Tax on Selling an Apartment: When to Pay and How Much

When there is no tax

• the apartment or house has been owned for 36 calendar months or more (Article 378 of the Tax Code);
• the sale is at a price not exceeding the documented purchase cost — there is no income (Article 375).

When tax is due and how the income is calculated

• housing owned for less than 36 months, and any non-residential premises (Article 378);
• income is the excess of the sale price over the documented acquisition cost (Article 375);
• if the purchase cost is not supported by documents, for real estate the income is the positive difference between the sale price and the cadastral value (Article 375);
• the personal income tax (PIT) rate for a resident is 12% (Article 381).

Example

• An apartment was bought for UZS 600,000,000 (there is a contract) and sold two years later for UZS 800,000,000.
• Income: 800,000,000 − 600,000,000 = UZS 200,000,000.
• PIT: 200,000,000 × 12% = UZS 24,000,000.
• Had the apartment been owned for 36 months or more, there would be no tax.

Tax return and deadlines

• Property income from which tax has not been withheld by a tax agent must be declared (Article 393).
• The annual aggregate income return is filed with the tax authority at the place of residence no later than 1 April of the year following the year of sale (Article 397).
• Tax under the return is paid no later than 1 June of the same year (Article 398).

Gifts and inheritance

Real estate received as a gift or inheritance from close relatives is not taxed; from persons who are not close relatives, it is taxed (Article 378).