Published on and written by Cyril Jarnias
Uzbekistan’s appeal to foreign investors is no longer anecdotal. GDP growth around 6%, a surge in foreign direct investment, giant urban projects like “New Tashkent”, a still affordable real estate market, and solid rental yields: the country is gradually establishing itself as one of the most dynamic markets in Central Asia. However, buying property as a foreigner in Uzbekistan remains highly regulated, with complex rules on land, investment thresholds to obtain a residence permit, and mandatory notarization and cadastral registration.
Real estate purchases by foreigners in Uzbekistan are governed by a specific law. It requires a minimum investment, involves precise administrative procedures, and is subject to taxes. Local financing is limited, and it is crucial to anticipate certain legal and practical risks.
Understanding the general framework: a booming but highly regulated market
Uzbekistan is one of the most dynamic real estate markets in the region. The country’s GDP is around 82 billion dollars with annual growth between 5.5% and 6.5%, driven by rapid urbanization, a growing middle class, and major infrastructure programs. Real estate transactions increased by over 10% in the first half of 2025, notably due to the growth of mortgage lending and housing investments.
The government has implemented reforms to open the market to foreign investors, protect their rights, and clarify the rules. The Investment Law notably guarantees investor protection, the right to repatriate profits, and legal stability, although the regulatory framework is still evolving.
However, this openness comes with very strict regulation of land rights: land belongs to the state, direct ownership of soil by foreigners is prohibited, and only ownership of buildings and usage rights is possible. To invest, one must therefore accept a different logic from “full ownership” as known in Europe or North America.
Land vs. building: a key principle to understand
Everything in Uzbekistan rests on an essential distinction:
Under the Constitution and the Land Code, land is state property. On the other hand, buildings and structures (apartments, houses, buildings, offices, hotels) can be held in full ownership by individuals or companies, including foreign ones.
Concretely, a foreign investor can buy an apartment, commercial premises, a building, or a hotel, but the underlying land remains leased from the state via a long-term lease, or made available under a right of use. This logic is at the heart of the system and is found at every stage of the purchase process.
What foreigners can (and cannot) buy
Reforms have significantly expanded what a non-resident can buy, but restrictions remain numerous, particularly on land and certain sensitive areas.
Properties generally accessible to foreigners
Foreigners, whether individuals or companies, can in principle acquire:
– Apartments in buildings, especially in urban areas designated as eligible for foreigners.
– Houses and villas built on land leased from the state.
– Commercial properties (offices, shops, hotels, industrial premises) built on leased land.
Real estate transactions conducted by foreigners in Uzbekistan primarily involve apartments and commercial properties. These purchases are concentrated in major cities, notably Tashkent, Samarkand, and Bukhara, and often concern new construction projects or residential complexes with management.
Major restrictions on land ownership
The principle is clear: only Uzbek citizens or entities can own land. For foreigners:
– Direct ownership of land is prohibited, including for foreign companies.
– Foreigners can obtain usage rights in the form of long-term leases, with terms that can go up to 49 or 99 years depending on the purpose (residential, commercial, agricultural).
– Agricultural land, border areas, strategic or ecologically sensitive lands are particularly protected and, in practice, closed to foreign ownership.
Foreign companies wishing to develop major projects, such as a logistics center, factory, or hotel complex, must usually create a local entity (most often an LLC or a joint venture). This structure is necessary to hold the associated long-term land leases for this type of investment.
Areas and sectors with particular restrictions
Some areas are more sensitive than others:
– Protected historical areas (old towns of Samarkand, Bukhara, Khiva, etc.) are subject to stricter rules, with special permits for work, architectural compliance checks, and sometimes acquisition restrictions.
– Strategic regions (borders, critical infrastructure, defense areas, etc.) may require additional permits or be closed to foreign investors.
– In some sectors deemed strategic (airlines, railways, energy production, media, part of the banking sector), foreign participation is capped or subject to approval.
Investment thresholds and links with residence permits
A specific feature of Uzbekistan is linking foreign property access with investment thresholds and, in some cases, temporary or permanent residence rights.
Tashkent: a separate, more demanding regime
In Tashkent, the capital where land pressure is strongest, the regime is particularly regulated.
