Privatization of Land Plots in Uzbekistan

The privatization of non-agricultural land plots is an important direction in the reform of land relations in the Republic of Uzbekistan. This process aims to ensure equality and transparency in land use, protect ownership rights, and transform land into a full-fledged market asset. The key regulatory framework governing this institution is the Law of the Republic of Uzbekistan “On Privatization of Non-Agricultural Land Plots” and the Cabinet of Ministers Resolution No. 71 of February 14, 2022.

Privatization of non-agricultural lands is carried out based on:

• The Law “On Privatization of Non-Agricultural Land Plots”;
• Presidential Decree No. PF-6243 of June 8, 2021, aimed at ensuring transparency in land relations;
• Cabinet of Ministers Resolution No. 71 of February 14, 2022, approving the administrative regulations and procedures for land privatization.

Eligible Land Plots

Privatization applies to land plots that are:

• In permanent use (possession) of legal entities and individuals;
• Under lease;
• In lifelong inheritable possession of citizens.

Mechanisms of Privatization

The legislation provides for two main mechanisms:

1. Direct Acquisition by Eligible Persons (leaseholders, permanent users, lifelong possessors, etc.)
   • The procedure is implemented through the automated information system “Yerxususiylashtirish.”
   • Applications are submitted through Public Service Centers or the EPIGU (Unified Interactive State Services Portal).
2. Privatization through Electronic Auction
   • Vacant land plots (not occupied by buildings and not allocated to other users) are sold via the “E-Auksion” platform.
   • The “Yerelektron” system is also used to generate land data and coordinate with authorized bodies.

Procedure of Privatization

The process includes several stages:

1. Submission of an application via Public Service Centers or the EPIGU portal;
2. Automatic verification of land rights and their legal compliance through “Yerxususiylashtirish” and the “Cadastre and Registration” systems;
3. Approval by cadastral and urban planning authorities for compliance with city development plans;
4. Payment of the privatization price, determined by a special formula based on cadastral value, base land tax rates, and topographic survey costs;
5. Issuance of a State Ownership Order through the “Yerxususiylashtirish” system;
6. Registration of property rights in the State Real Estate Cadastre.

Economic and Legal Aspects

• The privatization cost is calculated based on base land tax rates, land area, and additional cadastral expenses.
• Payments are distributed among budgets of different levels and special funds, including the Entrepreneurial Infrastructure Support Fund and the Compensation Fund for Citizens’ Property Losses.
• Privatized land plots can be used as collateral for bank loans, significantly enhancing investment potential.

Challenges

Despite positive progress, several issues remain:

• Imperfect urban planning documentation in some regions hinders privatization;
• Technical failures in electronic systems delay processing;
• Lack of public and business awareness about procedures necessitates further educational efforts.

Privatization of non-agricultural land plots in Uzbekistan is a crucial stage in developing a functional land market that promotes entrepreneurship, urbanization, and investment attractiveness. Improving the legal framework, expanding digitalization, and increasing public legal literacy will ensure more efficient land use and stronger ownership guarantees.

Forms and Procedures of Non-Agricultural Land Privatization in Uzbekistan

Criterion	Direct Privatization via “Yerxususiylashtirish”	Privatization via Auction “E-Auksion”
Legal Basis	Law “On Privatization of Non-Agricultural Land Plots”; Cabinet of Ministers Resolution No. 71 of 14.02.2022	Law “On Privatization of Non-Agricultural Land Plots”; Regulation on auction-based implementation
Eligible Participants	Citizens and legal entities possessing land under permanent use, lease, or lifelong inheritable possession	Any individuals and legal entities participating in e-bidding
Object of Privatization	Land plots already allocated to the applicant (leased or possessed)	Vacant land plots not occupied by buildings or assigned to others
Responsible Authorities and Systems	Public Service Centers; EPIGU portal; “Yerxususiylashtirish”; Cadastre and urban planning bodies	“E-Auksion” trading platform; “Yerelektron”; Cadastre and urban planning bodies
Procedure Stages	1. Application submission 2. Verification and approval 3. Payment 4. Issuance of ownership order 5. Registration	1. Lot formation 2. Information posting on “E-Auksion” 3. Bidding (price increase) 4. Payment by winner 5. Registration of ownership
Cost of Privatization	Calculated as: base tax rate × area + cadastral & surveying costs	Determined during auction (starting price = base rate; final price depends on demand)
Processing Time	10–30 working days depending on cadastral and payment procedures	5–15 working days after auction completion and payment
Financial Outcomes	Payments distributed among various budgets and funds	Auction proceeds go to the state budget and infrastructure development funds
Advantages	– Recognition of actual land user rights – Guaranteed ownership acquisition	– Full transparency through open bidding – Free participation and competition
Limitations	Existing land rights required; denial possible if inconsistent with urban plans	Not all land types available; certain categories (e.g., agricultural land) excluded