NEWS

Uzbekistan’s Legislative Chamber of the Oliy Majlis has approved a bill introducing additional tax incentives for foreign nationals and measures to support vocational education. The bill is aimed at strengthening the country’s investment appeal and encouraging foreign investment. The document has now been submitted to the Senate for review.

Under the bill, participants in the special tax regime will be exempt from tax on income earned outside Uzbekistan. In addition, until January 1, 2030, the social tax rate will be reduced from 12% to 6% for employees undergoing training under dual education programs at industrial enterprises.

The bill complements the special tax regime for foreign nationals introduced by Presidential Decree No. UP-180 dated October 4, 2025, with the main provisions taking effect on January 1, 2026. Under the current rules, foreign nationals may qualify for an exemption from tax on foreign-source income if they meet a number of requirements.

These include payment of a special fee of USD 50,000 for the applicant and USD 10,000 for each adult family member, ownership or lease of property in Uzbekistan, opening an account with an authorized Uzbek bank or a wallet with an authorized crypto exchange, and spending more than 30 days in Uzbekistan within a 12-month period.

In May 2026, the Cabinet of Ministers of Uzbekistan approved the procedure for obtaining the special tax regime. Applications can be submitted through public service centers, the Unified Interactive Public Services Portal or the Electronic Tax Services Portal. Applicants must provide a copy of their foreign passport and documents confirming their period of stay in Uzbekistan.

The Tax Committee reviews applications within one working day and forwards them to the Commission responsible for granting the special tax regime. The Commission considers applications within three working days, although this period may be extended if additional information is required. If approved, the applicant pays the required fee through an authorized bank account or a wallet with an authorized crypto exchange. The funds are credited after compliance procedures and risk assessments aimed at preventing the legalization of illicit proceeds.

The amendments will help reduce the tax burden on foreign nationals. Together with other ongoing initiatives, they may strengthen Uzbekistan’s investment appeal and create more favorable conditions for attracting high-net-worth individuals and venture capital.

The changes come as Uzbekistan continues broader economic reforms. According to the World Bank, reforms in logistics, tourism and pharmaceuticals could help the country attract between USD 5.2 billion and USD 6.4 billion in private investment and create more than 300,000 direct and indirect jobs over the medium term.

At the same time, the relatively flexible conditions of the special tax regime, including the requirement to spend just over 30 days a year in Uzbekistan, may attract not only genuine investors but also individuals seeking to use these rules to avoid taxation in their home countries.