As a general rule, for a foreigner to be able to buy in Tashkent:
– They must hold a residence permit or local identity card.
– They must be permanently registered in Tashkent or its region.
– They must have lived or worked there for at least three years.
– The purchase must be for a new building worth at least 3,300 BCV, approximately 89,000 USD, paid through the banking system.
Alongside this basic regime, several special procedures relax the rules for certain nationals under the condition of investment.
Investing without an initial residence permit: the investment threshold route
Several presidential decrees and Cabinet resolutions have created separate regimes, depending on the buyer’s country of origin and the amount invested.
Over 100 states have the right to purchase new construction projects under conditions, without a prior residence permit.
– In Tashkent and Samarkand:
– Minimum of approximately 150,000 USD for a property under construction.
– Minimum of approximately 180,000 USD for a completed property.
– In other regions:
– Approximately 70,000 USD for a property under construction.
– Approximately 85,000 USD for a completed property.
This procedure allows purchase, but does not automatically grant the right to a residence permit or permanent registration. It is a pathway to ownership, not a “golden visa” per se.
A second category of countries benefits from a regime where real estate investment becomes the basis for obtaining a residence permit. In this case, higher thresholds apply:
– Tashkent city and region: Minimum 300,000 USD investment (recently lowered from 400,000 USD).
– Samarkand, Bukhara, Namangan, Andijan, Fergana, Khorezm: Minimum 200,000 USD.
– Republic of Karakalpakstan and other regions: Minimum 100,000 USD.
When specific investment thresholds are met in designated regions, the acquisition of real estate can serve as the basis for a residence permit application. This permit is typically granted for an initial period of three to five years and is renewable. An essential condition is that the real estate must be legally registered in the investor’s name.
Special pathway: the IT Visa
Holders of an IT Visa – a status intended for digital professionals and investors – benefit from very favorable treatment:
– They can buy real estate without a minimum value threshold.
– They do not need to hold a prior residence permit to purchase.
– The IT Visa, valid for up to three years and renewable, also allows application of a special tax regime, often more attractive.
This scheme is clearly designed to attract start-ups, freelancers, and technology companies to Uzbekistan.
Temporary residence via real estate
Beyond these regimes, a more general mechanism allows foreigners who have purchased a property worth at least 100,000 USD in certain areas (notably Tashkent and Samarkand) to apply for a temporary residence permit valid for up to three years, renewable. Here again, the essential condition is that the property is in the investor’s name in the official registers.
Step by step: the purchase process for a foreigner
Real estate purchase in Uzbekistan follows a relatively classic scheme: property selection, checks, preliminary contract, notarization, payment, cadastral registration. But each step is heavily regulated, with a central role for the notary and the land registry.
1. Search and property selection
Foreigners typically use a combination of channels:
– Online portals like Uybor.uz or OLX.uz.
– Local real estate agencies (e.g., CentralAsia, Tashkent Estate, Uylar Sales).
– Developers for new projects (Murad Buildings, Golden House, Akfa, NRG, BI Group, etc.).
– Public platforms like E-ijro for auctions.
During visits, it is advisable to plan several days per city and, if necessary, to hire a translator if one does not speak Russian or Uzbek. It is important to closely check the condition of common areas, utilities (heating, water, electricity), seismic compliance (critical in Central Asia), and construction quality, especially in buildings from the Soviet era.
Indicative price ranges
Prices vary significantly depending on the city, neighborhood (center or outskirts), property type (old, new, luxury), and project standard.
| City / Segment | Indicative price per m² (USD or equivalent) |
|---|---|
| Tashkent – new apartments | ~700 to 1,200 USD/m² |
| Tashkent – resale market | ~400 to 800 USD/m² |
| Tashkent – center (Unrenovated Soviet) | ~650 to 800 USD/m² |
| Tashkent City / luxury “box” | ~1,500 to 2,000 USD/m² |
| Samarkand – houses / guesthouses | ~300 to 600 USD/m² |
| Bukhara – renovated historic houses | ~500 to 1,000 USD/m² |
| Khiva – small hotels | ~150,000 to 400,000 USD per property |
These order-of-magnitude figures highlight an important point: despite the recent price increase (particularly in Tashkent, where the per-square-meter price rose by 10 to 15% per year between 2020 and 2023), Uzbekistan remains one of the most affordable markets in the region for foreign capital.
