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Investors committing at least $500 million to construction projects in Uzbekistan’s New Tashkent development zone will be able to lease land at a starting price of just $1 per square metre, pay a 1% profit-tax rate for fifteen years, and build around the clock under a sweeping presidential decree signed on 10 November.
The decree establishes a special legal regime — described as a “regulatory sandbox” — across two zones: the 19,720.9-hectare New Tashkent city territory and a 665.15-hectare district called “Shirin” within Samarkand. The regime applies to large urban-development projects valued at $50 million or more that receive construction permits before 1 January 2035.
A Sliding Scale of Incentives Tied to Investment Size
The decree’s centrepiece is a tiered tax and land-pricing structure that grows more generous as investment commitments rise. Starting land-lease prices per square metre are set at $200 for projects below $50 million, falling to $150 for the $50–100 million bracket, $100 for $100–250 million, $50 for $250–500 million, and $1 for anything above $500 million. All prices in the Samarkand Shirin zone carry a 0.6 discount coefficient.
Land is to be allocated through open auction or a “Swiss challenge” competitive-tender process on the E-auksion platform. Investors must pay a deposit of between 10% and 30% of the project value upfront; the remainder is spread over four to seven years interest-free. Once a project is completed and handed over, ownership rights or a lease of up to 49 years are registered in the state cadastre at no additional charge.
On taxation, the decree introduces what it calls a “state investment partner” principle. Profit earned from leasing or selling completed project assets is taxed at 1% — rather than the standard rate — for five years when total direct investment reaches at least $50 million, for ten years at $100 million, and for fifteen years at $500 million or more. Legal entities are fully exempt from property and land taxes for twenty years. Dividends reinvested inside Uzbekistan before 1 January 2040 attract no tax at all.
Customs Relief, Visa Waivers and Round-the-Clock Building
Investors, contractors and subcontractors may import construction machinery, equipment, materials, furniture and metal structures duty-free during the building phase, subject to a cap — set at 30%, 50% or 70% of the investment sum depending on project scale. Services purchased from foreign entities by lead contractors and project organisations are exempt from value-added tax.
Foreign architects, engineers and specialists earning annual salaries above $50,000 need no work permit, are exempt from visa and registration fees, and pay income and social taxes at 1% for up to three years. Foreign investors receive a ten-year guarantee against adverse changes in legislation.
To accelerate timelines, the decree removes the requirement to obtain architectural approvals from regional councils; that authority passes to the relevant project directorates. Developers and foreign contractors may use a simultaneous design-and-build fast-track method, apply international technical standards, and conduct construction and installation work on a 24-hour, seven-day-a-week basis.
The eligible project types span towers of 200 metres or more — designated “Iconic Towers” — hotel complexes, trade and business centres, entertainment theme parks, resort zones, and medical, educational, sports and cultural facilities. Retail, tourism and service projects must involve leading international brands. Hotel complexes ranked in the global top 50 brands or top five in their category qualify for the full package of incentives even if their investment falls below the $50 million threshold.
Compensation Funds and a Six-Month Build Deadline
Landowners displaced for public needs are to be compensated from the state targeted fund: 260 billion soums is to be transferred to the New Tashkent City Construction Directorate, and 200 billion soums to the Shirin district directorate, both by 15 December 2026.
Once land is allocated, investors are required to begin construction within a maximum of six months. Project directorates are also authorised to relocate trees and shrubs not belonging to the state forest fund — free of charge, to nurseries or other areas — under the supervision of the Ecology Committee.