The Constitution (1992) states that foreign citizens, legal persons and stateless persons may lease land for a specified period of time under the conditions and procedures laid out in law. The Parliament of Mongolia passed the new Land Law in 2002, that was an important step towards ownership and use of land by citizens and organizations, and regulation of relations connected with land ownership and use. The newly approved Law on Land provides the authority to enter into contracts on land lease with foreign citizens, legal persons, governments and international organizations to the Government of Mongolia. In general, land may be leased for at least 15 years and for up to 60 years with a single extension of up to 40 years. In other words, the maximum duration of a lease in any given case is 100 years.
Land Ownership:
Principles of land ownership by citizens of Mongolia, types and sizes of land to be owned by Mongolian citizens, the power of the local administrations and the procedures for enacting land ownership are regulated by the Law on Land Ownership by Citizens of Mongolia. The Law on Mongolian Citizens' Ownership of Land (came into effect in May 1, 2003) restricts the ownership to Mongolian nationals. The same restriction applies to foreign nationals who are married to Mongolian citizens. 0.9 per cent of the total area will be privately owned. The privatisation of land for private use in urban areas (0.01 per cent of total land) will be done freely to all Mongolian citizens. Families in capital city are entitled to 0.07 ha, aimag centres - 0.35 ha and soum centres -0.5 ha of land. Subsequent acquisitions of land will require payment. Individuals that possess land on leasehold terms (including farming) have the pre-emptive right to purchase it from the state.
