The concept of a minimum rental fee for real estate has been part of Tajikistan's legislation since January 1, 2023. Renters believe that the government's decision is driving an increase in already high rental rates.
For 2025, the minimum monthly rent per square meter of real estate is set in the state budget as follows:
· Residential properties and auxiliary buildings: 20% of the calculation indicator.
· Properties used for production purposes: 30% of the calculation indicator.
· Properties used for trade, catering, or service-related activities: 60% of the calculation indicator.
· Properties used for other activities: 45% of the calculation indicator.
The calculation indicator for 2025 will rise 4.2%, from 72.00 to 75.00 somonis. As a result, starting January 1, the minimum monthly rent per square meter will be:
· Residential properties: 15 somonis (currently 14.4 somonis),
· Production properties: 22.5 somonis (currently 21.6 somonis),
· Trade and catering properties: 45 somonis (currently 43.2 somonis),
· Other properties: 33.75 somonis (currently 32.4 somonis).
Regional and zoning coefficients
To determine rent based on location, regional coefficients specified in the Tax Code are applied.
In Dushanbe (coefficient 1.0), the minimum rent remains unchanged. In other regions, rent decreases by 20% to 90%, depending on the coefficient.
For example, the coefficient for Khujand, Bokhtar, and Kulob is set at 0.8, making the minimum rent for residential properties in these cities 12 somonis per square meter, 20% less than in Dushanbe.
Further adjustments are based on specific zones:
· Central streets and administrative centers: Coefficient 1.0.
· Towns and villages: Coefficient 0.8.
· Other areas: Coefficient 0.6.
Purpose and controversy
The minimum rental fee was introduced to address tax evasion by landlords, who often underreport rental income in contracts. This regulation applies exclusively to private property, as state property rental is governed by the "Law on Leasing in RT."
While landlords must now adhere to a minimum rental rate, there are no restrictions on setting higher rents. The policy has drawn criticism from both landlords and tenants, who argue that it inflates rents and imposes burdens on renters.
Independent experts also view government intervention in private property pricing as inappropriate in a market economy, where supply and demand should dictate pricing.
