Tashkent, Uzbekistan (UzDaily.com) -- For Uzbekistan, at the present stage of economic reforms, one of the priority tasks is to increase the role of private property in the economy, to strengthen guarantees for the rights of owners.

With the adoption of the Law of the Republic of Uzbekistan "On the privatization of non-agricultural land plots", the institution of private ownership of non-agricultural land plots was introduced, which is the basis for improving the existing land relations and the formation of the land market in Uzbekistan.

In order to implement the adopted Law and create effective mechanisms for the privatization of land plots, in February of this year, a resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 71 was adopted.

When developing land privatization mechanisms, the results of the legal experiment conducted in 2020-2021 on land privatization in Syrdarya region, as well as the proposals and recommendations of experts from the World Bank, the Asian Development Bank and other international financial institutions, were taken into account.

It should be noted that not all land plots can be subject to privatization. For example, land plots on which mineral deposits are located, occupied and adjacent to apartment buildings, as well as land plots that are part of nature protection, health, recreational, historical and cultural lands, as well as lands of forest and water funds are not subject to privatization.

It is also not allowed to privatize land plots by foreign citizens, stateless persons, foreign legal entities and enterprises with foreign investments.

Depending on the status of the land plot (free or not free land), privatization is carried out in two forms:

redemption by legal entities and citizens of the Republic of Uzbekistan of land plots belonging to them on the basis of the rights of permanent use (possession), lifetime inheritable possession or lease;

purchase of a free land plot through an electronic online auction.

The redemption of land plots is carried out by submitting an application for the provision of public services for the privatization of a land plot in person through the Public Service Centers or remotely through the Unified Portal of Interactive Public Services. For the provision of public services, a fee of 10% of the base settlement amount established on the day of application is charged.

Received applications are considered by district (city) branches of the Chamber of State Cadastres within 5 and construction departments within 3 working days. Based on the results of consideration of applications, appropriate notifications with positive or negative decisions are sent to the applicants.

In case of a positive decision, the applicant is invited to pay the redemption value of the land plot to be privatized within 10 working days.

It should be noted that the redemption value of a privatized land plot is calculated based on the 20-fold base rate of land tax, taking into account the costs of registering the ownership of the land plot and the costs of preparing a topographic plan (if necessary).

For example, in the city of Tashkent, 4 acres of land, depending on the tax zone, will cost citizens of the Republic of Uzbekistan from 4.3 to 11 million soums, legal entities - from 37.4 to 177.4 million soums. In Samarkand, the purchase of a land plot of 4 acres for an individual residential building will amount to 2.9 million soums, and for legal entities - 29.4 million soums.

After the timely and full payment of the redemption value in the name of the applicant, a state warrant for the ownership of the land plot is automatically issued and within 2 working days the registration of ownership is carried out in the prescribed manner.

The grounds for refusal to privatize a land plot are:

lack of grounds for the privatization of land plots provided for by the legislation on the privatization of land plots.

the presence in the approved general plans of settlements, projects of detailed planning of parts of the settlement and other urban planning documents of information that directly prevents the privatization of land plots;

availability of decisions of the Jokargy Kenes of the Republic of Karakalpakstan, Kengashes of people’s deputies of the regions and the city of Tashkent on the seizure of land for public needs, taken before the application was submitted;

the presence of pending legal proceedings in relation to the privatized land plot;

the presence of a ban or arrest imposed on real estate objects located on the land plot being privatized;

the presence of a ban on the sale or other alienation of the privatized land plot; 

detection of false, contradictory or distorted information in the application; 

non-fulfillment or incomplete fulfillment of payment of the redemption value of the privatized land plot.

If the reasons that served as the basis for the refusal to privatize the land plot are eliminated, the applicant has the right to re-apply without paying the fee for the provision of public services within one month from the date of receipt of the refusal.

The second form of land privatization is the purchase of vacant land through an electronic online auction. Privatization of vacant land plots is carried out through the E-AUKSION electronic trading platform, which provides a transparent process and equal access to the auction for all potential buyers.

On this electronic trading platform, vacant plots are displayed both for entrepreneurial activity and for individual housing construction, indicating the starting price, area, as well as all conditions for the use of the land plot. It is important to note that land plots are put up for auction without establishing investment or other obligations that limit the free disposal of private property.

It should be noted that when privatizing a land plot at auction, it is possible to pay its cost in installments within 3 years.

The funds received from the privatization of land plots will be directed to the construction and reconstruction of engineering and communication infrastructure (gas, energy and water supply) of those settlements where the land plot was sold into ownership.

It is important to note that land owners receive additional opportunities and guarantees, in particular:

have the right to freely own, use and dispose of a privatized land plot at their own discretion and in their own interests, including using it as a pledge, making a contribution to the authorized capital (authorized fund) of a legal entity, renting it out;

privatized land plots are private property, and the right to private property is inviolable and protected by the state in accordance with the law;

withdrawal of privatized land plots for public and state needs is not allowed.