In general, there are few taxes applicable to Mongolian real estate, making the process easy to understand.  It is worth noting that the tax regime will differ depending on whether the property is owned by a corporate or personal entity, and whether the owner is a Mongolian resident or a nonresident foreigner. A professional local property manager can provide assistance with investors’ compliance obligations.

Real estate tax 
Owners of immovable property in Mongolia must register their ownership with the relevant tax authority and pay an annual tax of a minimum of 0.6 percent of the total value of immovable property. The value is based on state registration valuation or insurance on the property or on the book value. Apartments are exempted from this tax. For immovable properties located Ulaanbaatar, the annual tax rate can vary between 0.6 percent and 1.0 percent, depending on location and size. 

Property purchase tax 
Taxes on property purchases in Mongolia are relatively straightforward. Stamp duty of 2 percent of the declared purchase price is typically split between the buyer and the seller, though this may be negotiated. Payment can be easily made in most banks and the receipt is required to apply for ownership transfer and obtain the new ownership certificate from the local Immoveable Property Registration Office.

Real estate leasing tax 
Personal income tax of 10 per cent is payable on the amount earned from a residential property, payable quarterly. The taxable income from property is calculated as the total income from leasing less the cost of leasing. This is the only income tax payable for foreigners who own residential property in Mongolia and reside in the country for less than 183 days in a tax year, as non-resident taxpayers are only taxed on the portion of their income earned within Mongolia. Permanent resident taxpayers must pay tax to the Mongolian authorities on their worldwide income, though Mongolia does have tax treaties for the avoidance of double taxation with 26 global jurisdictions. 

Corporate income tax
In Mongolia, corporations pay progressive rates of income tax. Mongolian corporations and foreign companies with headquarters in Mongolia are charged a tax of 10 per cent on their first MNT3 billion (roughly US$1.5 million) of income, and 25 per cent on all income in excess of the MNT3 billion threshold.  Companies with income derived from dividends or interest income transferred out of Mongolia are taxed at a rate of 20 per cent.

VAT 
Value added tax (VAT) of 10 per cent is charged on goods and services in Mongolia. Legal entities and individuals must register as VAT payers for revenues of MNT 10 million (USD 5,283) or more. This includes income from the rental of immovable or movable properties other than buildings or constructions or granting of rights to possess or use in other forms. Income from rental of residential accommodation is exempt from VAT.  A VAT number can be obtained from the Mongolian Tax Authority. 

Source: Mongolian Properties Real Estate Guide 2017
Jones Lang Lasalle Mongolia Property Investment Guide 2015