2. Preliminary checks (due diligence)
Due diligence is absolutely crucial in a legal system still evolving, with limited transparency and a cadastre undergoing digitalization.
Legally, checks primarily focus on: compliance rules, contractual obligations, and personal data protection.
Before a real estate purchase, several legal and technical checks are crucial. These notably include: verifying the property title in the cadastre; examining the mortgage situation (mortgages, easements, disputes); ensuring the physical description of the property (area, layout) matches official documents; verifying the legality of work performed (extensions, transformations); and confirming the seller’s right to alienate the property (full ownership, spouse consent, etc.). These steps secure the transaction and avoid future litigation.
On a technical level, it is recommended to have inspections of:
– The structure (cracks, stability, seismic compliance).
– Utilities (water, electricity, gas, heating, drainage).
– Common areas and management by the condominium or management company.
– The immediate environment (nuisances, air quality, flood risks, etc.).
Specialized firms can perform more financial analysis: market comparison, rent estimation, net profitability calculation, maintenance cost projection, exchange risk study.
3. Negotiation and preliminary agreement
Negotiation is part of the business culture. Listed prices are often inflated, even more so when the seller knows they are dealing with a foreigner.
In many cases, buyer and seller sign a preliminary agreement which sets:
– The agreed price.
– The payment schedule.
– The documents to provide.
– The validity period of the offer.
– The possible security deposit (generally 10 to 20% of the price).
This phase allows defining and validating the key elements that will appear in the final contract. These notably include suspensive conditions (such as obtaining financing or official authorization, or regularizing a cadastral document), penalties in case of agreement breach, and the allocation of costs between the parties.
Depending on the property type, location, and buyer profile, specific approvals may be required:
– Approval certificate from the State Committee for Land Resources, Geodesy, Cartography and State Cadastre for certain purchases involving real rights on land.
– Validation by the Investment Committee for large-scale projects or when the purchase is part of an official foreign investment scheme.
– Additional permissions for strategic or protected areas.
These steps are particularly important for foreign companies or commercial projects of a certain size.
5. Sale contract and notarization
The sale contract must be concluded in writing and executed before a notary. This is a mandatory step, regulated by several government resolutions.
The contract must notably specify: what each party is required to do.
– Full identification of the parties (passports, TIN, status).
– Exact description of the property (address, area, cadastral number, type of right).
– The sale price and payment method (bank transfer, payment schedule).
– The date and terms of transfer of possession.
– The seller’s declarations on the absence of debts, undisclosed easements, or disputes.
– Penalties and termination conditions.
Notaries use an electronic system (“Notary“) which allows them to:
– Check debts and encumbrances on the property.
– Transmit directly the necessary data to the cadastre for transaction registration.
This digitalization reduces the risk of errors and speeds up the time between signing and registration in the register.
6. Payment and transfer of ownership
Payments between parties must be made non-cash, through the banking system. Two main schemes exist:
A foreign buyer can proceed in two ways to pay a local seller. The first method involves making a direct wire transfer from a bank account abroad to the seller’s account in Uzbekistan. The second method involves the buyer first opening a bank account in Uzbekistan, transferring their funds there, and then making the payment to the seller from this local account.
Banks typically request:
– Proof of identity and status (passport, visa or residence permit, registration of residence).
– Proof of source of funds (bank statements, contracts, etc.), especially for large amounts, under anti-money laundering logic.
The acceptance and transfer deed of the property is then established, marking the effective moment when possession is handed over to the buyer, even though the right of ownership only becomes fully enforceable after official registration.
7. Registration with the cadastre: the step that “makes” the owner
Registration with the State Committee for Land Resources, Geodesy, Cartography and State Cadastre is mandatory for the transfer of ownership to be legally recognized.
The main characteristics of this step are:
– Filing a dossier including the notarized contract, proof of payment, identity documents, and possibly technical documents (technical passport, compliance certificates, etc.).
