Is it necessary to pay tax when selling a land plot?
Income tax may arise when selling a land plot. The tax amount depends on the selling price, the previous value of the land, and how long it has been held in ownership. If the land has been in your ownership for more than 36 months, no tax is paid. In the article, we will examine important details related to the purchase and sale of a land plot.
Is it necessary to pay tax when selling a land plot?
Tax rates, payment deadlines, and procedures regarding real estate purchase and sale are provided as of September 1, 2026. Legislation and bank service tariffs are subject to change.
Personal income tax is levied on the sale of a land plot.
A physical person's property income also includes income from the sale of property belonging to them. That is, land can only be sold if it has been privatized.
Income from the sale of property is determined as the excess of the sale price over its acquisition cost.
In this case, the acquisition cost of the property must be confirmed by documents. If such documents are not available, income from real estate is calculated as the positive difference between the sale price and the cadastral value.
Cadastral value is the official valuation determined by state authorities to establish the value of real estate.
Taxpayers of income tax include tax residents of Uzbekistan, as well as non-resident physical persons receiving income from sources in Uzbekistan. Therefore, when selling a land plot, personal income tax is paid by the seller.
If a land plot belonging to a physical person based on private property rights has been in their ownership for more than 36 months, tax is not paid on the income received from its sale, and filing a declaration is not required. This is established in Article 378 of the Tax Code. If the land plot has been owned for less than 36 months, the income from the sale is subject to taxation.
This rule applies whether the residential property and the land plot are sold together or separately.