Uzbekistan has introduced a new legal framework that allows farmers and agricultural enterprises to use their lease rights to farmland as collateral when obtaining bank loans.

The regulation establishes the procedure for pledging lease rights to agricultural land as loan security. It enables lessees to use their leasehold interests to access credit resources more easily, strengthening investment potential and improving productivity in the agricultural sector.

Under the new rules, lease rights to agricultural land may be pledged to banks or other financial institutions as collateral without the consent of the lessor, provided that such an arrangement is permitted by law or by the lease agreement. The regulation sets out the mechanisms for formalizing pledges, the satisfaction of creditor claims, and the sale of pledged lease rights through open auction in cases of default.

At the same time, the regulation clearly defines cases where the pledge of lease rights is not permitted. Lease rights cannot be used as collateral if the land:

is subleased;

is under a lease agreement that has expired, been terminated, or is under dispute (including court proceedings, investigation, or inquiry);

is subject to contractual restrictions prohibiting pledge;

has unregistered lease rights or unregistered amendments to such rights;

contains unauthorized or illegally occupied plots; or

falls under other restrictions established by law.

The pledge is provided to the lending institution based on the lease term and the market value of the land plot. Importantly, the term of the land lease must exceed the loan term by at least five years, ensuring stability and minimizing credit risks for lenders.

Commercial banks and microfinance institutions are expected to adapt their internal procedures to reflect this new mechanism, facilitating access to financing for agricultural producers.

The reform aligns with Uzbekistan’s broader strategy to enhance land productivity, attract investment into the agricultural sector, and create favorable conditions for sustainable rural development.

Uzbekistan is introducing a new mechanism aimed at attracting foreign individuals and their families by offering a preferential personal taxation framework. According to a recently adopted presidential act, beginning from early 2026, foreign citizens will be able to obtain a special tax status granting exemption from personal income tax on income derived from sources outside Uzbekistan.

Scope and Purpose

The special tax regime is designed to enhance the country’s investment and human capital potential by encouraging skilled professionals, entrepreneurs, and investors to establish a tax presence in Uzbekistan. The regime provides a simplified process for recognizing foreign individuals as tax residents while allowing them to retain global income earned abroad without being subject to domestic taxation.

Eligibility Criteria

To qualify for the special tax status, a foreign citizen must meet two basic conditions:

Residence or tenancy - the individual must own or rent residential property within Uzbekistan; and

Physical presence - the individual must be physically present in the country for a cumulative period exceeding 30 calendar days within any continuous twelve-month period that begins or ends in the relevant tax year.

The regime is also extended to close family members of eligible foreign citizens, provided that a special fee is paid for each adult relative included under the regime.

Application Procedure

Applications for obtaining the special tax status will be submitted to a Commission on the Provision of the Special Tax Regime for Foreign Citizens through the Tax Committee. The necessary technical infrastructure is expected to be established by the end of the year preceding the introduction of the regime.

The Commission is required to review each application within five business days and issue a decision either approving or rejecting the request.

Financial Requirements

Upon receiving approval, the applicant must:

Pay a special fee of USD 50,000 for the primary applicant and USD 10,000 for each adult close relative included in the application; and

Open a financial account either in a specially authorized commercial bank in Uzbekistan or a crypto-wallet on a licensed cryptocurrency exchange operating in the country.

Funds transferred to these accounts or crypto-wallets will be subject to verification by the respective financial institutions to ensure the legality of their origin.

Registration and Validity

Foreign citizens and their family members who have paid the special fee are granted registration at their place of residence in Uzbekistan within one business day upon submission of the relevant request and proof of payment.

This registration will be valid for a period of up to five years, after which it may be renewed subject to applicable procedures and continued compliance with the established requirements.

Legal and Practical Implications

The introduction of this special tax regime marks a significant policy shift toward creating a favorable environment for foreign residents. By decoupling global income from domestic tax obligations, Uzbekistan positions itself as a competitive jurisdiction for professionals, entrepreneurs, and investors seeking regional residency options with simplified tax treatment.

At the same time, the requirement to maintain verified financial accounts within authorized institutions reinforces transparency and compliance with international standards on anti-money-laundering and counter-terrorism financing.

The regime’s design combining minimal physical presence requirements with substantial financial commitments reflects a deliberate balance between accessibility and fiscal responsibility. It provides foreign citizens with an opportunity to obtain a secure and legitimate tax residency status in Uzbekistan while contributing to the national economy through investment and financial engagement.

The Cabinet of Ministers has adopted a resolution establishing a comprehensive framework for the regulation, classification, and modernization of transport and logistics centers (TLCs) throughout Uzbekistan. This new framework aims to improve the efficiency, safety, and competitiveness of the logistics sector by introducing unified standards of infrastructure, operational capacity, and management oversight.

Establishment of a National Register and Rating System

All TLCs operating in the country will now be included in a special national register maintained by the competent authorities. Each center will be assigned a rating reflecting its level of compliance, sustainability, and performance.

The overall rating will be based on two components:

The rating system will thus serve both as a compliance mechanism and as a benchmark for determining eligibility for state support, partnership programs, or preferential treatment in logistics initiatives.

Standardization of Infrastructure and Equipment

The resolution introduces mandatory technical and infrastructural requirements for the operation of both regional and international TLCs, as well as for warehouses, container terminals, and dry ports.

The territory of each TLC must comply with sanitary, environmental, and urban planning standards.

Requirements extend to transport accessibility, storage capacity, safety systems, and technological equipment.

TLCs are expected to provide facilities for cargo handling, packaging, temporary storage, customs procedures, and intermodal transport connections.

The standards are designed to align domestic logistics infrastructure with international norms, enhancing the country’s role as a regional transit and trade hub.

Restrictions on Location and Land Use

The regulation imposes clear geographical and land-use limitations:

TLCs must be located outside residential areas, protected environmental zones, and agricultural lands.

The allocated land plots must be used exclusively for logistics purposes, prohibiting unrelated commercial or industrial activities on the site.

This approach aims to reduce environmental risks, prevent congestion in urban areas, and preserve agricultural resources.

Accessibility Requirements

Each TLC must ensure direct and efficient connectivity to the main national and regional transportation corridors:

The distance between a TLC and the nearest railway line, transport interchange, or national/international highway may not exceed three kilometers by a road suitable for heavy transport movement.

This ensures smooth integration with the national logistics network, reducing costs and time in cargo movement.

Functional Mandate of TLCs

Depending on their location and strategic importance, TLCs must be capable of performing dual logistical roles:

Distribution center - facilitating the delivery and redistribution of goods across regions and neighboring countries.

Consolidation center - enabling the collection, sorting, and aggregation of goods for export, transit, or further distribution. This dual function enhances the system’s flexibility and responsiveness to both domestic and international trade flows.

Compliance and Future Implications

The introduction of uniform standards represents a major shift toward a regulated and performance-based logistics environment in Uzbekistan.

Operators will need to undertake technical audits and legal due diligence to ensure compliance with new standards before registration.

Non-compliance may result in exclusion from the register, loss of rating, or restrictions on participation in logistics programs.

The rating mechanism is expected to influence access to financing, investment incentives, and government contracts, effectively linking operational quality with regulatory and financial outcomes.

Strategic Outlook

The reform positions Uzbekistan to:

Strengthen its regional transit potential and integrate with global supply chains.

Attract private investment in logistics infrastructure through transparency and predictability.

Promote sustainable and environmentally responsible development by enforcing location and infrastructure controls.

The document shall enter into force on January 10, 2026.