Buying or selling property in Pakistan triggers several taxes: advance tax at purchase, advance tax and capital gains tax (CGT) at sale, plus stamp duty at provincial level. This guide explains the CGT holding-period slabs and the key advance-tax sections so you can estimate your liability. Pair it with our CGT calculator.
Salaried slabs verified: Finance Act 2026 (Finance Bill 2026-27 passed National Assembly, June 2026). Business income slabs, withholding rates, and deadlines: confirm with a consultant or at fbr.gov.pk before filing. Individual figures still flagged [VERIFY] where not yet confirmed.
What Taxes Apply to Property?
- Advance tax on purchase (section 236K) — paid by the buyer. [VERIFY]
- Advance tax on sale (section 236C) — paid by the seller. [VERIFY]
- Capital Gains Tax (CGT) — on the gain, by holding period.
- Provincial stamp duty & CVT — varies by province.
Capital Gains Tax by Holding Period
CGT on immovable property is tapered by how long you held it — longer holding, lower rate, reaching 0% after the maximum holding period. The slabs below match our calculator. [VERIFY: Finance Act 2026 CGT schedule]
| Holding Period | CGT Rate |
|---|---|
| Properties acquired on/after 1 July 2024 — holding period abolished (Finance Act 2024) | |
| Any holding period | 15% flat (filers) [VERIFY: non-filer progressive schedule] |
| Pre-July 2024 acquisitions — old holding-period rates may apply [VERIFY] | |
How is capital gains tax on property calculated in Pakistan?
CGT is charged on the gain (sale price minus purchase price) at a rate that decreases with the holding period — from 15% within the first year down to 0% after six years. [VERIFY: Finance Act 2026]
Holding period is everything for property CGT. Selling a few months before crossing into the next holding band can cost you several percentage points on the entire gain. Before you sign, calculate the date at which your rate steps down — sometimes waiting weeks saves lakhs. [VERIFY: CGT slabs]
Advance Tax at Purchase & Sale
Buyers pay advance tax under 236K and sellers under 236C, both at higher rates for non-filers. These are adjustable against your final tax liability when you file. [VERIFY]
Exemptions & Reliefs
Certain transfers (e.g. to legal heirs, gifts within family) and long-held property may attract relief or 0% CGT. Confirm eligibility before relying on an exemption. [VERIFY]