Introduction of a special tax regime for foreign citizens

In accordance with the Presidential Decree of the Republic of Uzbekistan of 04.10.2025 No. УП-180 (“the Decree”), starting from January 1st, 2026 a special tax regime would be available for foreign nationals, providing for potential exemption from personal income tax on income derived from the sources outside of the Republic of Uzbekistan. In this bulletin, we outlined the summary of the Decree:

• Special tax regime for foreign individuals. Non-Uzbek sourced income of foreign citizens is to be exempt from personal income tax under the following conditions:

- opening a bank account (or a crypto wallet) in a specially authorized commercial bank or (crypto exchange) in Uzbekistan;
- payment of a special fee in the amount of USD 50,000.

• Procedure for obtaining the special tax status. Application should be submitted to the Commission for the provision of a special tax regime for foreign citizens through the Tax Committee. Applications must be considered within five business days, after which they will be accepted or rejected by the Commission.
• New tax residency rules under the special taxation regime. Foreign individuals who stay in the Republic of Uzbekistan for more than 30 calendar days in any consecutive 12-month period and own or rent residential property, will be considered as Uzbek tax residents.
• Applicability of tax exemption to others. It should be noted that special taxation regime is also applicable to close relatives of foreign tax residents (of legal age) upon additional payment of special fee in the amount of USD 10,000 per person.
• Simplified registration at the place of temporary residence. Foreign citizens and their close relatives, for whom the special fee has been paid, will be registered at their place of residence in Uzbekistan within one day upon submission of an application and proof of payment of the special fee. The registration is valid for up to 5 years.

HOW CAN BEONE HELP?

We believe that the proposed amendments indicate the intention of the tax authorities to more actively engage in taxation of income earned by foreign nationals, which are considered tax residents of Uzbekistan.
BeOne team would be pleased to assist you in addressing the following issues once the provisions outlined in the Decree are officially incorporated into the Tax Code of the Republic of Uzbekistan:

• Advisory services on applicability of special tax regime to foreign personnel of your company;
• Assistance in the process of obtaining the special tax status;
• Preparation of individual annual personal income tax returns of foreign nationals;
• Conducting a tax briefing for foreign nationals.