Uzbekistan has adopted a formal procedure for granting a special tax regime to foreign citizens, creating a new framework aimed at attracting international investors, entrepreneurs and high-net-worth individuals.

The regime provides significant tax benefits, including exemption from personal income tax on income earned from sources outside Uzbekistan, subject to compliance with established requirements.

Key benefit of the special tax regime

The special tax regime exempts foreign citizens from paying Uzbek personal income tax on income generated outside Uzbekistan.

The initiative forms part of Uzbekistan's broader strategy to attract foreign capital, encourage long-term residency and strengthen the country's position as an international investment destination.

Eligibility requirements

Foreign citizens seeking access to the regime must apply through Public Service Centers or the Unified Portal of Interactive Public Services (EPIGU). Applications are reviewed by a dedicated Commission, with the Tax Committee serving as its working body.

Following approval, applicants must:

• open an account with an authorized commercial bank in Uzbekistan or a wallet with an authorized crypto exchange; and
• pay a special fee of USD 50,000.

The framework also permits participation of close family members, subject to payment of an additional fee of USD 10,000 per adult family member.

Tax residency rules

The regulation clarifies the tax residency status of individuals benefiting from the special regime.

A foreign citizen may be recognized as a tax resident of Uzbekistan if:

• they are physically present in Uzbekistan for more than 30 calendar days during any consecutive twelve-month period; and
• they own or lease residential property in Uzbekistan.

This creates a special residency framework distinct from traditional tax residency concepts applied in many jurisdictions.

Application and approval process

Applications are submitted electronically and reviewed by the Commission responsible for granting the special tax regime.

The process includes:

• review and registration of applications;
• verification of applicant eligibility;
• assessment of supporting documentation;
• approval, refusal, extension or early termination of the regime.

The Tax Committee administers the process and maintains the relevant information systems.

Banking, crypto and compliance requirements

Approved applicants may use either:

• a bank account opened with an authorized commercial bank; or
• a crypto wallet opened through an authorized crypto exchange in Uzbekistan.

Both banks and crypto exchanges must conduct anti-money laundering, counter-terrorist financing and sanctions-related compliance checks before accepting funds and servicing participants under the regime.

This feature makes the regime particularly notable as one of the few residency-linked tax programs expressly incorporating regulated crypto infrastructure.

Implications

The regime is likely to be of interest to:

• international investors;
• entrepreneurs and business owners;
• digital nomads and remote professionals;
• cryptocurrency investors;
• individuals seeking alternative tax residency options.

The combination of foreign-source income tax exemption, banking and crypto access, and simplified residency arrangements reflects Uzbekistan's growing focus on attracting globally mobile capital and talent.

The regulation entered into force on 22 May 2026.

Uzbekistan has introduced a pilot mechanism for determining customs value and calculating import customs duties for processed products released into free circulation after processing within the customs territory.

The new framework will apply on an experimental basis until 1 March 2027 and is aimed at supporting domestic manufacturing while improving customs administration for processing operations.

New approach to customs duty calculation

Under the new regulation, imported raw materials and components used for processing will be subject to import customs duties regardless of their country of origin.

At the same time, exemptions and preferences established by legislation may continue to apply to the processed finished products themselves.

The regulation specifically addresses situations where customs duties applicable to imported raw materials and components exceed duties applicable to the finished products manufactured from them.

Formation of special product list

A special interagency commission on cooperation with the World Trade Organization will prepare and approve a list of products for which customs duties on imported raw materials exceed customs duties on finished products.

The list will be updated regularly and approved by the commission every month.

Business entities may also submit proposals for inclusion of products through the Agency for Industrial Cooperation and Public Procurement.

To qualify for inclusion:

• production facilities must already exist in Uzbekistan or there must be confirmed plans for localization of production;
• production standards, calculations and technological processes must be economically justified through feasibility studies;
• processing norms and calculations must be properly substantiated.

