Real estate in Uzbekistan

Uzbekistan is a particularly attractive destination for real estate investors, and this is due to a variety of factors. The rich history of this country, rich in culture and traditions, makes it unique and attractive for those who appreciate cultural heritage.

Under current Uzbek legislation, foreign citizens and companies can have ownership rights to land in Uzbekistan.

To acquire land, foreigners must:

• Select a suitable plot of land. It is best to contact a local real estate agency, which will help you with the search and risk assessment.
• Obtain permission from the local authorities for the purchase of a specific plot of land by a foreign national.
• Prepare a package of documents, including a contract of sale, passport and other necessary papers.
• Register the title to the land plot in the state real estate register.

It is best to contact an experienced local lawyer to properly handle the transaction and minimize the risks of buying land in Uzbekistan.

In recent years, Uzbekistan has actively implemented reforms to liberalize the economy and attract foreign investment. These changes have also had an impact on the country's real estate market.
Yes, today foreign citizens can acquire ownership of real estate in Uzbekistan. This has become possible thanks to a number of regulations that have been enacted in recent years.
In particular, in 2019, the law "On Amendments to Certain Laws of the Republic of Uzbekistan in Connection with the Adoption of the Law of the Republic of Uzbekistan "On Investment Activity"" came into force. This document simplified the procedures for registering property rights for foreigners.
Now citizens of other countries can acquire apartments, houses, land plots, as well as industrial property on the territory of Uzbekistan on the same terms as citizens of the Republic. At the same time, the transaction must be formalized in accordance with the procedure established by law.
These changes have several objectives. Firstly, to encourage the inflow of foreign capital and investment into the country's economy. Secondly, to develop the service sector, especially tourism, for which it is necessary to offer foreigners the opportunity to acquire real estate.
The gradual opening of the real estate market is thus part of the comprehensive economic reforms being carried out in Uzbekistan. This makes the country more attractive to investors and encourages the inflow of foreign capital into various sectors of the economy.

1. Choosing a property

The first step is to find a property that you like - an apartment, a house, a plot of land or a commercial property. You can do this yourself by placing ads for properties for sale in Uzbekistan on online marketplaces. It is also recommended to contact a local real estate agency - their services will help you choose options more efficiently and avoid possible risks when buying.

2. Agreement on the price and terms of the transaction

Once you have decided on a property, you should discuss the price and other terms of the deal with the seller. In Uzbekistan, it is common to negotiate when buying property, so it is worth trying to lower the initial cost. It is also important that you agree on the terms of payment and transfer of the property. It is desirable to enter into a preliminary purchase agreement with prescribed terms.

3. Obtaining legal advice

Next, it is advisable to use the services of a local lawyer or law firm to properly formalize the transaction. The specialist will help you to draw up the purchase contract competently, check all the documents for the property and carry out the necessary legal procedures for registering the property. In this way, possible problems with the registration of the property can be avoided in the future.

4. Registration of the right of ownership

Once the purchase contract has been signed, the transfer of ownership of the property from the seller to the buyer must be registered. For this you will need a passport, the purchase contract and the payment documents. Registration takes place at the state land registry office.

5. Payment of taxes and fees

In the final phase, you must pay the necessary taxes and fees: the property tax, the state fee for registration and the notary fee for notarization of the transaction. The amount of these depends on the type and value of the property.

Once you have completed all these steps, you are a full-fledged real estate owner in Uzbekistan!

• Language barrier

Not everyone in Uzbekistan speaks English, especially not the older generation. This can make it difficult to understand each other during viewings, negotiations with the seller or communication with estate agents. It is recommended that you either bring an interpreter or contact an agency with English-speaking staff.

• Differences in the legal system

Legislation in Uzbekistan is very different from that in European countries or the USA. It is best to use the services of a local lawyer or law firm. This will help to avoid possible problems with the transaction, registration of property rights and other legal aspects.

• Costs of maintaining the property

When calculating the investment indicators, the costs of running the property should not be forgotten: Service charges, possible repairs, services of the management company (in case of renting). These costs can amount to up to 30% of the rental income.

• Currency regulation risks

In Uzbekistan, there may be restrictions on exchanging the local currency (soum) into dollars or euros. In order to be able to take your rental income abroad, you should inform yourself about the current foreign exchange regulations.

• Taxes

Real estate in Uzbekistan is subject to tax, the amount of which depends on the type of property, its location and other factors. It is necessary to take this tax payment into account in advance when calculating the budget.

If you take these factors into account when buying a property in Uzbekistan, you can minimize the risks and avoid common mistakes to make a profitable investment.

Under current law, foreign citizens have the right to take out mortgage loans for the purchase of real estate in Uzbekistan on the same basis as local citizens.

However, banks may impose additional requirements on foreigners:

• A large down payment (from 40 percent)
• Proof of a stable income
• Additional risk insurance
• Presentation of documents for legal residence in Uzbekistan

When taking out a mortgage, it is therefore important to check the conditions of the individual banks and select the most suitable financing offer. It is recommended to consult a local lawyer and financial expert.