The Kyrgyz government has proposed a draft resolution for public discussion, aiming to reduce state duty rates for property transactions conducted in a non-cash form. The goal is to promote a balance between cash and non-cash payments in property deals and support the state program to boost non-cash payments.
According to the proposal, state duty rates for property transactions requiring state registration and notarization would be ten times lower for non-cash payments than for cash payments. Additionally, the government plans to introduce escrow accounts. These accounts, established through a tripartite agreement between the seller, buyer, and a bank, ensure the secure transfer of funds to the seller in the national currency post-registration of the property sale-purchase agreement.
The escrow account is viewed as a reliable and secure tool for property transactions. The government recommends that state banks impose a commission fee for managing escrow accounts that does not exceed 0.02% of the property transaction amount. This initiative aims to streamline property transactions and improve the safety and efficiency of non-cash payments in Kyrgyzstan.
