Special economic zones
Legislation
The Law of the Republic of Uzbekistan “On Special Economic Zones”, which entered into force on 19 May 2020, establishes the legal framework for the creation and operation of special economic zones (SEZs). These designated areas offer a special legal regime to attract investment, introduce advanced technologies and support regional economic development.
The Law recognises five types of SEZs: free economic zones, special scientific and technological zones, tourist and recreational zones, free trade zones and special industrial zones.
SEZ participants may qualify for property and land tax exemptions of 3 to 10 years for investments starting from USD 300,000, and profit tax exemptions of 3 to 10 years for investments starting from USD 3 million (the duration of each exemption depends on the amount invested). For participants registered from 1 April 2026, accelerated depreciation replaces the profit tax exemption.
The SEZ legal framework also includes the Land Code, the Tax Code, presidential decrees and resolutions, and resolutions of the Cabinet of Ministers. Further information on the provisions of these documents most relevant to investors is provided below.
Summary table
| # | Number | Title | Type | Adopted | In brief |
|---|---|---|---|---|---|
| 01 | LRU-604 | Law | 17.02.2020 | Core act: types of zones, project requirements, application procedure, participant status, land rules, tax and customs benefits, labour rules. | |
| 02 | DP-4853 | Presidential Decree | 26.10.2016 | Sets 3-10 year periods of property tax and land tax benefits linked to the amount invested. | |
| 03 | CMR-196 | Cabinet of Ministers Resolution | 10.04.2017 | Boundaries of four free economic zones; regulation on applying tax and customs benefits. | |
| 04 | DP-5600 | Presidential Decree | 21.12.2018 | Land allocation through electronic auctions; rules on rent and on customs-exempt imports. | |
| 05 | RP-5243 | Presidential Resolution | 14.09.2021 | Transitional profit tax rules; 120-day deferral of VAT and customs duty on imports. | |
| 06 | DP-153 | Presidential Decree | 13.06.2022 | Abolishes administrative councils; decisions within 10 working days; lease rights as loan collateral. | |
| 07 | CMR-452 | Cabinet of Ministers Resolution | 07.09.2023 | Step-by-step procedure, deadlines and fees for investors applying to a zone. | |
| 08 | DP-41 | Presidential Decree | 04.03.2025 | Export focus, direct land leases, leases of up to 49 years, Namangan Special Export Zone. |
Key takeaways for investors
- Projects must fit the zone’s specialisation and meet general requirements. Free economic zones additionally require import substitution or significant processing, unless the project is fully export-oriented.
- The investment application is reviewed within 10 working days, and it may be refused only if it contains unreliable information.
- Participant status requires an investment agreement and entry in the register; the registration fee is 45 base calculation amounts.
- Participants are exempt from property tax and land tax for 3, 5, 7 or 10 years for investments from USD 300,000, USD 3 million, USD 5 million or USD 10 million respectively, and from profit tax for 3, 5 or 10 years for investments from USD 3 million, USD 5 million or USD 15 million respectively. For participants registered from 1 April 2026, the profit tax benefit takes the form of accelerated depreciation.
- Existing benefits are preserved until the end of their term, but are lost from the first day of the month in which participant status is withdrawn.
- Customs payments are waived on imported technological equipment with no domestic equivalent, on construction materials not produced in Uzbekistan and on inputs for export production. VAT on imports may be deferred for up to 120 days, and excess VAT is refunded within seven days.
- At least 90 per cent of a zone company’s staff must be citizens of Uzbekistan, and employment contracts may not set conditions below national law and International Labour Organization conventions.
- Land leases may run for up to 49 years, and lease rights may serve as loan collateral.
- Investment commitments carry consequences: a lease can be terminated if work does not start within six months, and exempted amounts can be recovered if the committed investment is not made.