Tax on property income in Uzbekistan

Nonresident individuals are generally subject to Uzbek personal income tax on Uzbekistan-source income, including income derived from real estate situated in Uzbekistan.

Foreign citizens generally do not have unrestricted rights to acquire privately owned land in Uzbekistan.

However, citizens of countries included on the government's approved list can acquire certain newly constructed real-estate properties without obtaining an Uzbek residence permit, subject to statutory minimum property-value requirements.

Rental Income Tax

Rental income earned by a nonresident individual from real estate located in Uzbekistan is considered Uzbekistan-source income and is therefore taxable in Uzbekistan.

Rental income received by a nonresident individual is generally subject to personal income tax at a flat rate of 12%, withheld at source.

The 12% rate is generally calculated on the rental income payable under the rental agreement. For tax purposes, however, the rental amount cannot be lower than the applicable minimum rental rate established per square metre.

From 1 January 2026, the minimum rental rates used for tax purposes were increased by 7%.

For an ordinary nonresident property investor, the relevant headline rental income-tax rate is therefore 12% of gross taxable rental income, subject to any relief available under an applicable Double Taxation Agreement.

For a nonresident individual earning rental income from real estate situated in Uzbekistan, rental income is generally subject to 12% personal income tax withheld at source.

Annual gross rental income of $18,000, $72,000 and $144,000 therefore results in estimated annual income tax of $2,160, $8,640 and $17,280, respectively.

The effective income-tax burden is consequently 12% of gross rental income at all three levels, leaving approximately $15,840, $63,360 and $126,720 after income tax, respectively.

No standardized operating-expense deduction has been applied because the nonresident rental tax is generally calculated on the rental income payable under the rental agreement, rather than on net rental profit after expenses. The taxable rental amount may not be lower than the applicable statutory minimum rental rate established per square metre.

Personal Income Tax

Uzbekistan generally applies a flat 12% personal income-tax rate to ordinary taxable income, including employment income, rental income and capital gains.

Capital Gains Tax

Capital gains earned by a nonresident individual from the disposal of real estate located in Uzbekistan are generally subject to personal income tax at 12%.

The taxable capital gain is generally calculated as the difference between the property's selling price and its documented acquisition price.

Where documentation establishing the acquisition price is unavailable, the taxable base can instead be determined using the applicable statutory rules. In the case of immovable property, the inventory value can be relevant where the original acquisition cost cannot be established.

Accordingly, the 12% tax is generally imposed on the taxable capital gain rather than the property's entire gross selling price, provided that the taxpayer can substantiate the relevant acquisition cost.

Corporate Tax

The standard Uzbek Corporate Income Tax rate is 15%.

Uzbek resident companies are generally subject to corporate income tax on their taxable profits. A foreign company operating through a permanent establishment in Uzbekistan is generally subject to the same 15% corporate income-tax rate on profits attributable to that permanent establishment.

Taxable corporate profit is broadly determined as gross taxable income less qualifying deductible business expenses and applicable tax incentives.

Certain industries are subject to a higher 20% corporate income-tax rate, including commercial banks and certain other specified businesses.

A simplified turnover-tax regime is available to qualifying smaller businesses. The general turnover-tax rate is 4%, although different rates can apply depending on the activity and taxpayer.

Foreign companies earning Uzbekistan-source income without a permanent establishment can instead be subject to withholding tax. Under the domestic rules, rents and certain other income paid to a nonresident company are generally subject to 20% withholding tax, unless reduced or eliminated under an applicable tax treaty.

Capital gains realized by an Uzbek company are generally included in taxable corporate profits and subject to the normal corporate income-tax regime.

For a foreign company without a permanent establishment, a gain from the sale of Uzbek property is generally calculated as the selling price less the documented acquisition price and can be subject to 20% withholding tax as other Uzbekistan-source income.

Property Buying Costs and Taxes in Uzbekistan

Property Holding Tax

Uzbekistan imposes an annual Property Tax on qualifying real estate located in the country, including property owned by nonresident individuals.

For individuals, the applicable property-tax rate generally ranges from approximately 0.34% to 0.64%, depending on the type and characteristics of the property.

Certain unfinished construction can be subject to a higher 3% rate.

The taxable value is determined under Uzbekistan's property-tax valuation rules. From 1 January 2026, important changes were introduced to the valuation framework, including greater use of market-value principles for real estate.

Nonresident property owners can be required to calculate and pay their Uzbek property-tax liability directly.