Construction of New Tashkent. Photo: Uzbek Presidential Press Service
Investors launching urban development projects worth $50 million or more in New Tashkent have been granted a package of tax exemptions and preferences. The new incentives were enacted by a November 10 decree signed by Uzbek President Shavkat Mirziyoyev, according to the Justice Ministry’s Telegram channel.
Under the document, the tax relief takes effect within a specialized legal regime founded on the principle of «the state as an investment partner.» Notably, companies undertaking large-scale construction ventures will be permitted to pay corporate income tax at a reduced 1% rate. However, this preferential rate applies solely to revenue generated from leasing or selling buildings constructed in New Tashkent.
The duration of the incentives directly correlates with the capital invested. Projects funded at $50 million or more qualify for five years of benefits, investments exceeding $100 million receive preferences for 10 years, and commitments over $500 million enjoy incentives for up to 15 years.
In addition, developers meeting the minimum investment threshold will be exempt from property and land taxes for 20 years.
The decree also exempts services procured by general contractors and lead engineering firms from foreign businesses not operating in Uzbekistan from value-added tax (VAT).
Through January 1, 2040, dividend income earned by investors from urban development projects will be exempt from all fiscal levies, provided the funds are reinvested in initiatives across Uzbekistan.
Simultaneously, a «regulatory sandbox» framework is being introduced across designated special zones—including New Tashkent and the Shirin district in Samarkand—to accelerate major real estate investments.
The administrative directorates overseeing these special development areas have received expanded powers, including:
👉 approving spatial and territorial development planning documents;
👉 establishing core structural specifications for facilities erected under investment programs;
👉 issuing project-specific technical requirements.
The presidential decree aims to provide comprehensive backing for urban development projects valued at $50 million or more, boosting Uzbekistan’s investment allure and tourism potential while dismantling bureaucratic hurdles for major developers.
