LEGAL GUIDE · 2026 EDITION
Uzbekistan Legal Guide
Foreign Investor Edition — 2026
Uzbekistan is Central Asia's most populous country — more than 38.2 million people at 1 January 2026, USD 43.1 billion in investments attracted in 2025, GDP growth of 7.7% in 2025, and a reform programme that has fundamentally restructured the investment legal framework since 2017. It is also a jurisdiction where the pace of reform has outrun the consistency of implementation — where what the law says today may be revised by presidential decree next month.
This guide is written for foreign investors, general counsel and finance directors. It sets out what matters and what changed in 2026.
Bond Stone in Uzbekistan — firm profile & Tashkent office → · Legal services in Uzbekistan →
The five decisions every Uzbekistan investor faces
1. Civil law entity or TIFC?
Uzbekistan operates a civil law system. The Tashkent International Financial Centre (TIFC) — created by Presidential Decree No. UP-48 of 30 March 2026 and Constitutional Law No. ZRU-1158 of 13 July 2026 — will have its own Acts, backed by the common law of England and Wales, with its own corporate framework and dispute resolution. The TIFC is not yet operating, so the civil law LLC remains the vehicle for current investment structures; TIFC structuring is a matter of planning for financial services and cross-border transactions.
2. LLC, JSC, or production-sharing?
The LLC is the standard vehicle for most foreign investors — flexible, no minimum capital for most sectors, 100% foreign ownership permitted. The JSC is used for public companies and commonly for regulated financial institutions. Oil and gas investors may operate through production-sharing agreements (PSAs). Structure determines tax exposure, repatriation rights, and dispute resolution options.
3. EFI status or SEZ?
Uzbekistan offers two principal incentive tracks. The Law on Investments and Investment Activity gives investors guarantees against worsening of legislation and repatriation rights, and Enterprise with Foreign Investment (EFI) status adds rights such as accounts in any currency. Special Economic Zones (SEZs) — 34 as of 1 July 2026 — offer tax and customs benefits, simplified procedures, and dedicated infrastructure. Participants from 1 April 2026 receive accelerated depreciation rather than a CIT exemption (Tax Code, Art. 473). Choosing the right track depends on sector, investment size, and location. The two can be combined in certain structures.
4. Which investment law applies?
Law No. ZRU-598 of 25 December 2019 governs today. A replacement law went back to parliament for reconsideration: the Legislative Chamber adopted resolutions on it in June and September 2025, and we found no enacted replacement on lex.uz at November 2026. Check the position before signing.
5. How will you resolve disputes?
Foreign investors in high-value disputes should weigh Uzbek court proceedings against arbitration. The Tashkent International Arbitration Centre (TIAC) provides institutional arbitration. Uzbekistan is a party to the New York Convention — foreign arbitral awards are enforceable. Investor-state arbitration is available under Uzbekistan's bilateral investment treaties. A pre-trial claim procedure applies before court filing where a law or the contract requires it. Settle the dispute mechanism, governing law and arbitration seat at the contract stage.
What changed in 2026
Replacement Investment Law — not enacted
A law to replace the 2019 Law on Investments and Investment Activity was returned for reconsideration. Legislative Chamber resolutions No. 931-V of 3 June 2025 and No. 1296-V of 16 September 2025 deal with it, and we found no enacted replacement on lex.uz at November 2026. Law No. ZRU-598 remains the primary investment legislation.
Presidential Decree No. UP-97 — June 2025 FDI incentives
Presidential Decree No. UP-97 of 23 June 2025, "On additional measures to stimulate the attraction of foreign direct investment," entered into force 25 June 2025. It amends Decree No. UP-3594 of 11 April 2005: the tax benefits for direct private foreign investment now also cover businesses registered and operating in category 4 and 5 districts of Tashkent region, and growing agricultural products is added to the sectors eligible for those benefits (paras. 1 and 2 and Annex). It is a targeted amendment, not a new investment regime. Whether a particular project qualifies depends on its location and sector.
SOE privatisation — National Investment Fund and PP-145 targets
Presidential Resolution No. PP-145 of 21 April 2025 set targets for the public sale of stakes in 29 large SOEs. The National Investment Fund of the Republic of Uzbekistan was established by Presidential Resolution No. PP-303 of 27 August 2024. On 3 February 2025 the Ministry of Economy and Finance announced the Fund's investment asset management agreement with Franklin Templeton Asset Management FE LLC, covering the Fund's portfolio of 18 state-owned enterprises and commercial banks.
Tax Code amendments — effective 1 January 2026
A series of legislative acts adopted December 2025 introduced amendments to the Uzbek Tax Code effective 1 January 2026. The IMF staff concluding statement of the 2026 Article IV mission (13 April 2026) recommended phasing out, and not granting new, income-based tax incentives such as tax holidays and reduced CIT rates, and eliminating CIT and non-statutory customs duty exemptions. Investors relying on CIT exemptions or reduced rates should assess the stability of their incentive structures under the evolving tax framework.
WTO accession
Uzbekistan is pursuing WTO accession. Legislative changes have been made to comply with WTO requirements — unifying state duties, excise taxes, and procedures for non-residents and local companies, and removing market-distorting subsidies. Check the current status before relying on it.
