Foreign Investment in Kazakhstan

Investment Vehicle Selection

Advising on the optimal legal structure for foreign investment in Kazakhstan — Kazakhstani LLC (LLP), JSC, AIFC entity, branch office, or representative office. Each structure has different governance, liability, tax, and regulatory implications. Bond Stone advises on vehicle selection based on the investor's objectives, sector, and exit strategy.

Investment Incentives & SEZs

Advising on available investment incentives — Special Economic Zones, investment agreements, Astana Hub (IT sector), and sector-specific tax incentives. Kazakhstan has 18 Special Economic Zones (Ministry of Industry and Construction, October 2026) offering CIT relief, land tax and property tax relief, and customs relief for priority activities; the zones at the Chinese border are covered in Khorgos Eastern Gate SEZ. Bond Stone advises on SEZ eligibility criteria, application procedure, and operating conditions.

Foreign Ownership Restrictions

Advising on foreign ownership restrictions in regulated sectors — subsoil use, banking, insurance, media, and telecommunications. Media and some telecoms operators have percentage limits; the other sectors work mainly through permits and regulatory consents. Bond Stone advises on ownership restriction analysis at the outset of every inbound investment mandate.

Profit Repatriation & Currency Control

Advising on dividend repatriation procedures, intercompany loan mechanics, and compliance with the National Bank's currency control regulations. Under the Entrepreneurial Code investors may use their income freely after tax and hold accounts in foreign currency — but the procedural requirements of currency legislation must be carefully observed.

Investment Protection & BIT

Advising on bilateral investment treaty protections available to foreign investors in Kazakhstan — Kazakhstan has signed BITs with many states, not all of them in force, with investor-state arbitration access under ICSID, UNCITRAL, and ICC rules. Bond Stone advises on structuring investments to maximise treaty protection and on the interaction between Kazakhstani domestic law protections and BIT rights.

AIFC — English Law Investment Structuring

Using the AIFC as the legal framework for foreign investment in Kazakhstan — AIFC holding company above Kazakhstani operating assets, English common law SPA and shareholders agreement, AIFC Court dispute resolution. The AIFC RLA status of Bond Stone's partners enables the firm to advise on both the AIFC and Kazakhstani law layers on a single mandate.

Legal protection — Entrepreneurial Code Article 276

Every investor in Kazakhstan, foreign or domestic, is entitled to full and unconditional protection of its rights and interests, compensation for harm caused by unlawful acts of state bodies, and stability of contracts with state bodies. Chapter 25 contains no express national treatment clause: national treatment, where it applies, comes from the applicable BIT. Foreign participation is restricted in sectors covered by sector-specific legislation.

Protection against expropriation — Entrepreneurial Code Article 279

The forced taking of an investor's property for state needs (nationalisation or requisition) is allowed only in exceptional cases established by law. On nationalisation the state compensates the investor's losses in full; on requisition the investor receives the market value of the property and may challenge the valuation in court. Further standards, such as prompt payment in convertible currency and cover for indirect expropriation, depend on the applicable BIT.

Use of income — Entrepreneurial Code Article 277

Investors may use income from their activities at their own discretion after paying Kazakhstani taxes and mandatory contributions, and may open accounts in national and foreign currency with banks in Kazakhstan. Transfers abroad follow banking and currency legislation, and the National Bank's currency control regulations govern the mechanics of the transfer. A free transfer guarantee may also come from the applicable BIT. Bond Stone advises on the procedural requirements for compliant profit repatriation.

Stability guarantee — investment contracts

Stability depends on the contract. An investment agreement gives a 100% CIT reduction, a land tax coefficient of 0 and property tax at 0%, and fixes those rates and reductions until its preferences end: up to 10 years in total, with property tax relief limited to 8 years and the CIT reduction for expansion or renewal to 3 years (Tax Code, Article 736). An investment commitment agreement with the Government gives a 10-year guarantee of tax stability, which does not cover VAT, excise, individual income tax and some other payments (Article 737). For contracts concluded before 1 January 2026: Investment Priority Project contracts concluded from 1 January 2018 keep their tax preferences and stability guarantee until they expire, earlier ones the stability guarantee only, and investment commitment agreements their stability guarantee (Article 837); investment agreements keep their tax conditions and stability guarantee until they expire (Article 838); and other investment contracts that carried an import VAT exemption on raw materials keep it until they expire (Article 839). Kazakhstan also guarantees the stability of contracts between investors and state bodies, with listed exceptions (Entrepreneurial Code, Article 276). Bond Stone advises on qualifying for and negotiating investment contracts with Kazakhstani state authorities.

Dispute resolution — investor options

Foreign investors in Kazakhstan may resolve disputes with the state through: Kazakhstani courts; the AIFC Court (for AIFC-related matters); international arbitration under the investor's applicable BIT (ICSID, UNCITRAL, ICC); or the Investment Ombudsman. Bond Stone advises on the most appropriate dispute resolution route based on the nature of the dispute and the investor's treaty position.