Car Rental or Purchase in Kazakhstan in 2025: Which is More Advantageous Considering Taxes?

In the dynamic market of transport solutions in Kazakhstan and amid rising tax burdens, choosing between a rental service and purchasing a vehicle has become especially relevant for residents of major cities like Almaty, Astana, and Shymkent. This article thoroughly examines the pros and cons of both options with a focus on tax obligations to help you make the most informed decision.

Main Differences: Rental vs. Purchase

When deciding between renting a car and buying one, it is important to consider not only the price but also the associated tax and administrative expenses. Key aspects include:

Rental of a Vehicle

• Low Initial Costs: Only a deposit and a monthly fee are required, avoiding large upfront expenses.
• Inclusive Service: All costs for maintenance, repairs, and processing (VAT, registration) are incorporated in the service price.
• Flexibility: Ability to switch models without being tied to long-term commitments.

Purchasing a Car

• Significant Capital Investment: Requires a considerable down payment, VAT payment (a standard rate of 12% in Kazakhstan), and a registration fee.
• Owner’s Responsibilities: The owner is accountable for paying the transport tax and maintenance costs.
• Commercial Use: There is an option to use the vehicle for business purposes to reduce the tax base, although this comes with risks of depreciation and additional tax obligations.

Tax Aspects in 2025

According to the latest data from 2025, the tax burden on vehicle owners in Kazakhstan includes the following key points:

• VAT: The standard rate is 12% and applies to both purchasing and renting (with VAT included in the rental service cost).
• Registration Fee: When purchasing, the owner must pay a fixed fee that varies by region – on average, this is between 20,000 and 30,000 tenge in 2025.
• Transport Tax: The tax amount depends on the engine capacity and market value – for passenger vehicles, rates range from 0.1% to 0.5% annually.
• Insurance and Additional Fees: Mandatory insurance and periodic inspections also add to the overall expenses.

For companies and entrepreneurs, buying a car can serve as a tool to optimize the tax base, though it is essential to consider the costs associated with maintenance, repairs, and potential depreciation.

Table: Comparative Analysis of Rental vs. Purchase (2025)

Parameter	Rental of a Vehicle	Purchase of a Car
Initial Costs	Minimal deposit and first payment (no large upfront amounts)	Significant down payment, VAT (12%), and registration fee
Tax Obligations	VAT included in the service cost; no transport tax	VAT 12% + transport tax (0.1–0.5% of value) + registration fee
Maintenance and Repairs	Included in the rental service cost	Paid by the owner (with possible tax deductions for businesses)
Usage Flexibility	High – ability to change models without long-term commitments	Low – the vehicle is owned, limiting flexibility
Risks and Responsibilities	Minimal – depreciation and losses are borne by the rental company	High – risk of depreciation and additional repair/tax expenses

Advantages of Vehicle Rental

• Low Starting Capital: No need to pay a large sum upfront.
• No Administrative Hassle: Issues related to VAT, registration fees, and transport tax are handled by the rental company.
• Flexibility and Adaptability: Ability to switch models based on current needs without long-term obligations.
• Complete Service: Repairs, technical maintenance, and insurance are included in the service price.

Advantages of Purchasing a Car

• Freedom of Use: The vehicle becomes your property, allowing you to modify and use it as you wish.
• Commercial Application: Possibility to deduct expenses (depreciation, repairs, insurance) to reduce your business’s tax base.
• No Mileage Limitations: No restrictions typical of rental agreements.
• Resale Potential: With proper selection and maintenance, the car may retain its value or even appreciate over time.

Final Analysis and Recommendations

When comparing vehicle rental and purchase in 2025, the key factor remains the tax burden. If flexibility and minimal administrative expenses are your priorities, the rental service is the optimal choice—especially for residents of major cities where market dynamics require swift responses to changing needs.

On the other hand, if you require a vehicle for long-term use and are prepared to handle additional maintenance and tax responsibilities, purchasing a car might be a profitable investment. However, it is important to note that buying a vehicle comes with risks of depreciation and potential changes in tax legislation.

Key Recommendations:

• If you value prompt solutions and want to avoid unnecessary financial and tax obligations, choose rental.
• If you need a vehicle for permanent use and aim to optimize business expenses, consider purchasing with subsequent analysis of tax deductions and long-term costs.

Ultimately, the choice between renting and buying a vehicle in Kazakhstan in 2025 depends on your personal or business needs, financial capabilities, and willingness to shoulder the tax burden. Carefully evaluate all aspects to make an informed decision.