Any tax/fee to pay to buy plot as overseas pakistani.

[gillani (Mr.Ahsan)]

According to the new taxation amendment on 30 july 2016, do i have to pay tax if i am buing a plot in islamabad for 6.5 million pkr.

I am an overseas pakistani and transfered my funds using UBL in dubai to my UBL account in pakistan.

I am clear about WHT and CGT as they are applicable when I will sell the plot. Here my question is about buying a plot. As per the agent, i only have to pay the following.

1- pay order fee

2-agent fee

3- society transfer fee

4- plot price to the seller.

Is there any thing else do i have to pay? as according to him I dont have to Pay any taxes at the time of purcahse.

I am travelling in 2 days time hence quick answer will be really appriciated.

[iqbilayy (Investor)]

Only when you sell

[bilalgqat (Bilal)]

@Mr Ashan, if possible you should wait for a few months before any buying in case you are investing for less than 3 years. This is not the best time to purchase. With the current market conditions, property prices may have at least 10-15% downward correction. If you plan to sell before 3 years, add taxes to that as well. Rest is up to you.

[gillani (Mr.Ahsan)]

Hi, thank you Bilal and Invester. One question though. In another thread they mentioned that the following is applicable on a buyer

CVT: 2%

Stamp-Duty:3%

Advance tax:2% for tax-filer & 4% for non filer.

So for 63 lac property, apprently i have to pay 2+3+4= 9% tax (Non File Overaseas)? which is approx 567,000. I spoke to the dealer in TopCity1 and he said if the sale is complete during this week there is no tax due.

Is it true or I am going into a trap?

[bilalgqat (Bilal)]

You should also add WHT tax 0.6% on valuation price, and ofcourse, please maintain some padding for “FBR Tax” in case they want to set up a trap.

[hazmalik_1 (AHMED)]

Bro its a trap, i highly recommend you to not buy in topcity1 as an overseas brother. Go for safer option and peace of mind. DHAI or Bahria Town only (in case of BT only go for phases/sectors whose allotment and possesion is already given)

[gillani (Mr.Ahsan)]

Thanks Ahmed. You made me worried. Can you please expla8n a bit how is it a trap. Is topcity1 is not legitimate society? I heard they have NoC from RDA and CAA. Also its there for 13 years and B block pocrssion has already been given. Also they are getting KH link.

I am getting worried as i am travelling today for just this purpose. Please can someone clear the situation asap.

[hazmalik_1 (AHMED)]

I just dont trust such societies… I dont have faith in them to deliver unlike dha or Bt… Also the quality of living in DHA and specially BT is as per overseas standards so thats why i recommend these… I have no interest otherwise as im not any agent, a fellow expat like you…

[bilalgqat (Bilal)]

Ahmed is right. There is a risk of some law being passed in the parliment to disallow housing societies up to a certain distance from the Airport. If that happens, your money is stuck. So it’s in the grey area. Previously there has been noise and effort made to stop progress close to the airport boundary wall. It’s a risk, who knows, nothing might happen, and prices may jump with airport construction. But if you are going in, beware of both the positives and negatives. Don’t just rely on the rosy pictures of only profits being spread around by people.