A guide for foreign investors interested in purchasing Mongolian real estate.Until the end of the Soviet era, all land in Mongolia was owned and managed by the state. When the Constitution was enacted in 1992 new forms of land and immovable property tenure became available. However, the concept of immovable property remains an important distinction in a country with a large nomadic population.
Before undertaking any financial decision, we suggest investors seek the advice of a trusted expert real estate agent for guidance through the buying process.
Can foreigners own property in Mongolia?
Except for land, there are currently no restrictions on foreign residents or non-residents owning buildings or apartments in Mongolia. Certified copies of the buyers’ passports must be submitted to the Property Registration Office, along with the demand for a new certificate.
Mongolian property laws were rewritten after the peaceful transition to a market economy at the fall of the Soviet Union. The new government put in place a comprehensive ‘floating freehold’ system of immovable property, allowing property owners to hold a freehold interest over the property, but not over the land on which it sits.
Major property legislation
In respect of the real estate sector, the following laws are the most relevant according to JLL:
• The Constitution
• Civil Code
• General Law on Taxation
• Law on Registration of Immovable Property
• Law on Investment
• Law on Immovable Property Tax
• Law on Personal Income Tax
• Law on Land
• Law on Land Fees
• Law on Allocation of Land to Mongolian Citizens for Ownership
• Law on State Registration of Property Ownership Right and Other Related Property Rights
• Law on Urban Planning
• Company Law
• Law on Licencing
For further information, contact us at info@mongolianproperties.com or call (+976) 7730 0770
