals approximately 1.15 million KZT/month or 38,000 KZT/day
• You are not subject to VAT

Entrepreneurs under the STR pay Personal Income Tax (PIT) at a rate of 1% of income. The tax must be calculated by the 15th of the month following the reporting month and paid by the 25th.
Since all payments can be made easily through the E-Salyq Business app, monthly tax payment is straightforward.

So which option is more profitable?

When choosing how to legalize rental income, experts recommend first considering the amount of income you receive:

• If your income is small, you may not need to register as an IE. Another option is to register under the patent-based tax regime. However, remember that IEs must also pay social contributions in addition to taxes.

• If you plan to grow your rental business (e.g., renting out several apartments), it’s better to explore the simplified tax regime.

Legal rental not only helps you avoid fines — it also gives tenants access to free medical care and allows you to increase your pension savings. Since the income is officially recorded, banks take it into account when considering loan applications.

This article has been translated from its original language using neural network-based translation technology.