Pakistan property tax just got
much harder to ignore.
FBR has significantly intensified property tax enforcement from 2023–2026. Cross-referencing NADRA property registrations with income tax returns is now automated. Every major property transaction is visible — and mismatches trigger notices.
2024–2026 FBR property enforcement actions
- Automated matching of property registration data (NADRA/provincial) with FBR return data
- Section 111 notices issued where property value exceeds declared income by 20%+
- Non-filer surcharge doubled on property advance tax (3% → 6% for buyers)
- FBR property valuation tables updated — gap between DC value and market value narrowed
- FATF compliance requirement: large property transactions now require source-of-funds documentation
Key property tax numbers
How long you hold determines how much you pay.
Pakistan CGT on immovable property (FY 2025-26). The longer you hold, the lower the rate — designed to discourage short-term speculation.
| Holding Period | CGT Rate | Tax on PKR 1 crore gain | Notes |
|---|---|---|---|
| Less than 1 year | 15% | PKR 15,00,000 | Maximum rate — short-term flipping |
| 1 to 2 years | 10% | PKR 10,00,000 | Still significant — hold longer |
| 2 to 3 years | 7.5% | PKR 7,50,000 | Mid-term investment |
| 3 to 4 years | 5% | PKR 5,00,000 | Long-term investment |
| 4 to 5 years | 2.5% | PKR 2,50,000 | Near full exemption |
| 5 years or more | 0% | Nil | Fully exempt — long-term hold |
* Open plots may have different slab thresholds. Consult a tax advisor for your specific asset class and registration date.
What you pay at the registration office.
Advance tax on seller
Withheld at the sub-registrar at the time of property transfer. Based on higher of FBR notified value or transaction value.
Advance tax on buyer
Applies to properties above PKR 4 million at registration. Buyer pays at time of transfer. Also adjustable in annual return.
Rental income tax
Annual rental income declared in your return. Deductions allowed for repairs (20% of rent), insurance, and mortgage interest.
Property in wealth statement
All properties must be declared in your annual wealth statement. Undisclosed property = Section 111 risk. FBR now cross-checks against provincial registration data.
Every property transaction handled correctly.
Pre-sale CGT calculation
Before you register the transfer, we calculate your exact CGT liability using the FBR valuation table vs. actual price. No surprises at the registration office.
Advance tax recovery
The 236C and 236K taxes paid at registration are adjustable. We include them in your annual return and recover the excess against your final liability.
Rental income return
Annual tax return filing for landlords — all rental income with correct deductions (repairs, insurance, mortgage interest). Correct filing prevents WHT deductions from building into a liability.
Wealth statement — property
All properties declared in your wealth statement at correct values. Protects you from Section 111 (undisclosed assets) notices as FBR's NADRA data matching intensifies.
Source of funds documentation
For large property purchases, FBR may request source-of-funds evidence. We prepare the documentation trail — salary, business income, remittances, savings — so you can demonstrate compliant acquisition.
FBR notice response
Property-related FBR notices (Section 111 for unexplained acquisition, 122 for amended assessment) handled end-to-end. We respond, document, and negotiate before assessments become final.
Answered without the jargon.
Get your property tax right
before FBR notices you didn't.
CGT calculation, advance tax recovery, wealth statement, rental income returns — we handle the complete property tax picture so nothing falls through the cracks.