Guide to Property Taxes in Bangladesh
Tax Rate on Rental Income |
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Monthly Income | $1,500 | $6,000 | $12,000 |
Tax Rate | 30.00% | 30.00% | 30.00% |
Nonresidents are taxed on their Bangladesh-sourced income.
Rental Income Tax
Rental income earned by nonresident individuals is taxed at a flat rate of 30%.
Capital Gains Tax
Taxable capital gains are calculated by deducting acquisition costs and related expenses from the sale proceeds.
Nonresidents realizing capital gains from the sale of property in Bangladesh are generally taxed at a flat rate of 30%.
Properties held for more than five years prior to the sale are subject to a special flat tax rate of 15%.
Property Tax
Property tax is levied on all properties in Bangladesh. Property tax is administered and collected by the local land revenue office. Property tax rates vary by location and property classification.
Corporate Tax
Income and capital gains earned by companies are generally taxed at various rates. Applicable income tax rates actually vary depending on the classification of the company and the type of income or capital gains. Taxable income is computed by deducting income-generating expenses from the gross profits. For one-person companies, the tax rate is 20-22.50% and for non-publicly traded companies the rate is 25-27.50%
Property Buying Costs and Taxes in Bangladesh
Transaction Costs |
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Who Pays? | ||
Transfer tax | 3.5 - 4.5% | buyer |
Notary fees | 1.50- 2.00% | buyer |
Legal fees | 0.20% - 1.00% | buyer |
Real Estate Agent Fee | 5.00% - 6.00% | seller |
Total costs paid by the buyer: | 5.20% - 7.50% | |
Total costs paid by the seller: | 5.00% - 6.00% | |
ROUNDTRIP TRANSACTION COSTS | 10.20% - 13.50% | |
Source: Global Property Guide |