flag Kyrgyzstan Kyrgyzstan: Investing

FDI in Figures

According to UNCTAD's World Investment Report 2023, FDI flows to Kyrgyzstan reached USD 291 million in 2022, up by 28.6% compared to the level recorded one year earlier. At the end of the same period, the stock of FDI reached USD 3.7 billion, or around 34.1% of the country’s GDP. According to data from the National Statistical Committee, FDIs are mostly directed towards the mining industry, followed by manufacturing and financial intermediation and insurance. The main investing countries are Russia, China, Kazakhstan, the U.S., and the UK. Preliminary data from the National Statistics Committee indicates that China emerged as the primary source of foreign direct investment (FDI) in Kyrgyzstan in 2023. The total inflow of FDI into the Kyrgyz economy amounted to USD 798.2 million, with China's contribution reaching USD 220.8 million, surpassing investments from Russia and Kazakhstan, which were USD 180.3 million and USD 132.1 million, respectively. Significantly, China directed the majority of these funds towards key sectors such as manufacturing, mining, and financial intermediation, with investments of USD 226.4 million, USD 169.2 million, and USD 156.8 million, respectively. The rise of China as the leading investor in Kyrgyzstan marks a notable transformation in the economic dynamics, amplifying the competition with Russia for influence in the region. While Russia has upheld strong economic and security partnerships with Kyrgyzstan, it encounters obstacles in countering the expanding cultural cooperation and linguistic changes facilitated by China's increasing presence.

Facilitating the entry of FDI flows into the country has been a key priority of the Kyrgyz government in recent years. However, improvements have been slow, and the business legal and regulatory framework is still considered inadequate, the same as for infrastructure. Environmental disputes over mining activities have been multiplying in recent years. In May 2021, the Kyrgyz government took control of the Kumtor gold mine owned by Centerra Gold after the passage of a law allowing it to impose external management for up to three months on mining companies operating under a concession agreement if it was found to have violated environmental regulations or endangered the environment. In October, the government announced that the state-owned company Kyrgyzgeologiya would be responsible for all precious metals mining in the country, and in April 2022, the Kyrgyz government and Centerra reached a conditional agreement by which the Kyrgyz government will take full control of the mine and give up its 26% stake in Centerra; while in June 2022, the President approved revisions to the "On Subsoil Exploitation" law, stipulating that a minimum of 30% state involvement is required to obtain a license for subsoil resource utilization. Furthermore, the country’s judicial system is not fully independent and susceptible to external political influence, and investors denounced a lack of transparency in the public procurement process (in the last five years, foreign investors have filed twenty different lawsuits against the Kyrgyz government). At the moment, there are five Free Economic Zones (FEZs) in the Kyrgyz Republic: Bishkek, Naryn, Karakol (Issyk-Kul province), Leylek (Batken province), and Maimak (Talas province). By law, the country guarantees equal treatment to investors and places no limit on foreign ownership or control. Moreover, the Kyrgyz Republic does not have any FDI screening processes in place, and the tax burden on the repatriation of profits by foreign investors has been reduced to conform to the tax rate for domestic investors. Kyrgyzstan ranks 141st among the 180 economies on the 2023 Corruption Perception Index and 112th out of 184 countries on the latest Index of Economic Freedom.


Country Comparison For the Protection of Investors

  Kyrgyzstan Eastern Europe & Central Asia United States Germany
Index of Transaction Transparency* 7.0 7.5 7.0 5.0
Index of Manager’s Responsibility** 5.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 8.0 6.8 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

Foreign Direct Investment 202020212022
FDI Inward Flow (million USD) -402226291
FDI Stock (million USD) 4,152.93,895.53,767.9
Number of Greenfield Investments*
Value of Greenfield Investments (million USD) 8031

Source: UNCTAD - Latest available data

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.


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Tax Rates

Value Added Tax (VAT)
12% (standard rate).
Certain supplies are zero-rated: exports (except for certain limited types of export), international transportation, and services connected with the service of transit air flights related to international transportation.
Supplies and exports of gold and silver alloy and refined gold and silver; supplies of pharmaceuticals; land plots; supplies and import of jet fuel consumed by international air carrier operators; residual buildings and construction; insurance, pension, and financial services; and export of works and services are exempt.
Company Tax
Withholding Taxes
Dividends: 0 (resident company)/10%, Interests: 0 (resident company)/10%, Royalties: 0 (resident company)/10%.
Social Security Contributions Paid By Employers
17.25% (15% Pension Fund, 2% Obligatory Medical Insurance Fund, 0.25% Healthcare Fund).
Other Domestic Resources
State Tax Service
Overview of Kyrgyzstan's tax measures in response to Covid-19
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Individual Taxes

Personal income tax Single flat rate of 10%

Country Comparison For Corporate Taxation

  Kyrgyzstan Eastern Europe & Central Asia United States Germany
Number of Payments of Taxes per Year 26.0 13.9 10.6 9.0
Time Taken For Administrative Formalities (Hours) 220.0 226.2 175.0 218.0
Total Share of Taxes (% of Profit) 29.0 36.5 36.6 48.8

Source: Doing Business - Latest available data.

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Investment Opportunities

Tenders, Projects and Public Procurement
Asian Developement Bank, Proposed Projects in Asia
DgMarket, Tenders Worldwide
Setting Up a Company
Consult Doing Business Website, to know about procedures to start a Business in Kyrgyzstan.
Useful Resources
Committee on Foreign Investment and Economic Development
Contact the British Embassy in Kyrgyzstan.
Contact the Embassy of Kyrgyzstan in the United Kingdom.

Business Setup Procedures

Setting Up a Company Kyrgyzstan Eastern Europe & Central Asia
Procedures (number) 4.00 5.26
Time (days) 10.00 11.78

Source: Doing Business.


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Latest Update: May 2024