Customs duty calculation mechanism

The regulation establishes a formula-based mechanism for calculating customs duties on processed products released into free circulation.

The customs duty amount is calculated based on:

• the customs value of imported raw materials or components; and
• the customs duty rate applicable to the processed finished products.

The regulation also requires customs brokers or declarants to reflect the calculations in customs declarations in accordance with prescribed procedures.

Customs authorities will verify:

• correctness of customs valuation;
• proper application of customs duty rates;
• compliance of calculations with regulatory requirements.

Illustrative example included in regulation

The regulation includes a practical example involving LED lamp production.

The example demonstrates that importing individual components for local production may result in higher cumulative customs duties compared to direct import of finished LED lamps.

The mechanism is intended to address such disparities and support domestic manufacturing and industrial localization.

Implications

The new framework is particularly relevant for:

• manufacturing companies;
• industrial localization projects;
• customs brokers and logistics operators;
• importers using processing customs regimes;
• foreign investors involved in production activities in Uzbekistan.

The pilot mechanism may significantly affect customs cost structures for manufacturing businesses relying on imported components and raw materials.

The regulation entered into force on 21 May 2026 and will apply on an experimental basis until 1 March 2027.

Uzbekistan has introduced a new digital procedure allowing land lease agreements to be extended online through the Unified Portal of Interactive Public Services (EPIGU) and Public Service Centers.

The new framework establishes a formal administrative procedure for extension of land lease agreements and is aimed at simplifying land administration, reducing bureaucracy and expanding digital public services.

Scope of the new procedure

The regulation applies to land lease agreements concluded with district and city khokimiyats involving:

• land plots leased by individuals or legal entities where the lease term is approaching expiration;
• extension of lease rights for land plots already held on a lease basis.

The framework applies to both individuals and corporate land users.

At the same time, the procedure does not apply to:

• land plots used by state authorities on a permanent use basis;
• land located within the forest fund;
• land plots situated in special economic or industrial zones.

Mandatory electronic application process

Under the new rules, tenants must submit applications for lease extension electronically no later than three months before expiration of the existing lease agreement.

Applications may be submitted through:

• Public Service Centers; or
• the Unified Portal of Interactive Public Services (EPIGU).

Applications filed through EPIGU are processed fully electronically.

The regulation also introduces standardized electronic application forms and integrated interagency information exchange mechanisms involving cadastral authorities, tax authorities and local administrations.

Automated verification and digital coordination

A notable feature of the reform is the introduction of automated digital verification procedures.

Authorities may electronically verify:

• cadastral registration data;
• tax liabilities and arrears;
• existence of disputes or violations relating to land use;
• compliance with lease obligations;
• intended use of the land plot.

The regulation limits requests for duplicate documents where information is already available through integrated state databases.

Interagency coordination is carried out through digital platforms and integrated information systems.

Grounds for refusal

The framework establishes formal grounds on which extension requests may be denied.

Among other things, refusal may occur where:

• the tenant violated land use requirements;
• false or incomplete information was submitted;
• tax or lease payment obligations remain outstanding;
• the land plot is being used contrary to its designated purpose;
• there are unresolved disputes relating to the land plot.

Applicants are also granted the right to challenge actions or decisions of state authorities and responsible officials through established complaint procedures.

Digitalization of land administration

The reform forms part of Uzbekistan’s broader policy aimed at digitalization of public services and simplification of administrative procedures.

The regulation specifically provides for:

• electronic notifications and approvals;
• automated information exchange between authorities;
• reduced paperwork and in-person interaction;
• digital monitoring of applications and processing stages.

The procedure is expected to improve efficiency and transparency in management of land lease relations.

Implications

The new framework is particularly important for:

• agricultural land users;
• industrial and commercial land tenants;
• real estate developers;
• investors operating under long-term land lease arrangements.

The changes are expected to reduce administrative burdens and improve predictability of lease extension procedures.

The regulation entered into force on 19 May 2026.