Uzbekistan Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

Uzbekistan has a tax-efficient regime for wealth transfer: there is no inheritance tax, no estate duty, and no death tax on assets transferred upon death. Lifetime gifts may be subject to income tax in certain circumstances. The absence of inheritance tax makes Uzbekistan attractive for holding assets, though other tax considerations apply. The tax treatment of gifts is governed by the Tax Code of Uzbekistan. Upon death, there is no deemed disposal of assets for CGT purposes — the heir inherits the value at the date of death (step-up in basis to market value).

Gift Tax — 12% IIT on Large Gifts

Gifts made during the donor's lifetime may be subject to personal income tax at 12% if the value of the gift exceeds the prescribed threshold. Key rules:

• Family exemption — gifts between spouses, parents, children, and grandparents are exempt from gift tax
• Threshold — gifts up to approximately UZS 50 million per year from non-family members are exempt
• Tax rate — 12% IIT on the market value of the gift exceeding the threshold
• Donor pays — the person making the gift is responsible for reporting and paying the tax
• Cash gifts — large cash gifts to non-family members may be subject to tax
• Charitable gifts — gifts to registered charitable organisations are exempt

Inheritance — No Tax on Death

Assets received upon death are not subject to inheritance tax in Uzbekistan. The beneficiary receives the asset at its market value at the date of death. This step-up in basis means that if the heir sells the asset immediately, there is no capital gain. However, if the asset appreciates after the date of death, the gain from the stepped-up basis is taxable. The absence of inheritance tax makes Uzbekistan a favourable jurisdiction for holding assets that are likely to appreciate. However, estate administration costs (notary fees, court fees) still apply.

Intestate Succession — Civil Code

If a person dies without a will (intestate), the distribution of their estate is governed by the Civil Code of Uzbekistan. The estate is divided among heirs by law in the following order:

• First priority — spouse, children (including adopted), and parents of the deceased (equal shares)
• Second priority — siblings and grandparents (if no first-priority heirs exist)
• Third priority — uncles, aunts, and other relatives

The spouse receives at least half of the estate regardless of other heirs. Children born out of wedlock have equal inheritance rights. Disabled dependents are entitled to a compulsory share regardless of the will.

Wills & Probate

Having a valid will is the most effective way to ensure assets pass according to the deceased's wishes. A will must be in writing and notarised in Uzbekistan. Foreign nationals may also execute a will covering their Uzbek assets. The will should appoint an executor. Probate is the legal process of recognising the will and granting the executor authority to distribute assets. The process involves applying to the notary office with the will, death certificate, and inventory of assets. Notary fees for probate are typically 0.5-2% of the estate value. Foreign wills may be recognised in Uzbekistan but must be apostilled or legalised and translated into Uzbek or Russian.

FAQs

Do I need to pay tax on inherited property if I sell it?

Yes, if you sell inherited property, the gain (sale price minus the stepped-up basis at date of death) is taxable at 12% IIT for individuals or 15% CIT for companies. If you sell immediately at the inherited value, no tax is due.

Is there a way to avoid gift tax when transferring assets to family?

Yes, gifts to spouse, parents, children, and grandparents are fully exempt from gift tax. For other relatives, the annual exemption threshold applies. Structured sales or loans may also be considered but have legal and tax implications.

Does Uzbekistan recognise foreign wills?

Foreign wills may be recognised if properly legalised or apostilled and translated. It is generally advisable to execute a separate notarised will in Uzbekistan specifically covering assets located in the country.

Disclaimer

This guide provides general information about Uzbek inheritance and gift tax for the 2026 tax year. Succession law is complex. Always consult with a qualified Uzbek lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.