A guide to buying property in Mongolia
May 2, 2024 Reading Time: 10 minutes
What foreign buyers can own in Mongolia, the costs involved and the buying process, step by step.
Buying property overseas can feel daunting, particularly when the rules on ownership, taxes and registration differ from those at home. This guide gives international buyers a clear overview of how buying property in Mongolia works, from what foreign buyers can own to the costs and the steps from agreement to registration.
Last reviewed: October 2026. This guide is for general information only and is not legal or tax advice.
At a glance
- What you can buy: foreign buyers can generally own apartments and buildings, but not the land beneath them, as private land ownership is limited to Mongolian citizens.[1][2]
- Main transaction tax: a 2% tax on the gross sale proceeds, normally paid by the seller.[2][3]
- Typical buyer costs: notary and legal fees, which are modest compared with many markets.[2]
- Financing: mortgages for non-residents are limited, so many international buyers pay in cash.[2]
- Essential step: use a local lawyer or licensed agent to verify the title before you sign.
Understand what you can own
Mongolian law limits private land ownership to Mongolian citizens, and foreign investors and companies are barred from owning land. Foreigners can, however, own buildings and other permanent structures, and may hold rights to use land.[1] In practice this means a foreign buyer of an apartment owns the apartment itself, while a buyer who wants land will usually need a land use arrangement rather than ownership.[2] Foreign investors cannot obtain land possession rights, and use rights can be revoked or reassigned under the terms of the agreement, so these should be reviewed carefully by a lawyer.[1] Rules can change, so always confirm the current position before committing.
Think about what you are looking for
Be sure to speak with your agent about your individual property needs. Will it be for an investment, or do you plan to live in the property? What is your budget? Will you be living alone, or with your family? These questions are important to settle before you start viewing properties.
View the property
Mongolian winters are long and cold, so heating matters. It is important to check whether the building is connected to the central heating, water and sewage system. If it is not connected, consider the long-term cost, as your energy bills could rise sharply to heat the property through the winter.
Check the title and ownership certificate
Every owner of an apartment holds an Immovable Property Ownership Certificate, which serves as proof of ownership. Your lawyer or licensed agent should check that the certificate is genuine and that the seller is the registered owner. They should also check the register for mortgages, tax debts or disputes. Mongolia has an established registry for immovable property, held by the State Registration Office.[1][2]
What it costs
Costs vary by property and transaction, so treat the figures below as a guide and ask your lawyer or agent for a written estimate before you commit.
| Cost | Usually paid by | Indicative level |
|---|---|---|
| Transfer tax on sale proceeds | Seller | 2% of the sale price[2][3] |
| Notary fee | Buyer | Around 0.10% of the price[2] |
| Legal fees | Buyer | Around 0.10% to 0.50% of the price[2] |
| Agent fee | Seller (commonly) | Around 3% of the price[2] |
Registration fees and any other costs should be confirmed locally before you sign, as they can change.
The buying process, step by step
1. Agree the sale and sign the Sales and Purchase Agreement. Once you have agreed terms with the owner, a written agreement sets out the property, price, payment method, transfer date and each party’s obligations.[2]
2. Notarise the agreement. The agreement is notarised and submitted to the local registration office. Both parties should bring their passports and the original Immovable Property Ownership Certificate.[2]
3. Pay the taxes and fees. The seller pays the 2% tax, and the receipt is needed when applying for the transfer of ownership.[2][3] Taxes and fees need to be paid before the property is registered in your name.[2]
4. Register the transfer of ownership. Your lawyer or agent will help you submit the application to the District Immovable Property Registration Office. The usual documents include:
- Notarised copies of the passports
- A copy of the Sales and Purchase Agreement
- The receipt proving the 2% tax has been paid
- The registration fee receipt
- The application form (your lawyer or agent will help with this)
Processing times vary by office, so ask your lawyer for the current timeline.
5. Complete the payment and move in. Where the property is occupied, agree a move-out date in the contract. Withhold a small part of the final payment until you have inspected the property on the day you move in, to protect against any unforeseen damage. Once you have checked the property and received the keys, pay the balance.
6. Change the locks. The first thing to do when you take possession is to change all the locks.
Frequently asked questions
Can foreigners buy property in Mongolia?
Yes, foreigners can generally buy apartments and buildings, but not land. Land can usually only be used under a lease or use right.[1][2]
Can a foreign buyer get a mortgage?
Mortgages for non-residents are limited. Where they are available, larger down payments are typically required, and many international buyers pay in cash.[2]
Who pays the transfer tax?
The 2% tax on sale proceeds is normally paid by the seller, but this should be confirmed in the contract.[2][3]
Do I need a lawyer?
It is strongly recommended. A local lawyer or licensed agent can verify the title, review the contract and handle registration.[2]
Are there ongoing costs?
Yes. Ask about annual property taxes, building service and heating charges, and take local tax advice on any rental income and on your tax position in your home country.
References
- U.S. Department of State, 2026 Investment Climate Statements: Mongolia. state.gov
- Global Property Guide, How to Buy Investment Property in Mongolia as a Foreigner (updated April 2025). globalpropertyguide.com
- PwC, Worldwide Tax Summaries: Mongolia, Corporate – Income determination (reviewed 8 June 2026). taxsummaries.pwc.com
This guide is for general information only and does not constitute legal or tax advice. Laws, taxes and fees change, so please consult a qualified local lawyer and tax adviser before buying property in Mongolia. Chestertons accepts no liability for decisions made on the basis of this guide.
frequently asked questions
The guide says proof of ownership is the Immoveable Property Ownership Certificate. An agent can verify it and the owner's credibility, usually within one or two days.
The seller pays property sales tax of 2% of property value after signing. Ownership transfer fees are MN₮40,000 for urgent and MN₮20,000 for regular processing, and notary fees range from MN₮10,000 to MN₮300,000 (US$5 to US$150) depending on property value.
Buyer and seller sign at a notary office in the district where the property is located, bringing passports and the original ownership certificate. The buyer pays notarisation and registration costs and the outstanding balance to receive the certificate.
Processing takes three to five working days. Required documents include notarised passport copies, the signed agreement, proof of the 2% tax payment, the transfer fee receipt and the application form.
The guide says most agencies do not charge buyers or tenants; sellers or lessors usually pay commissions or fees.