Tax on Gifting an Apartment in Kyrgyzstan in 2026: Who Pays and How Much
Gifting an apartment is not only a joyful event but also a potential tax obligation. Let's break down who pays, how much, and how to avoid unnecessary costs.
Who Pays Tax When Gifting?
The tax is paid by the recipient – the person who receives the apartment as a gift. From the perspective of KR tax law, property received as a gift constitutes income on which income tax is payable.
The donor does not pay tax – they receive nothing.
Tax Rates When Gifting Real Estate
Close Relatives – 0% Tax
Exempt from tax when receiving real estate as a gift:
- Spouse
- Children (natural and adopted)
- Parents
- Brothers and sisters
- Grandparents
- Grandchildren
Legal basis: The Tax Code of the KR provides for an exemption from income tax when receiving property free of charge from close relatives.
Everyone Else – 10% of Market Value
If an apartment is gifted to someone who is not a close relative (for example, a nephew, friend, civil partner, or colleague) – the recipient is required to pay:
10% of the market value of the apartment
Example: An apartment with a market value of 6,000,000 som is gifted to a friend: 6,000,000 × 10% = 600,000 som in tax
This is comparable to the cost of a small car. Many people are unaware of this and receive unexpected demands from the tax authorities.
How Is Market Value Determined for Tax Purposes?
The tax authority uses data on the assessed (cadastral) value or commissions an independent valuation. If you disagree with the valuation – you can challenge it by ordering an alternative valuation from a licensed appraiser.
When to File a Declaration?
The recipient (if not a close relative) is required to:
- File a declaration of income by 1 April of the year following the year the gift was received
- Pay the tax by 1 April of the same year
Example: received an apartment as a gift in November 2026 → file the declaration and pay the tax by 1 April 2027.
What Happens If You Don't Pay?
- Penalty: 0.09% of the debt amount per day
- Fine: 50% of the unpaid amount (for deliberate evasion)
- For large amounts – criminal prosecution is possible
Alternative to a Gift: Sale-Purchase Agreement
If you want to transfer an apartment to someone who is not a close relative with minimal taxes – consider a sale-purchase agreement at a minimum price. Technically this is a transaction, and the seller's tax on "profit" (the price difference) can be zero or minimal when properly structured.
Important: this is a legal arrangement when there is a genuine intention to make an arm's-length transaction. A fictitious transaction with a deliberately understated price is a tax offense.
Gift vs. Sale: Tax Comparison
| Situation | Gift | Sale-Purchase |
|---|---|---|
| Close relative | 0% | 0% (if seller owned for 3+ years) |
| Non-relative | 10% of market value | 10% of seller's profit |
Does the Donor Pay Tax When Gifting?
No. The donor receives no income, so no tax is paid. Their expenses are only the notary fee and GRS state duty.
Consultation with Aziza Talantbekovna – realtor, 30 years experience, Bishkek. From 2,000 som. Tel: +996 702 584 477
PAID consultation. From 2,000 som. Even for a single question. Tel: +996 702 584 477