Uzbekistan Drafts Special Tax Regime for Foreign Nationals

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan Moves to Attract Foreign Capital With Special Tax Residency Bill

Uzbekistan's parliament has advanced legislation creating a dedicated tax residency status for foreign nationals — a move lawmakers say could meaningfully improve the country's investment climate as Tashkent accelerates its bid to attract international capital and talent.

The Legislative Chamber of the Oliy Majlis passed the bill on first reading on June 9. The draft law establishes a special tax regime for foreign citizens who meet a defined set of conditions, with benefits potentially extending to their minor dependents.

How the regime works:

To qualify, applicants must open an account at an authorized bank or create an electronic wallet on a licensed cryptocurrency exchange, and pay a designated special fee. Applications are processed through state service centers and digital platforms, then reviewed by authorized agencies.

The crypto wallet provision is notable — embedding digital asset infrastructure into a formal tax residency pathway is an uncommon legislative move that signals Uzbekistan's intent to position itself as a digitally progressive jurisdiction for mobile international investors and remote professionals.

The bill also introduces a separate but linked measure: a 50% reduction in the social tax rate for employees enrolled in dual education programs — a vocational training model that combines classroom instruction with workplace practice. Deputies argued the incentive would raise the quality of specialist training and strengthen Uzbekistan's professional development ecosystem.

The legislation follows a presidential decree signed by President Shavkat Mirziyoyev in October 2025, which first outlined the framework for such a regime, stipulating conditions including minimum residency duration and requirements to hold or lease local property.

Parliament's passage of the bill on first reading moves the measure closer to full legal enactment, though additional readings and formal adoption remain ahead.

The initiative forms part of a broader legislative push under Mirziyoyev to liberalize Uzbekistan's economic environment, reduce bureaucratic friction for foreign participants, and diversify the country's investment base beyond traditional extractive sectors.