Overseas Pakistanis who own, buy, or sell property in Pakistan have specific tax obligations. This guide covers all property taxes applicable in 2026 - from withholding tax on purchase to capital gains tax on sale and rental income tax. Kamboh Associates handles all property tax compliance for overseas Pakistanis completely remotely.
Property Taxes for Overseas Pakistanis in Pakistan
Pakistani property transactions attract multiple taxes regardless of whether the buyer or seller is resident or overseas. Understanding these taxes helps overseas Pakistanis plan transactions and avoid unexpected costs. The key difference between a filer and non-filer can mean significant savings - particularly on purchase and sale WHT rates.
Property Tax Summary for Overseas Pakistanis
| Tax Type | Rate (Filer) | Rate (Non-Filer) | Who Pays |
|---|---|---|---|
| WHT on Purchase (Section 236K) | 3% | 6% | Buyer |
| WHT on Sale (Section 236C) | 3% | 6% | Seller |
| Capital Gains Tax (held 1-2 yrs) | 15% | 15% | Seller |
| Capital Gains Tax (held 2-4 yrs) | 10% | 10% | Seller |
| Capital Gains Tax (held 4+ yrs) | 0% | 0% | None |
| Rental Income Tax | Slab rates | Higher rates | Owner |
Filer Saves Big: On a Rs 15 million property purchase, filer status saves Rs 450,000 in WHT (3% vs 6%). Filing a simple nil return costs Rs 3,500 and can save hundreds of thousands. Always become a filer before any property transaction.
Rental Income Tax for Overseas Pakistanis
If you own property in Pakistan and earn rental income - even while living abroad - that rental income is taxable in Pakistan. You must file an annual return declaring the rental income. The tenant may be required to deduct 10% WHT on rent payments; this is adjustable against your tax liability.
- Rental income is taxable at progressive individual rates
- Annual return must be filed by 30 September
- All rental receipts and expenses should be documented
- Allowable deductions: repairs (20% of rent), property tax paid
Our Property Tax Services
| Service | Price | Timeline |
|---|---|---|
| NTN + Filer Status (nil return) | From Rs 5,000 | 24-48 hours |
| Property Income Tax Return | From Rs 5,000 | 1-2 days |
| Capital Gains Computation | From Rs 5,000 | 2-3 days |
| Wealth Statement (with property) | From Rs 5,000 | 2-3 days |
Property Tax Help for Overseas Pakistanis
Planning to buy or sell property in Pakistan? WhatsApp 0328-4675162 for a free consultation. We handle everything remotely.