Privatization of Land Plots Belonging to Citizens and Legal Entities

The privatization of land plots in the Republic of Uzbekistan is an important stage in the development of land relations, ensuring transparency in real estate transactions, and creating conditions for the formation of an effective land market. The legal foundation of this process is established by the Law “On Privatization of Land Plots Not Intended for Agricultural Use”, as well as several subordinate acts, including Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 71 dated February 14, 2022.

Privatization of land plots belonging to citizens and legal entities is carried out based on the following documents and legal acts:

• Law of the Republic of Uzbekistan “On Privatization of Land Plots Not Intended for Agricultural Use”;
• Presidential Decree No. PF-6243 dated June 8, 2021, aimed at ensuring equality and transparency in land relations, protecting land rights, and transforming land into a market asset;
• Resolution of the Cabinet of Ministers No. 71 dated February 14, 2022, defining the procedure and mechanisms of privatization.

Subjects of Privatization

Privatization applies to land plots held by citizens and legal entities under the following rights:

• Permanent use (possession);
• Lease (rental);
• Lifetime inheritable possession.

Mechanisms of Privatization

1. Through direct acquisition:

Land plots owned or used by citizens and legal entities may be purchased into ownership by paying the price determined through a special formula. The price is calculated based on the cadastral number, land area, and basic tax rates.

2. Through electronic auctions:

Free (unallocated) land plots are sold through electronic platforms:

• • E-auksion – for providing land for entrepreneurial and urban development purposes;
  • Yerxususiylashtirish JSC – for privatizing plots already assigned to citizens or organizations;
  • Yerelektron JSC – for managing data of plots included in auctions.

Privatization Procedure

The privatization process includes several stages:

1. Submission of an application via the Centers for Public Services or the Unified Portal of Interactive Government Services (EPIGU);
2. Verification of the legal status of the land plot through integrated cadastral systems;
3. Calculation of the land value using the approved formula (considering base tax rates, cadastral data, costs of cadastral and topographic work);
4. Payment of the determined price and receipt of a state ownership order for the land plot;
5. State registration of ownership rights in the cadastral authorities.

Economic and Legal Consequences

Privatization of land plots leads to the following outcomes:

• Formation of the land market: Land becomes a full-fledged object of sale, inheritance, donation, and mortgage;
• Expansion of credit opportunities: Privatized land may serve as collateral for bank loans;
• Increase in the tax base: Expands the land tax base, strengthening local budget revenues;
• Legal protection of property rights: Establishing private ownership reduces the risk of expropriation or disputes.

Privatization of land plots belonging to citizens and legal entities of the Republic of Uzbekistan represents an important step in reforming land relations, ensuring equal access to land resources, and developing a market economy.
The introduction of electronic systems such as “Yerxususiylashtirish” and “E-auksion” promotes digitalization, minimizes corruption risks, and increases public trust in private land ownership.

Mechanisms of Privatization of Land Plots Belonging to Citizens and Legal Entities

Criterion	Privatization through Purchase (for Allocated Plots)	Privatization through Electronic Auction (for Free Plots)
Subjects	Citizens and legal entities possessing permanent use, lease, or lifetime inheritable possession rights	Any citizens and legal entities admitted to participate in the auction
Legal Basis	Law “On Privatization of Land Plots Not Intended for Agricultural Use”; Resolution No. 71 of 14.02.2022	Same Law and Resolution No. 71 of 14.02.2022
Electronic System	“Yerxususiylashtirish” JSC (for privatization of assigned plots)	“E-auksion” platform (for sale of free plots)
Application Procedure	Through Centers for Public Services or EPIGU portal	Registration on the “E-auksion” electronic trading platform
Legality Verification	Automatic verification through cadastral databases (Integrated System “Kadastr va ro‘yxatdan o‘tkazish integratsiyalashgan AAT”)	Verification of plot status via “Yerelektron” JSC (accounting, reservation, registration)
Price Formation	Formula: base tax rate × coefficient (10× for Tashkent, Nukus, and regional centers; 5× for other regions) + cadastral and topography costs	Starting price set by state authorities, final price determined through bidding
Payment	Through the Unified Billing System in national currency	Paid by the auction winner within established deadlines
Final Document	State ownership order → cadastral registration	Sale or lease contract based on auction results → cadastral registration
Legal Consequences	Land becomes private property, may be sold, inherited, donated, mortgaged	Land becomes the property (or lease) of the auction winner
Features	Available only to current holders of land-use rights	Available to anyone but only for unallocated land plots
Economic Effect	Legalization of existing rights, expansion of the tax base	Attraction of new investors, efficient distribution of free land resources