Property Transfer Fee Structure in Gulberg Islamabad

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Property Transfer fees in Gulberg Islamabad

Property sale and purchase is perceived as a straightforward and effortless process in Pakistan particularly by the buyers and sellers who do not have any significant prior experience in it. However, ground realities are far from what is apparent. There are property transfer fee and taxes in Pakistan that you might be unaware of, apart from the booking price agreed between buying and selling parties.

It is advisable to have a comprehensive knowledge on each of the taxes and fees that you would be obliged to pay while purchasing or selling a piece of land. This article shares all that you need to know about property transfer fee in Gulberg Islamabad.

There are primarily five types of fee and taxes that need to be paid for plot transfer.

Property Transfer Fee

Buyer needs to produce original deposit slip of transfer fee along with other documents for plot transfer. The transfer fee in Gulberg Islamabad is Rs.50,000 per Kanal. Thus, the fee for 4, 5 and 10 Kanal plots is following:

  • 4 Kanal = 200,000
  • 5 Kanal = 250,000
  • 10 Kanal = 500,000

CVT paid by buyer to government

The Federal Government of Pakistan has imposed a tax called Capital Value Tax (CVT) on static property in Islamabad. Thus, purchasing a plot, house, flat, shop or any other immovable property requires you to pay CVT. Following is the CVT breakdown for filers and non-filers.

  • Advance Tax for Filers: 1% of the total value of plot
  • Advance Tax for Non-Filer: 2% of the total value of plot.

Capital Gains Tax

Unlike other taxes, Capital Gains Tax (CGT) has to be paid by the seller of an immovable property. This tax is exercised only when a property is sold within three years of its purchase. It is applicable to the profits made out of selling the property.

Moreover, CGT varies in the three years after the purchase. The tax would be 10% if the property is sold in the first year of purchase and 7.5% in the following year. The seller has to pay 5% if sold in the third year. Once the three years are over, this tax is no longer applicable and the seller does not need to pay it. The amount of property transfer fee varies for filers and non-filers. Former has to be 1% while latter pays 2%.

A Brief Recap

Gulberg Islamabad is one of the most sought-after areas for building commercial and residential property assets. It is no less than a major accomplishment to own a property in such a lucrative locality. However, buyers and sellers mostly fail to estimate the amount of taxes and fee that they would need to pay apart from the actual value of the plot. Amigo Estate assists you at every step of the property sale purchase process

To recapitulate the tax and fee structure for sales and purchases of plots, buyer of the plot has to pay three varying kinds of taxes whereas seller pays a tax if the property is sold within three years of its purchase. Besides, the amount of tax in cases of CVT, AIT and CGT varies depending on whether the payer is a filer or not. The variation is 1% and 2% for filers and non-filers, respectively in each case. Apart from these taxes, the buyer is also bound to pay the property transfer fee.

Amigo Estate wants to become your prime partner in property dealing. Contact us today to explore the opportunities.

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