Uzbekistan Rental Income Guide 2026

Overview — Rental Income Tax in Uzbekistan

Rental income from letting or leasing immovable property (land and buildings) is chargeable to income tax in Uzbekistan. The tax treatment depends on whether the landlord is an individual or a legal entity. For individuals, rental income is included in total annual income and taxed at the flat 12% IIT rate. A standard deduction of 30% of gross rental income is available, meaning only 70% of gross rent is taxable. Landlords may elect to deduct actual expenses instead of the standard deduction if they maintain proper records. Corporate landlords include rental income in taxable profit at 15% CIT.

Individuals — 12% IIT on 70% of Gross Rent

For individual landlords, the effective rental income tax is calculated as follows:

• Gross rental income — total rent received during the tax year
• Standard deduction (30%) — automatically applied unless actual expenses are claimed
• Taxable rental income — 70% of gross rent
• IIT at 12% — on the taxable rental income
• Effective rate — 8.4% of gross rent (12% × 70%)

Rental income is declared in the annual IIT return filed by 1 April of the following year. The landlord is responsible for calculating and paying the tax. There is no withholding tax on rent paid to individuals in Uzbekistan.

Actual Expenses vs. Standard Deduction

Instead of the 30% standard deduction, individual landlords may elect to deduct actual expenses incurred in earning the rental income. Deductible expenses include:

• Repairs and maintenance (not capital improvements)
• Property management fees
• Insurance premiums
• Mortgage interest on loans used to acquire the property
• Property tax and land tax paid
• Utilities (if paid by landlord)
• Agency and legal fees for tenant acquisition

To claim actual deductions, the landlord must maintain proper books and records and submit supporting documentation with the tax return. The election must be made at the time of filing. The actual expense method is beneficial when expenses exceed 30% of gross rent.

Short-Term & Commercial Rentals

Short-term rentals (including Airbnb and holiday rentals) are subject to the same tax rules as long-term residential rentals. The 30% standard deduction applies. Income must be declared in the annual tax return. Commercial property rentals (office, retail, industrial) are also taxed at 12% for individuals and 15% for companies. Commercial tenants do not withhold tax — the landlord declares and pays. Lease agreements for commercial property may be subject to mandatory notarisation and registration with the cadastre authorities.

Vacant & Owner-Occupied Properties

Rental income is only taxable when the property is actually let. There is no deemed rental income for vacant or owner-occupied properties. However, property tax (building tax) and land tax continue to apply regardless of occupancy. If a property is let for only part of the year, only the rent received during that period is taxable. Expenses incurred during vacant periods (security, maintenance, insurance) are deductible if the actual expense method is used. Short gaps between tenants are generally treated as part of the rental business and expenses during these periods remain deductible.

FAQs

Who is responsible for paying tax on rental income?

The landlord is responsible for declaring rental income and paying the tax. Unlike some countries, Uzbekistan does not require tenants to withhold tax on rent paid to individual landlords.

Can I use the standard deduction if I have no expenses?

Yes, the 30% standard deduction is available regardless of actual expenses. This simplifies compliance for most landlords and is typically the preferred method.

Is rental income from foreign property taxable in Uzbekistan?

Yes, tax residents of Uzbekistan are taxed on worldwide income, including rental income from foreign property. Foreign tax credits may be available under DTTs to avoid double taxation.

Disclaimer

This guide provides general information about Uzbek rental income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Uzbek tax advisor or the State Tax Committee for advice specific to your situation. InvestmentKit does not provide tax advice.