Buying or selling property in Pakistan involves certain taxes and transfer charges under the Income Tax Ordinance. For Overseas Pakistanis, understanding the applicable tax on the sale or purchase of immovable property is especially important before completing a property transaction.
At Ghandhara Estate, we assist Overseas Pakistanis, Pakistani residents, and property owners with property sale, purchase, transfer, family transfers, and documentation in Islamabad, Rawalpindi and surrounding areas.
Valuation Of Immovable Properties rates in Islamabad
Tax on Sale of Immovable Property – Section 236C
The tax collected on the sale or transfer of immovable property is commonly referred to as tax under Section 236C.
Tax Code: 64150301 – Sale / Transfer of Immovable Property u/s 236C
For tax purposes, sellers generally fall into two broad categories:
1. Resident Pakistani
A Pakistani national who is treated as a resident for tax purposes.
2. Non-Resident
This may include an Overseas Pakistani or a foreign national, depending on their tax and residency status.
Tax Rate for Active Tax Filers and Eligible Overseas Pakistanis
For Pakistani Active Tax Filers and Overseas Pakistanis holding a valid NICOP or POC, the applicable tax rate on the sale/transfer of property may be 2.75%, subject to the applicable tax rules and transaction circumstances.
Tax on Purchase of Immovable Property – Section 236K
The tax collected from the buyer on the purchase or transfer of immovable property is commonly referred to as tax under Section 236K.
Tax Code: 64151101 – Purchase / Transfer of Immovable Property u/s 236K
Buyers may generally fall into the following categories:
1. Resident Pakistani
A Pakistani national who is treated as a resident for tax purposes.
2. Non-Resident
This may include an Overseas Pakistani or foreign national, depending on their tax and residency status.
Tax Rate for Active Tax Filers and Eligible Overseas Pakistanis
For Pakistani Active Tax Filers and Overseas Pakistanis holding a valid NICOP or POC, the applicable tax rate on the purchase/transfer of property may be 1.25%, subject to the applicable tax rules and transaction circumstances.
Why Overseas Pakistanis Should Check Property Taxes Before Buying or Selling
Property transactions can involve more than the agreed purchase or sale price. Before completing a transaction, it is important to understand:
- Applicable withholding taxes
- FBR tax filer status
- NICOP or POC eligibility
- Property valuation and transaction value
- Transfer and registration charges
- Capital gains tax, where applicable
- Documentation and ownership requirements
- Family or legal-heir property transfers
- Bank/payment documentation for the transaction
Tax rates and eligibility requirements can change through Finance Acts, FBR notifications and amendments to tax law. Therefore, the applicable rate should always be verified at the time of the transaction.
Ghandhara Estate – Property Assistance for Overseas Pakistanis
Managing property in Pakistan from overseas can be challenging. Ghandhara Estate provides assistance to Overseas Pakistanis and local clients with property transactions, including:
Sale of Property
Assistance with the sale and transfer of residential, commercial and land properties.
Purchase of Property
Assistance in identifying and purchasing suitable property with proper transaction and documentation support.
Property Transfer
Assistance with property transfer procedures and related documentation.
Family Transfer of Property
Assistance with property transfers within families, including documentation and coordination.
Sale & Transfer of Property
Support for owners who want to sell their property and complete the required transfer process.
Purchase & Transfer of Property
Assistance for buyers throughout the purchase and transfer process.
Looking to Buy or Sell Property in Pakistan?
If you are an Overseas Pakistani looking to buy, sell or transfer property in Islamabad or Rawalpindi, Ghandhara Estate can help you navigate the transaction process and coordinate the necessary property and documentation requirements.
Waseem Khan
Ghandhara Estate – Real Estate Consultants
📞 0300-9568645
Tax rates and applicable rules are subject to Pakistani tax laws and may change. This article is for general information only and should not be treated as tax or legal advice. Buyers and sellers should confirm the applicable taxes with FBR or a qualified tax professional before completing a transaction.
