Real Estate Tax in Uzbekistan is Now Calculated Based on Market Value

The procedure for determining the tax base for real estate and certain goods in Uzbekistan is being updated. These changes aim to popularize non-cash payments, reduce the shadow economy, and prevent artificially low or high market prices.

In accordance with a decree signed by the President on December 10, 2025, it was envisioned that starting January 1, 2026, the tax base for real estate and construction materials would be determined based on market value. Consequently, on May 18, 2026, the Cabinet of Ministers approved the regulation 'On the procedure for determining the tax base based on the market price of certain goods'.

This regulation establishes the procedure for determining the tax base for real estate objects and wood products based on market value, in accordance with the Tax Code.

The new procedure applies in cases where the price reflected in the sales documents by taxpayers is 20 percent lower or higher than the market price. That is, if the price indicated in the contract differs significantly from the real market value, tax authorities have the right to recalculate it.

According to the regulation, tax authorities use the comparable market price method to determine the tax base. The market value of real estate objects is determined by a specially authorized body in the field of mass real estate valuation.

Tax authorities may also use various information sources to determine the market price. These include the unified automated information system of the notary, auction and public procurement platforms, sellers' price lists, and other data.

The market price for wood products is calculated based on the prices of identical or similar types of goods sold in exchange trading.

A hypothetical example provided in the resolution shows how the new procedure works. For instance, it was documented that a newly built residential property in the Mirzo Ulugbek district of Tashkent was sold for 1.07 million soums per square meter. The total area was 216.04 square meters, and the contract value was 231.2 million soums.

However, the average market price for newly built real estate in that area was determined to be 6.1 million soums per square meter. In this case, the official sale price differs from the market price by much more than 20 percent. Therefore, the tax base is calculated not from the 231.2 million soums in the contract, but based on the market value — 1 billion 317.8 million soums.

As a result, the understated tax base amounted to 1 billion 86.6 million soums. Additional VAT and profit tax are calculated on this difference. In the example, the total additional tax amount was 244.5 million soums.

This procedure serves to reduce cases of artificially lowering prices in the sale of real estate and certain goods. At the same time, it aims to ensure the full and fair receipt of tax revenues to the state budget.

In short, the new regulation poses a serious obstacle to the practice of showing one price on paper and another in reality. In real estate sales, not only the number in the contract but also the real market price will now be important. The tax system is moving towards transparency — it is time to use both the calculator and conscience correctly.