08/07/2022 - 17:54 4446

For Uzbekistan, at the present stage of economic reforms, one of the priority tasks is to increase the role of private property in the economy, strengthen the guarantees of the rights of owners.

With the adoption of the Law of the Republic of Uzbekistan "On Privatization of non-agricultural land plots", the institute of private ownership of non-agricultural land plots has been introduced, which is the basis for improving existing land relations and the formation of the land market in Uzbekistan.

In order to implement the adopted Law and create effective mechanisms for the privatization of land plots, Resolution No. 71 of the Cabinet of Ministers of the Republic of Uzbekistan dated February 14, 2022 was adopted in February of this year.

When developing mechanisms for the privatization of land plots, the results of the legal experiment conducted in 2020 – 2021 on the privatization of land in the Syrdarya region, as well as suggestions and recommendations of experts from the World Bank, the Asian Development Bank and other international financial institutions were taken into account.

It should be noted that not all land plots can be objects of privatization. For example, land plots on which mineral deposits are located, occupied and adjacent to apartment buildings, as well as land plots that are part of environmental, health, recreational, historical and cultural lands, as well as lands of forest and water funds are not subject to privatization.

Also, the privatization of land plots by foreign citizens, stateless persons, foreign legal entities and enterprises with foreign investments is not allowed.

Depending on the status of the land plot (free or unfree land plot), privatization is carried out in two forms:

purchase by legal entities and citizens of the Republic of Uzbekistan of land plots belonging to them on the rights of permanent use (possession), lifelong inherited possession or lease;

purchase of a vacant land plot through an electronic online auction.

The purchase of land plots is carried out by submitting an application for the provision of public services for the privatization of a land plot in turnout through Public Service Centers or remotely through a Single portal of interactive public services. For the provision of public services, a fee of 10% of the base calculated amount established on the day of filing the application is charged.

The received applications are considered by the district (city) branches of the Chamber of State Cadastres within 5 and construction departments within 3 working days. As a result of the consideration of applications, appropriate notifications with positive or negative decisions are sent to applicants.

In case of a positive decision, the applicant is invited to pay the purchase price of the privatized land plot within 10 working days.

It should be noted that the purchase price of the privatized land plot is calculated based on the 20-fold base rate of land tax, taking into account the costs of registering ownership of the land plot and the costs of preparing a topographic plan (if necessary).

For example, in the city of Tashkent, 4 acres of land, depending on the tax zone, will cost citizens of the Republic of Uzbekistan from 4.3 to 11 million soums, legal entities – from 37.4 to 177.4 million soums. In Samarkand, to buy a plot of land with an area of 4 acres for an individual residential building will amount to 2.9 million soums, and for legal entities – 29.4 million soums.

After timely and full payment of the purchase price, a state warrant for ownership of the land plot is automatically issued in the name of the applicant and within 2 working days the registration of ownership rights is carried out in accordance with the established procedure.

The grounds for refusal to privatize a land plot are:

the absence of grounds for the privatization of land plots provided for by the legislation on the privatization of land plots.

the presence in the approved general plans of settlements, detailed planning projects of parts of the settlement and other urban planning documents of information directly impeding the privatization of land plots;

the presence of decisions of the Jocargy Kenes of the Republic of Karakalpakstan, the Kengashes of People's Deputies of the regions and the city of Tashkent on the seizure of land for public needs, adopted before the application was submitted;

the presence of pending court proceedings in relation to the privatized land plot;

the presence of a ban or arrest imposed on real estate objects located on the privatized land plot;

the presence of a ban on the sale or other alienation of the privatized land plot;

detection of false, contradictory or distorted information in the application;

non-implementation or incomplete implementation of the payment of the redemption value of the privatized land plot.

In case of elimination of the reasons that served as the basis for refusal to privatize the land plot, the applicant has the right to re-submit the application without paying the fee for the provision of public services within one month from the date of receipt of the refusal.

The second form of land privatization is the purchase of vacant land plots through an electronic online auction. The privatization of vacant land plots is carried out through the electronic trading platform "E-AUKSION", which provides a transparent process and equal access to the auction for all potential buyers.

On this electronic trading platform, vacant plots are exposed both for business activities and for individual housing construction, indicating the starting price, area, as well as all conditions for the use of the land plot. It is important to note that land plots are put up for auction without establishing investment or other obligations limiting the free disposal of private property.

It should be noted that when privatizing a land plot at auction, it is possible to pay its value in installments for 3 years.

The funds received from the privatization of land plots will be directed to the construction and reconstruction of engineering and communication infrastructure (gas, energy and water supply) those localities where the land plot was sold into ownership.

It is important to note that land owners receive additional opportunities and guarantees, in particular:

they have the right to freely own, use and dispose of a privatized land plot at their discretion and in their own interests, including using it as a collateral, contributing to the authorized capital (authorized fund) of a legal entity, and leasing it;

privatized land plots are private property, and the right of private property is inviolable and protected by the state in accordance with the law;

the seizure of privatized land plots for public and state needs is not allowed.

Information service of the

Ministry of Economic Development and Poverty Reduction