Recently, Kazakhstan has shown a high investment potential and there are several reasons for that:
The strategic location of the state
The Great Silk Road once had passed through the territory of Kazakhstan, because Kazakhstan is located in the heart of the Eurasian continent, thereby acting as a "land bridge". Three states from the "four" BRICS countries are located near Kazakhstan: Russia, China, and India.
Kazakhstan is a new strategic location at the crossroads of Europe and Asia. This also means preferential access to the regional market of more than 500 million consumers and access to the common market of the Eurasian Economic Union of more than 180 million consumers, as well as time-efficient cargo transportation. For instance, the route of Europe-China-St. Petersburg takes a 10 days period; a route to Hamburg takes a 16 days period, and a route to London takes an 18 days’ period.
Kazakhstan plays a key role in “The belt and road” initiative implementation meaning that more than 3,000 out of 10,000 km in total has passed through the territory of Kazakhstan, making it an important section of the mainland corridor and significantly optimizing the transportation in terms of time and cost.
The seaports of Aktau and Kuryk, the Republic of Kazakhstan have in place infrastructure that is similar to one of seaports in the other countries: Batumi (Georgia) and logistics Lianyungang (China).
A transcontinental highway on the route "Western Europe - Western China" will enable cargo transportation between China and Europe over a 10 day period.
Favorable investment climate
In Kazakhstan, great attention is paid to all aspects of a favorable business climate for the investors such as alleviating administrative barriers and simplified procedures, improved customs and tax administration.
Favorable tax regime
The general rate of taxes and social charges. Kazakhstan ranks 5th in terms of tax policy in the IMD rating.
The simplified business start-up procedures:
There are the following state support measures:
13 special economic zones (0 percent corporate income tax, land tax, customs duties and VAT on imports of goods into special economic zones, property tax);
24 industrial zones (availability of ready for use infrastructure, long-term land lease agreements, and loan repayment schedules based on the value of land, the absence of industry restrictions, the possibility of concluding an investment contract).
Investment Agreement
A new tool for large investment projects is the investment agreement
- Reduction of tax liabilities up to 20%
- Stability of legislation (up to 25 years)
- Reimbursement of up to 20% of the cost of construction and installation works and purchase of equipment
Provision of additional preferences provided for by the legislation of the Republic of Kazakhstan in agreement with the Government
Investor rights protection
Attraction and effective use of foreign investment are one of the main areas of mutually beneficial trade and economic cooperation of the Republic of Kazakhstan with other countries.
Human capital