Creative Industries Park in Kyrgyzstan (CIP): Opportunities, Tax Incentives, and Business Prospects

In 2025, Kyrgyzstan continues to strengthen its position as an attractive jurisdiction for creative businesses through the establishment of the Creative Industries Park (CIP). This unique initiative, launched in 2023, became the world’s first tax regime specifically designed to support a wide range of creative sectors — from graphic design and marketing to film, fashion, and game development. CIP offers entrepreneurs and startups low taxes, minimal bureaucracy, and access to international markets, making it an ideal platform for business growth.

What is the Creative Industries Park?

CIP covers over 70 types of activities, including architecture, design, media, music, film, video production, marketing, game development, fashion, crafts, and event organization. The main goal of the park is to bring the creative sector out of the shadows, create jobs, boost exports of high-margin products, and increase Kyrgyzstan’s appeal to international investors and entrepreneurs.

A key feature of CIP is that it is not tied to a physical location — it is a virtual park, allowing residents to work from anywhere in the country or even remotely. As of May 2025, 76 residents are registered in CIP, including IT companies, architectural firms, marketing agencies, and design studios.

Benefits of CIP for Businesses

CIP offers unique advantages for companies and individual entrepreneurs, especially those in creative and digital industries. Key benefits include:

• Preferential tax regime: CIP residents are exempt from profit tax, VAT, and sales tax. Instead, they pay a turnover simplified tax:
  • 0.5% in 2023–2024,
  • 1% in 2025–2026,
  • 2% from 2027 onward.
    This is one of the lowest tax rates globally, particularly for creative sectors. Compared to the High Technology Park (HTP), which targets IT, CIP covers a broader range of activities.
• Reduced social contributions: Residents and their employees pay only 12% in social insurance contributions, lower than the standard 17.25%, significantly reducing payroll costs for large teams.
• 5% income tax for employees: Employees of CIP resident companies pay a reduced personal income tax rate of 5% instead of 10%, making such companies more attractive employers.
• No export requirement: Unlike HTP, CIP does not require export activity, allowing businesses like local media or architecture firms to work within the domestic market.
• Access to grants and investments: The Creative Industries Support Fund, established in March 2025, provides funding for startups and cultural projects. Its first initiatives supported a digital art festival and Kyrgyz participation in international forums.
• Simplified registration & minimal bureaucracy: Company registration takes 5–10 business days, and quarterly reporting is done via the e.gov.kg portal, minimizing the administrative burden.
• Support for international business: CIP is designed to serve foreign clients, especially within the EAEU (Russia, Kazakhstan, Belarus, Armenia). Double taxation agreements and lack of currency controls facilitate international operations.
• Residence permit option: Foreign entrepreneurs who register an IE or LLC under CIP may qualify for a residence permit of up to 5 years — an attractive option for relocation.

What Activities Qualify for CIP?

A list of 72 approved activities was adopted in December 2023. Key categories include:

• Design: Graphic, interior, industrial, and landscape design.
• Media and multimedia: Film, video production, animation, and social media content creation.
• Marketing and advertising: SMM, PR, and campaign development.
• Music and arts: Music production, visual and digital arts.
• Fashion: Clothing and accessory design, collection creation.
• Game development: PC and mobile game development, e-sports (IT firms often prefer HTP).
• Architecture and urbanism: Urban planning and architectural design.
• Education and coworking: Courses, creative spaces, and training centers.
• Tourism: Tour organization, route development, guide services.
• Events: Fashion shows, festivals, forums, and similar projects.

The full list is available at cip.kg. To register, at least 90% of a company’s revenue must come from these activities.

How to Become a CIP Resident

1. Register a Company
   Create an Individual Entrepreneur (IE) or LLC in Kyrgyzstan. Required:
   • Passport and taxpayer ID (obtained within 1–2 days).Founding documents (charter, resolution for LLC).Legal address (virtual office is allowed).Pay the registration fee.
   Registration takes 3–5 days and can be done online via e.gov.kg. Foreigners can register company remotely, or open a branch/representative office.
2. Apply to CIP
   Submit the application through cip.kg or to the CIP Directorate. Documents:
   • Residency application.
   • Business model and activity description.
   • Proof that 90% of revenue comes from creative fields.
   The Supervisory Board (2 government, 5 private sector reps) reviews the application.
3. Pay the Registration Fee
   Once approved, pay the membership fee (1% of revenue, with a minimum set by the Directorate).
4. Receive Residency Status
   You’ll get a certificate confirming residency and start receiving benefits. This takes 5–10 business days.

Taxes and Reporting

• Unified tax: 1% on revenue in 2025–2026, 2% from 2027.
• Employee income tax: 5%.
• Social contributions: 12% for residents and employees.
• CIP membership fee: 1% of revenue.

Reports:

• Quarterly turnover tax declarations (by the 20th of the following month).
• Compliance confirmation (on request).
• Zero reporting if no income.
• All reports are submitted online at salyk.kg in Russian.

Creative Industries Support Fund

Created in March 2025, this fund finances resident and cultural projects. Early support included the Micson Digital Art Festival and participation in the “Culture and Creative Economy” foresight forum. Grants are available for startups, making CIP attractive for new businesses.

Why CIP Appeals to Foreigners

• EAEU membership: Kyrgyzstan offers advantages for entrepreneurs from Russia, Belarus, Kazakhstan:
  • Double taxation treaties: Income earned in Kyrgyzstan is not taxed again if residency is certified.
  • Supported payment systems: Residents can use Payoneer, Wise, Russian acquirers (YooKassa, CloudPayments) via local banks like Demir Bank. PayPal not available for receiving payments.
  • Low costs: Office rent in Bishkek is $100–300/month; virtual offices cost $20–50. Cost of living is low.
  • Russian language: Officially recognized, removing language barriers for reporting and contracts.
  • Remote liquidation: Companies can be closed in 2–3 months without physical presence.

Outlook and Economic Impact

CIP already shows promise:

• Business legalization: Low taxes motivate businesses to go official, increasing jobs and tax revenue.
• Service exports: Residents work with clients from the EAEU, US, and Europe, boosting Kyrgyzstan’s export profile.
• Global recognition: Kyrgyzstan is the first country with such a regime for creatives, attracting investors and digital nomads.
• Festivals and events: Initiatives like the 2024 Create4 festival held in 36 locations in Kyrgyzstan and Tashkent foster community and tourism.

CIP is projected to boost the creative industry’s contribution to GDP to 5–7% by 2030, creating tens of thousands of jobs and enhancing international competitiveness.

Conclusion

The Creative Industries Park in Kyrgyzstan offers a unique opportunity for entrepreneurs in design, marketing, game development, fashion, media, and other creative fields. Contact us for remote company registration in Kyrgyzstan, tax support, and assistance with applying to CIP or HTP.