– Payment of a state fee of moderate amount (generally between 1.25 and 3 Base Calculation Values, i.e., a few dozen dollars).
– A processing time generally of 2 to 3 business days for housing, after which an extract from the rights register is issued, serving as proof of ownership.
Without this registration, the transaction does not have full effect vis-à-vis third parties. It is therefore the legal completion of the process.
Transaction costs, taxes, and taxation
Investing in Uzbekistan involves mastering not only the acquisition rules but also the fiscal and para-fiscal cost of the operation, as well as future taxation of rental income and capital gains.
Purchase costs
Several fees are added to the acquisition price:
| Cost item | Order of magnitude |
|---|---|
| Property transfer tax | Approximately 2% of the price |
| Notary + registration fees | Approximately 1 to 1.5% of the price |
| Attorney fees | Approximately 1 to 2% of the price (variable) |
| Translation services | ~200 to 500 USD |
| Technical fees (inventory bureau, etc.) | ~100 to 300 USD |
| VAT on new constructions | 12 to 15% (often included in the price) |
To these one-time costs are added agency commissions (2 to 3% generally, most often the seller’s responsibility, but this should be checked in the contract).
Holding taxation: property tax and land tax
All property owners – including foreigners – are subject to the annual property tax:
– The rate varies depending on the size and type of property (residential or not), generally between 0.23% and 2% of the cadastral value.
– The cadastral value used for calculation cannot be less than 42 million soums.
– Payment is made in two installments, before April 15 and October 15 of the year.
This is possibly supplemented by a land tax for holders of real rights on a plot (ownership or long-term lease):
The amount of land tax on undeveloped land ranges from 191.8 to 1,193.6 soums per square meter depending on the region.
Rental income and capital gains: taxation of non-residents
Non-resident foreigners are taxed only on their income from Uzbek sources.
For rental income:
– Non-resident individuals are generally taxed at a rate of 20% on rental income received.
– Tax residents (foreigners who have stayed more than 183 days or meet certain criteria) are taxed at 12% on this income.
For capital gains (resale of property with profit):
Capital gains on cryptocurrencies are treated as ordinary income. For non-tax residents, the tax rate is 20%. For tax residents, the rate is 12%. An exemption for holding over 36 months may apply to certain residents, but it is not accessible to non-resident foreigners according to recent texts.
The existence of double taxation treaties may, in some cases, allow reducing this burden, avoiding double taxation, or benefiting from a tax credit in the investor’s country of residence.
New special tax regime for certain foreigners
A scheme announced from 2026 onwards provides that a foreigner can become a tax resident in Uzbekistan while being completely exempt from tax on their foreign-source income, subject to:
– Paying a special one-time fee of 50,000 USD.
– Opening an account in an Uzbek bank or a crypto wallet on a licensed platform.
– Spending at least 30 days per year in the country.
– Renting or buying housing in Uzbekistan.
This mechanism targets a clientele of entrepreneurs, investors, and mobile/IT profiles, and further strengthens the role of real estate as an economic gateway to the country.
Bank financing: possible, but demanding
Local mortgage lending is developing rapidly, but conditions for foreigners remain stricter than for residents.
Local mortgages
Some banks – including foreign-owned institutions like Ziraat Bank – offer mortgage loans to non-residents:
The personal contribution required for a mortgage loan in Uzbekistan often represents 25 to 40% of the property price.
The financed property generally serves as mortgage collateral. Insurance may be imposed, sometimes with high premiums (coverage at 125% of the loan amount is mentioned in some products).
Alternatives to local financing
Faced with high local interest rates and administrative requirements, many foreign investors prefer:
– Using equity.
– Resorting to financing in their home country (mortgage on another property, personal loan, refinancing).
– Negotiating staged payment plans directly with developers (30 to 50% down payment, then payments over 1 to 3 years), a form of “developer financing” quite common in new projects.
The financing choice must also consider exchange rate risk: the Uzbek soum remains volatile, even though the liberalization of exchange rates since 2017 has made operations more transparent.
