Reading time: 2 minutes, Category: Property Trends
Are you an expat looking to purchase property in BD? BestBari is here to help, we are a leading online real estate company in Bangladesh with plenty of high-quality flats for sale in Dhaka.
The rules around foreign nationals buying into BD property can seem quite confusing. To help you make the right choice, learn about the rules and regulations here. This article published by BestBari and discusses purchasing property by foreign investors.
As one of the fastest-growing economies in Asia today, Bangladesh is a rapidly growing country. The massive real estate industry is backed up by the growth and development of new commercial opportunities nationwide. This has naturally seen a lot of interest in property purchases both from local investors and those from afar. With that in mind, though, you might run into an issue around foreign ownership of property.
So, can foreigners buyBD property? Can you invest in a flat, home, and/or commercial venue? Let us look at what the rules and regulations say about foreign ownership of property in Bangladesh at the time of writing.
Can foreigners buy BD property?
Like many rules regarding foreign investment in Bangladesh, the rules need to be clarified. If you read one guide, it can entirely contradict what another says. So, the simplest thing is to say maybe.
Speak to three different local professionals, and they will give you three other legal answers as to whether (or not) you can buy BD property as a foreigner. The majority of the information regarding property ownership is contained within the Transfer of Property Act and the Registration Act, two backbones of the Bangladesh property market in a legal sense.
These legislative guides make no mention of non-citizens or foreign ownership. As such, if you go entirely on the wording of these legislative acts, there is nothing to stop the ownership of Bangladeshi land by a foreign national. That being said, things are more complex than this!
The complications around property ownership for foreigners
Typically, the only real place that a foreign national is ‘permitted’ to buy a property is to buy flats for sale in Dhaka – and they must stay here as a resident. It cannot be rented out. The property must also:
- Need to be approved for sale by the Bangladesh Board of Investment
- Be paid for in full using the foreign currency of the nation making the purchase
- Located in an ‘approved area’ – which is typically major cities such as Dhaka
You could also buy property under the name of a business, as this circumvents many of the property regulations we have mentioned so far. That being said, this can become a legal headache and lead to issues if you are found to be starting up a business purely for property ownership.
What about taxation? This is equally confusing. Given there is no strict legislation to differentiate between foreign and local ownership, it is unlikely that you would be subject to different taxes than a local buyer. You will be paying a 10% tax to the government on the full price of the property, and any rental income you receive will be taxed at around 30% – the same as a local buyer.
Making the right decision on buying property in BD as a foreigner
With the above information, you can see that there needs to be more clarity regarding what you can and cannot buy. You must work with a legal professional and a Bangladesh realtor if you want to avoid running into damaging issues. You will also need to provide legal proof of yourself – including your passport, your tax number, and anything else asked of you) and also you need to inform law enforcement of your decision to buy properties. In short, you will likely only be able to buy certain BD properties if you can prove you are legitimate and have the funds available.
Are you a foreign national looking for a flat for sale in Dhaka? Then let BestBari assist you today. We are a proven real estate company in Bangladesh that can ensure foreign buyers can invest in property without any concerns. For help and advice on making the right investment, reach out to us today.