Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan will introduce a special legal regime to support major urban development projects in New Tashkent and other regions. Investors will be eligible for tax incentives, including a reduced corporate income tax rate of 1%.
Presidential Decree No. UP-243 was adopted on 10 November 2026. It aims to support urban development projects worth at least US$50 million, enhance the country’s investment appeal and develop its tourism potential.
Other stated objectives include removing administrative barriers and bureaucratic obstacles to the implementation of major investment projects.
The special legal regime, which provides for a “regulatory sandbox” mechanism, will apply in the areas specified in an annex to the decree.
The powers, rights and benefits granted to the New Tashkent Construction Directorate will also be extended to directorates responsible for developing other special zones.
In particular, these directorates will be able to independently establish and approve requirements for territorial development planning documents, determine the main requirements for facilities built on land plots put up for sale, and set individual technical conditions for each project.
According to an explanation issued by the Chamber of Commerce and Industry, legal entities implementing urban development projects under the special regime will be able to pay corporate income tax at a rate of 1% on revenue from leasing and selling properties. The duration of the tax relief will depend on the volume of direct investment: five years for investments of at least US$50 million, 10 years for investments of at least US$100 million, and 15 years for investments of at least US$500 million.
In addition, legal entities will be exempt from property tax and land tax for 20 years on assets used in urban development projects with investments of at least US$50 million.
Services purchased by the general contractor and the general design organisation from foreign individuals and legal entities that do not operate in Uzbekistan for the implementation of such projects will be exempt from VAT.
Dividends received by investors under urban development projects and reinvested in Uzbekistan will also be exempt from taxation until 1 January 2040.
