Uzbekistan’s new housing market incentives: cashback and cashless payments

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan’s primary real estate market is preparing for notable changes as authorities strengthen control over cash transactions and develop a mechanism to refund a portion of value-added tax (VAT) for buyers of new apartments.

According to Jahongir Abdiyev, the draft document on cashback payments is in the final stages of approval. Several implementation scenarios are being considered, with key parameters under review.

Key questions include the size of the refund, selection criteria for eligible residential complexes, and timing of payments. Options under discussion range from cashback being paid directly at the transaction to disbursement after signing the property handover act. Preliminary estimates suggest a refund between 3% and 6%, though a final decision has yet to be made.

The initiative aims to improve transparency in the construction sector, where a significant portion of transactions currently bypass VAT accounting. Previously, Davron Vakhabov noted that up to 90% of apartments were sold without tax documentation. He suggested that a 4–5% cashback could encourage buyers to demand official receipts from developers.

The legal basis for the mechanism was established in December 2025 by a decree from President Shavkat Mirziyoyev aimed at reducing the shadow economy. The decree outlined a refund process through the banking system involving the Ministry of Construction and Housing, the State Tax Committee, and the Ministry of Economy and Finance.

Final rules are expected to be published soon. Meanwhile, from April 1, 2026, new regulations take effect requiring all payments for goods and services exceeding 25 million soums to be conducted exclusively via cashless methods. This includes real estate transactions, which must now be settled through banking channels.