There are plans to ban foreigners in Kyrgyzstan from owning the land on which their purchased property stands

n Kyrgyzstan, there is a proposal to amend the rules governing land ownership by foreign nationals and legal entities. The relevant draft law stipulates that when a building, flat or other property is purchased, the land on which the property stands will not be transferred to the foreigner as private property.

Under the draft law, the land plot would be transferred to state or municipal ownership, whilst the foreign property owner would be granted a fixed-term right to use the land.
The initial term of use would be 20 years. It is proposed that this be automatically extended for a further 20 years and then for 10 years. Thus, the maximum term of land use could be 50 years.

If a foreign owner sells the property to another foreigner, the land will remain in state or municipal ownership, whilst the right of use will pass to the new owner for the remaining term.

If the property is sold to a citizen or legal entity entitled to hold the relevant land in private ownership, the plot may revert to private ownership.

Separate rules apply to flats and non-residential premises in multi-occupancy buildings. A foreign owner’s share of the land will be transferred to the state or the local authority, whilst they will receive a corresponding share in the right of joint fixed-term use of the land plot.

The draft bill also provides for a review of foreigners’ already registered land rights. It is proposed that an inventory of such properties be carried out within 12 months of the law coming into force. Foreign nationals found to hold private ownership rights to land will be given six months to voluntarily re-register the title.

If the owner refuses or fails to formalise the transfer of the land, the matter will be resolved through the courts.

The drafters of the bill note that the changes are aimed at implementing a provision of the Constitution of Kyrgyzstan, according to which land cannot be held in private ownership by foreign citizens or legal entities with foreign participation.

At the same time, foreigners are to retain the possibility of owning property situated on the land — through the introduction of a separate mechanism for the temporary use of land plots.
The draft bill provides for amendments to the Land Code, the Civil Code and the Housing Code, as well as to legislation on the registration of property, mortgages and state and municipal property.

It is proposed that the law come into force three months after its official publication.