Property Tax for Overseas Pakistani 2024
With increasing real estate value in Pakistan, the government has taken steps to minimise the procedural conditions on property tax for overseas Pakistanis willing to invest. The Federal Board of Revenue (FBR) has announced tax exemption for non-resident Pakistanis.
FBR Property Tax for Overseas Pakistani
In 2022, the Pakistani government introduced section 7E of the Income Tax Ordinance 2001, targeting immovable property tax. Through the issuance of circular number 3 of 2023, the many procedural conditions of section 7E stated several exemptions in capital gains, attracting more foreign investors in the country.
According to the 2023 tax laws for the property, which were implemented according to the current market valuation and the time exchange rate,
FBR has also mentioned in their circular number 3 for section 7E that this ordinance does not apply to immovable property owned by the local authority, developmental authority, builders, and developers of land constructions.
Benefits of Exempting Advance Tax for Overseas Pakistani
Though certain conditions and procedural requirements still need ironing out, the government’s new tax exemption has made real estate investment more profitable, attracting global investors. The new tax rule has increased Pakistan’s real estate value many folds, providing more lucrative returns to investors.
Frequently Asked Questions
Only advanced property tax is payable at their transfer of immovable property. Afterwards, they are exempted from paying any tax on immovable property.
In the first year, when the property is transferred to the applicable name, the Section 7E provisions are not applied.
Developers, local authorities, and land builders are not exempted from the tax exemption section provisions.
The government has taken myriad steps to increase real estate value, including exempting overseas Pakistanis from paying any additional tax except the advanced tax when transferring property.