Doing Business in Uzbekistan — 2025

The modern stage of Uzbekistan’s development is characterized by a systemic reform of the institutional foundations of the economy. Within the framework of the “Uzbekistan — 2030” and “Green Transition” strategies, measures are being implemented to liberalize the business environment, reduce administrative barriers, and create a predictable tax policy. The Republic demonstrates steady progress in improving its investment climate, relying on international standards of corporate governance, tax administration, and investment protection.

1. Institutional Transformation of the Business Environment

The reform of legislation on limited liability and joint-stock companies, as well as the creation of “one-stop service” business centers, has significantly simplified the process of company registration. The registration of a legal entity now takes no more than two working days, including tax, statistical, and judicial registration.

1.1. E-Government and Digitalization

The establishment of electronic portals such as e-government.uz and e-visa.gov.uz has ensured the digitalization of key administrative procedures — from company registration and obtaining identification numbers to filing tax reports. This has increased transparency and reduced corruption risks.

1.2. Legal Certainty and Investor Protection

Uzbekistan’s legislation guarantees equal legal treatment for foreign and domestic investors and provides protection against nationalization as well as compensation for losses in the event of legislative changes. Experts emphasize that a “predictable business environment with stable tax and judicial institutions” is being formed.

2. The 2025 Tax Reform as a Factor of Competitiveness

2.1. Reduced Tax Burden and Simplified Administration

As of January 1, 2025, amendments to the Tax Code came into effect, establishing unified rates:

• Corporate income tax — 15%,
• Value-added tax (VAT) — 12%,
• Personal income tax — 12%.

This makes Uzbekistan’s tax system one of the most competitive in Central Asia.

2.2. Investment Deductions and Incentives

Enterprises are entitled to investment deductions of up to 20% of the value of new equipment and 10% of capital expenditures for production expansion — a policy aimed at stimulating industrial modernization and technology localization.

2.3. Control and Transparency

Rules on controlled foreign companies (CFCs) and transfer pricing have been introduced to prevent profit shifting and ensure tax transparency for multinational structures.

3. Currency and Banking Liberalization

Uzbekistan has lifted most currency restrictions: residents may freely purchase foreign currency for international settlements, profit repatriation, and loan repayments. The minimum authorized capital for banks has been set at UZS 500 billion, strengthening the stability of the financial sector.

The government is actively privatizing state-owned banks to reduce state participation and increase capital management efficiency. This aligns with recommendations from the World Bank and the IMF and aims to develop a competitive credit market.

4. Labor Migration and Employment Liberalization

Simplified visa procedures, electronic work permits, and accreditation cards for foreign employees (including investors) make Uzbekistan more attractive for skilled professionals and managers. The creation of a Unified National Labor System enables electronic records of labor relations and ensures social protection for workers.

5. Ecological and Energy Transformation

The transition to a green economy is becoming a key direction of investment policy. VAT exemptions on the import of equipment for infrastructure projects (energy, transport, water supply) until 2028 encourage the introduction of environmentally friendly technologies.

Institutional and tax reforms of 2025 are shaping a modern, liberal, and investment-friendly environment in Uzbekistan. Systemic modernization of legislation, simplified administrative procedures, currency and banking liberalization, and tax incentives are positioning the country as a regional leader in investment growth. The shift toward a digital economy, green technologies, and global market integration provides a foundation for sustainable long-term development.

Key Reform Indicators (2025)

Reform Area	Measure	Effect
Business Registration	“One-stop shop,” online registration in 2 days	Reduced bureaucracy
Tax System	Profit tax — 15%, VAT — 12%, PIT — 12%	Transparency and competitiveness
Investment Incentives	20% and 10% deductions for modernization	Increased industrial investment
Currency Policy	Free purchase of currency, profit repatriation	Capital inflow
Banking System	Privatization and capitalization of banks	Financial stability
Labor Law	Electronic permits and accreditation	Attraction of specialists
Environmental Policy	VAT exemption for “green” projects	Sustainable development

Economic Indicators of the Republic of Uzbekistan (as of January 1, 2025)

Indicator	Value
Territory	448,900 km²
Population (estimate)	37.6 million
Administrative divisions	14 (Republic of Karakalpakstan, 12 regions, Tashkent city)
Currency	Uzbek sum (UZS)
Official exchange rate (01.01.2025)	1 USD = 12,920.48 UZS; 1 EUR = 13,436.01 UZS; 1 RUB = 130.17 UZS; 1 CNY = 1,770.12 UZS
Time zone	GMT +5
Major cities	Tashkent, Samarkand, Bukhara, Khiva
Key industries	Energy, manufacturing, agriculture, textiles, IT, construction
Profit tax rate	15%
VAT rate	12%
Personal income tax (PIT)	12%
Social tax (employers)	12% (25% for state bodies)
Investment incentives	20% deduction for new equipment; 10% for reconstruction
Minimum bank charter capital	500 billion UZS (≈ USD 38.7 million)
Business digitalization	Online registration ≤ 2 days (“one-stop shop”)
Export income tax	0% benefit abolished in 2025
Small business tax (revenue ≤ 1 billion UZS)	Unified income tax — 4% (2% in remote areas)
Property tax	1.5% (3% for incomplete construction)
Subsoil user tax	2–10% (depending on resource type)
Water tax rate	Surface: 700 UZS/m³; Underground: 850 UZS/m³
Refinancing rate	≈ 13.5% (as of 01.01.2025)
Inflation (forecast)	~8%
GDP growth (forecast)	5.6% (real terms)
FDI inflow (forecast)	> USD 10 billion
Key trade partners	China, Russia, Kazakhstan, Turkey, EU

Dynamics of Uzbekistan’s Economic Indicators (2020–2025)

Year	GDP Growth (%)	Inflation (%)	FDI (USD billion)	Exports (USD billion)	Exchange Rate (1 USD = UZS)	Profit Tax (%)	VAT (%)	PIT (%)
2020	1.7	11.0	6.6	15.1	10,500	15	15	12
2021	7.4	10.0	7.5	16.6	10,700	15	15	12
2022	5.7	12.3	8.2	18.9	11,200	15	15	12
2023	6.0	9.2	8.8	19.3	11,600	15	12	12
2024	5.8	8.5	9.4	20.5	12,300	15	12	12
2025 (forecast)	5.6	≈8.0	10.2	22.0	12,920.48	15	12	12

 

Analytical Commentary

1. GDP growth has stabilized at 5.5–6% in 2023–2025, reflecting a transition from post-crisis recovery to sustainable structural development.
2. Inflation declined from 11–12% (2020–2022) to the target level of 8% in 2025, driven by tighter monetary policy and import liberalization.
3. Foreign direct investment (FDI) increased by more than 50% over five years, from USD 6.6 billion to USD 10.2 billion, driven by privatization in banking, mining, energy, and IT.
4. Tax policy has become more competitive — since 2023, VAT was reduced from 15% to 12%, and export benefits were unified as part of the country’s WTO accession efforts.
5. Uzbek sum/USD exchange rate reflects moderate depreciation amid stable macroeconomic fundamentals and robust foreign reserves.

Structure of FDI by Economic Sectors (2025, forecast)

Sector	Share of Total FDI (%)	Key Investors / Regions
Energy (incl. renewables)	28	Saudi Arabia, UAE, China
Industry and manufacturing	25	Korea, Russia, Germany
Mining sector	16	China, Kazakhstan, Switzerland
Infrastructure and transport	12	Turkey, Japan, ADB
IT and fintech	8	Singapore, UAE, USA
Agriculture and food industry	6	Uzbekistan, EU, India
Education, healthcare, tourism	5	UK, Korea