Overview
Nov 20, 2007
Bangladesh (pop. 157,659,000; GDP/cap US$439) is situated between India and Burma in Southeast Asia.For the fifth straight year, Bangladesh has topped the most corrupt countries list. In Transparency International's 2005 Corruption Perceptions Index, Bangladesh ties with Chad in hitting the top slot.
Bangladesh is the 7th most populous country in the world, and its population density 1,061 people per square kilometer is the highest of any developing country.
Regulation impedes foreign investment. Starting a business in Bangladesh is difficult. Foreigners often find that ministries require unnecessary licenses and permissions. Land registration records are unreliable. Real property is not well-protected. In spite of all this, the government encourages real estate investors to develop flats and condos instead of individual houses, most especially in the city, because of scarcity of land.
Analysis
of Bangladesh Residential Property Market »
Income tax is high in Bangladesh
Rental Income: Rental income earned by nonresidents is taxed at a flat rate of 30%.
Capital Gains: Capital gains earned by nonresidents are taxed at a flat rate of 30%.
Properties held for more than five years prior to the sale may be subject to a special flat tax rate of 15%, if this method yields a lower tax liability.
Inheritance: There are no inheritance taxes in Bangladesh.
Residents: Residents are taxed on their worldwide income at progressive rates, up to 30%.
Buying costs are low
Property transaction costs are low at around 9.5% of the property value. The buyer pays for the capital gains tax (5%), local government tax (2%), and registration tax (2.5%).
Buying costs are low
Property transaction costs are low at around 6% of the property value. The buyer pays for the stamp duty (3%), local government tax (1%), and registration tax (2%).