Purchase via local company: a key option for large projects
For investors targeting large-scale commercial projects (office building, shopping center, warehouse, industrial park, hotel), it is rarely optimal – and sometimes impossible – to buy directly as a foreign individual.
The preferred route is then to establish a local company:
To create a standard LLC (OOO), there is no nationality requirement for partners nor a specific legal minimum capital. For a joint venture LLC (SP OOO), a minimum of 15% foreign participation is required, with a minimum capital of approximately 400 million soums. For a foreign enterprise LLC (IP OOO), capital must be 100% foreign, with a minimum capital also of approximately 400 million soums.
These structures enable: to allow effective interactions and manage resources optimally.
– To hold long-term land leases.
– To operate commercial activities (rental, hospitality, industry).
– To benefit, beyond certain investment amounts (5 million dollars), from preferential tax regimes for a period of up to 10 years.
Creating a company involves obtaining a Personal Identification Number (PINFL) for the founder and director, an electronic signature for online procedures, a legal address with a cadastral number, opening bank accounts, etc.
Management and exit: thinking long-term
Buying a property is a first step. One must then anticipate daily management and the exit strategy.
Rental yields: a still attractive market
Gross yields are generally higher than in Western Europe, notably:
– Tashkent center: 6 to 8% per year for long-term rentals, sometimes up to 8 to 11% depending on the segment.
– Suburbs or other cities: potentially 8 to 12%.
– Short-term rentals in tourist areas (Samarkand, Bukhara): 10 to 15% depending on occupancy.
But these figures must be nuanced by:
– Management and maintenance costs that can reach up to 30% of rental income.
– Potential vacancy periods, especially outside regional capitals.
– Exchange rate risks for investors whose reference currency is the euro or dollar.
Percentage of collected rent that property management companies charge for their full services.
Exit strategies
Several options are available to the investor:
– Outright sale on the local market, with an average time of 2 to 4 months between listing and finalization.
– Exchange or reinvestment in another real estate project (e.g., moving from an apartment to a small hotel).
– Family transmission, possibly via an optimized holding structure (company, trust, etc.), ensuring compatibility with Uzbek inheritance law and the law of the country of origin.
Historical market performance shows an acceleration in appreciation: before 2017, prices increased by 1 to 3% per year, compared to 9 to 12% in recent years in certain segments, a sign of a market in a catch-up phase.
Main risks and countermeasures
Uzbekistan offers very interesting potential, but it is not a market without risks. Among recurring challenges:
Real estate investment in Uzbekistan presents several major challenges: high regulatory risk due to rapidly evolving laws (decrees, resolutions) impacting ownership, investments, and taxation; complexity of land rights, notably the distinction between building ownership and land lease; limited transparency despite digitalization, making cadastral verification difficult; exchange risk linked to soum volatility; variable construction quality depending on developers; and significant linguistic (Russian, Uzbek) and cultural barriers.
To address them, best practices are known:
For a secure and effective foreign real estate investment, it is recommended to collaborate with a local law firm experienced in real estate and foreign investment. Prioritize recognized developers and licensed agencies, systematically checking their references and track record. Demand complete cadastral verifications and written confirmations from authorities in case of complex property situations. Diversify your investments to avoid concentrating all your capital on a single project or city. Maintain a liquidity cushion to cover rental vacancy periods, increased charges, or unforeseen repairs. Finally, stay informed of regulatory developments, notably on investment thresholds, residence regimes, and tax changes.
Conclusion: a promising market for well-prepared foreigners
Buying real estate in Uzbekistan as a foreigner is neither impossible nor reserved for an initiated elite, but it requires mastering a specific legal and administrative environment. The key is to understand that one is primarily buying a building and a land usage right, in a country banking on foreign investment to accelerate its economic transformation.
To take advantage of the Uzbek real estate market, characterized by low prices, solid rental yields, and strong growth, an investor must accept an emerging market logic, be accompanied by local professionals, and follow a rigorous process including due diligence, notarization, registration, and tax compliance. Advantages also include real estate-linked residence programs and geographical diversification away from saturated markets.
Provided one scrupulously respects the purchase process and keeps a watchful eye on regulatory evolution, access to property in Uzbekistan can become a powerful lever in an international wealth strategy.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
