Property tax obligations for non-residents

Living abroad does not exempt you from Pakistani property taxes, and unpaid tax is a common reason a transfer is blocked years later.

What applies while you hold the property

• Provincial property tax on urban property, assessed annually by the Excise and Taxation department
• Society maintenance and service charges, which are contractual rather than tax
• Non-construction penalties where the society imposes them

What applies on transaction

• Withholding tax on purchase and on sale, at rates that differ for filers and non-filers
• Capital value tax and stamp duty on registration
• Capital gains tax on sale, depending on holding period

TWO THINGS WORTH DOING NOW Become a filer. The difference in withholding rates between filer and non-filer is substantial, and overseas Pakistanis are frequently taxed at the higher rate simply for never having registered. Route purchase money through a Roshan Digital Account. It creates the documented trail that protects your right to repatriate the principal and any gain when you eventually sell.

Rates change every budget. Confirm current rates with a tax practitioner before any transaction rather than relying on any published figure.