Renewable energy
Significant renewable energy projects are under development across solar, wind, and small hydro. The energy market liberalisation programme is advancing, creating new investment opportunities in generation, transmission, and supply.
The legal framework in brief
Legal system
Civil law — Soviet/Continental tradition. Presidential decrees carry significant legal weight alongside codified law. The TIFC, created in 2026 and not yet operating, will apply its own Acts backed by the common law of England and Wales. Reform pace is rapid — legal positions can change by decree with short notice.
TIFC legal framework →Foreign ownership
100% foreign ownership permitted in most sectors. Sector laws add limits and approvals, for example: a legal entity in whose charter capital foreign investment is 30% or more cannot found a mass media outlet (Law on Mass Media, Art. 8); Central Bank permission is needed for bank stakes of 5% or more (Law on Banks and Banking Activity, Art. 22). Foreign persons and enterprises with foreign investment cannot own any land, agricultural or not; they may only lease it (Land Code, Art. 17(3)). State remains dominant in energy, telecoms, and banking — privatisation programme creating new entry points.
Foreign investment advisory →Tax environment
CIT 15% standard rate. VAT 12%. WHT on dividends 10%. 54 DTTs in force (Tax Committee, March 2026). SEZ participants may receive CIT and customs exemptions. Tax incentive framework under IMF-recommended revision — stability of current incentives should be verified. Tax Code amendments effective 1 January 2026.
Tax advisory — Uzbekistan →Dispute resolution
Uzbek economic courts, Tashkent International Arbitration Centre (institutional arbitration), and investor-state arbitration under bilateral investment treaties. Pre-trial claim procedure where a law or the contract requires it. Party to the New York Convention — foreign arbitral awards enforceable. TIFC dispute resolution developing.
Dispute resolution advisory →Currency & repatriation
Current account convertibility since the 2017 reforms. Article 17 of the Law on Investments and Investment Activity guarantees free transfer of funds after tax, though the State may suspend repatriation in the cases listed there. Historical currency restrictions have been substantially liberalised — but monitoring is advisable.
Repatriation advisory →Key risks
Legislative instability — reform pace means legal positions change frequently. State dominance in key sectors limits genuine private competition. IP enforcement improving but not yet reliable. Corruption risk — improving since 2017 but material in permitting, licensing, and procurement. Tax incentive stability uncertain under IMF reform recommendations.
Full legal services advisory →Uzbekistan by sector — where the opportunities are
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Energy & Natural Resources Oil · Gas · Uranium · Renewables Major natural gas reserves, significant uranium and gold production. PSA framework for oil and gas. Energy market liberalisation underway. ADB and World Bank active in infrastructure financing. |
Privatisation & M&A SOE Acquisitions · IPOs · State Assets National Investment Fund (PP-303 of 27 August 2024) holding state stakes, with Franklin Templeton as asset manager. Resolution No. PP-145 of April 2025 — stakes in 29 large SOEs for public sale. |
Pharmaceuticals & Healthcare Import · Manufacturing · Distribution Growing import and local production market. Medicines need Ministry of Health registration; pharmaceutical activity needs a licence from the Agency for Development of the Pharmaceutical Industry. Bond Stone advises multiple international pharmaceutical companies on regulatory entry and compliance. |
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Construction & Infrastructure EPC · ADB/WB Projects · PPP Significant ADB and World Bank infrastructure pipeline. Law No. ZRU-537 of 10 May 2019 enables private participation in public infrastructure. FIDIC contract standards widely used. Construction licensing required for foreign contractors. EPC mandates from Chinese, Korean, and European contractors active. |
Agriculture & Agribusiness Food Processing · Exports · Logistics Uzbekistan is a major exporter of cotton, fruit, and vegetables. No land, including agricultural land, can be owned by foreign persons or enterprises with foreign investment; land is available to them only on lease (Land Code, Art. 17(3)). Food processing and agribusiness investment actively encouraged. Modern packaging sector CIT incentive active through 2028. |
Fintech & TIFC TIFC · CBU Licensing · Payments Tashkent International Financial Centre created in 2026 but not yet operating. CBU licenses payment organisations and microfinance. Digital banking and fintech active. |
Bond Stone in Uzbekistan
Tashkent office. Full-service. Partner-led.
- Bond Stone Tashkent — led by Assadullah Muradov, Managing Director, Tashkent (Uzbek Bar member since 2009)
- EPC, FIDIC, PSA, and ADB/World Bank contract experience — built over 15+ years of construction and energy mandates in Uzbekistan
- Track record: multiple international pharmaceutical companies, Chinese EPC contractors, Clean Development Mechanism mandates, PSA advisory
- Ranked Legal 500 EMEA Top Tier and IFLR1000 Market Leader — full range of Uzbekistan practice areas across corporate, M&A, investment, tax, employment, data protection, and dispute resolution
Legal services in Uzbekistan
Discuss your Uzbekistan investment
Contact Bond Stone Tashkent for a confidential discussion about your Uzbekistan investment, acquisition, or regulatory matter. We respond within one business day.
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