Hi..
There is limit of 5mln for non-filer to buy property, is this limit applicable for overseas pakistan as well as they are also non-filer.
I am overseas pakistani as well and i m a filer .
Yes this is for them however the process of becoming filer is very easy for the oversesas so you go to FBR website and check urself.
Dear Mushtaq sb, As an overseas you dont have to be filler to buy property in Pakistan. Also there is no limit on price of buying property. You can buy property more than 5 million. Howevver, it is easy to become filler, as you dont need to do much and just said you are non-resident and declare nothing.
The filler restriction is only for non-overseas people who wants to buy property more than 5 million only. Furthermore, if you are non-filer and non-overseas you can still buy property with DC rate below 5 million PKR.
I registered my self in 2007 and got NTN number but later i moved to abroad and since then i am settled in abroad . My question is can i buy land, vehicle as an overseas Pakistani on old NTN number or do i need to request fbr to modify my old NTN number ?
Dear Malik Sb,
If you have NTN (it does not matter when you got it) and you are filer (mean submitting tax return every year), then yes you can buy. NTN alone is not enough, you should be in the active tax payer list of FBR, and you can be in that list only by submitting your tax return every year. In my view everybody should do this as a responsible Pakistani.
However for non-residents (continuously living outside Pakistan for more than six months) , which you can prove with NICOP or other documents you dont need to be filer or have NTN to buy any property. But you may have to pay non-filer taxes when you buy property or car etc.
I hope it is clear for you.
Best regards
Thanks for the info.
Where i can have the official version, i mean any notification issued by FBR or Ministry of finance in which they have notified that OP can buy the over 5 million property while he is a non filer.
regards
For most definitive word on this, please read FBR's circular 06 of 2018 dated Oct 24 2018. Its section 3.(ii) on page 7 reads as follows:
"(ii) The restriction on purchase/transfer of immovable property having value exceeding Rs. 5 million by non-filters shall not apply to legal heirs acquiring property through inheritance. Moreover, as in the case of purchase of motor-vehicles the condition of being a filer shall not apply in respect of persons holding a Pakistan origin card or a national identity card for overseas Pakistanis who are able to produce a certificate from a scheduled bank verifying receipt of foreign exchange remitted from outside Pakistan through normal banking channels during a period of sixty days prior to the date of registering, recording or attesting transfer of immovable property valuing above Rs. 5 million."
So, in other words, it is not a totally free lunch for overseas Pakistanis.
Here is link to the FBR Circular:
http://download1.fbr.gov.pk/Docs/201810241410545507Circular06of2018.pdf
Just an update, The money transfer period of sixty days has been change in the budget presented in January 2019. Now there is no limit on days however you still need to prove the money has been sent to Pakistan via legal way.
Thank you very much for the info
What if an OP brings cash with him
Regards
Overseas Pakistani should always bring money through banking channels to show FBR trail of money. If you bring cash in you will have difficulty to prove money trail.
As long as you have any documentary evidence, i.e., Salary Certificate, Sale/Purchase deed or whatever relevant document that reflects that amount obtained in a legal way, all is ok to carry the cash from abroad to Pakistan or for that sake any other territory (unless there are some exception to law of a particular state).
One must confirm with the customs rules (as per the law of the land) on the limit of cash you can carry. Normally 10000 USD or less is all ok to carry undeclared. More than that one has to declare any excessive amount at the exit Airport to avoid later troublesome.
Yes Banks must be preferred to be on a safer side but as a matter of practical facts the time it can take for a transaction to go through, the transaction fee (sometimes at both banks) and the exchange rate is many a times a rip-off from the banks!
If one is non-resident and already paying taxes in the country of his/her residence he is not entitled to paying any tax to visiting destination or home state, provided that he is on a short term stay and not conducting any financial activities.
FBR is concerned with tax netting, if and whenever the situation arises, one's proof of residence abroad and source of income (with documentary evidence) is all safe and ok!
Can you please provide reference for this withdrawal of restriction on money transfer within sixty days prior to purchase as I have seen the amendment bill as well various tax commentaries on it but the restriction is still there?
If the restriction is still there than it means an overseas Pakistani cannot buy property if he doesn’t send money within 60 days through normal banking channel prior to the purchase of property? Plz confirm
Thanks for the info.
And last question, i have already own a property in pakistan, if i sell it, can i buy property from that money, because i have already funds in pakistan in the shape of property.
Regards
Dear Bilal,
you are correct they did not remove it. I had mistaken about it. I apologize for any inconvenience cause by it.
The DRAFT OF FINANCE SUPPLEMENTARY BILL, 2019 presented in January 2019 Seeks to amend section 227C (OF INCOME TAX ORDINANCE XLIX of 2001) to relax restriction for non-filers on purchase of locally manufactured motor vehicles up to 1300CC and to relax restriction on purchase of immovable property as well as locally manufactured vehicles for non-resident Pakistani citizens with following:
in clause (ii), after the word "Pakistanis", the words "or a non-resident Pakistani citizen holding international passport" shall be inserted;
After approval of this bill, overseas Pakistanis having international passport would be able to buy property in Pakistan WITHOUT being a FILER.
The complete text of bill is available:
https://dunyanews.tv/en/Pakistan/475631-Mini-Budget-Draft-Finance-Supplementary-Bill-2019
Shakoor, this clause does not cater to millions of non-resident Pakistanis who reside in gulf countries and do not hold international passport and yet earn and send home billions of dollars every year.
@isloo
Interesting observation but I think even those who don’t have foreign passport still have NICOPs
Do U have any info on if someone lives abroad as a resident only also spends time in Pak and doesnt apply for NICOP and just uses cnic, will that person be considered an overseas Pakistani ? And is it in anyway illegal not to declare urself as overseas Pakistani?
@YC, no, it is not illegal for Pakistanis who frequently spend time in Pakistan and overseas to hold either card, CNIC or NICOP.
Your second question is not clear, as why would a Pakistani be required to declare as OP?
As far as I know Nadra is only issuing Nicop cards to Pakistanis with dual nationalities if you apply/renew your Nadra card from outside Pakistan. I thought both the CNIC and Nicop are one and the same with Nicop being used to identify people with dual nationalities.