Guide on Property Taxes in Mongolia
Tax Rate on Rental Income |
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| Monthly Income | $1,500 | $6,000 | $12,000 |
| Tax Rate | 20.00% | 20.00% | 20.00% |
Nonresidents are taxed on their Mongolian-sourced income.
Rental Income Tax
Income of nonresident individuals is taxed at a flat withholding tax rate of 20%.
Capital Gains Tax
Capital gains tax is levied on the gross sale proceeds of a property at a rate of 2%
Property Tax
Property tax is levied on Mongolian real property at a rate of 0.60% to 2%. The applicable tax rate depends on several factors, such as the location of the property, the size of the property, and other factors. The properties that are located in Free Trade Zones are exempt from property tax.
Corporate Tax
For companies with an annual revenue of less than MNT 300 million, the tax rate is 1% (except for companies in the mining, petroleum, alcoholic beverage, and tobacco industries). Income earned by companies is taxed for corporate income tax of 10% for taxable income up to MNT6 billion. Companies are liable for corporate income tax of 25% for taxable income exceeding MNT6 billion. Income-generating expenses are deductible when calculating taxable income. However, it is important that the sale of property is taxed at a rate of 2%
Corporate Income Tax |
|
| TAXABLE INCOME, MNT | TAX RATE |
| Up to MNT6 billion | 10% |
| Over MNT6 billion | 25% on band over 6 billion |
Property Buying Costs and Taxes in Mongolia
| Transaction Costs | ||
| Who Pays? | ||
| Transfer tax | 2.00% | seller |
| Notary fees | 0.10% | buyer |
| Legal fees | 0.10% - 0.50% | buyer |
| Real Estate Agent Fee | 3.00% | seller |
| Total costs paid by the buyer: | 0.20% - 0.60% | |
| Total costs paid by the seller: | 5.00% | |
| ROUNDTRIP TRANSACTION COSTS | 5.20% - 5.60% | |
| Source: Global Property Guide | ||