Buying property in Pakistan in 2025 requires a clear understanding of all taxes and transfer charges. These property taxes are applied by:

• Federal Government (FBR)
• Provincial Governments (Punjab, Sindh, KP, Balochistan)
• Development Authorities (LDA, CDA, RDA, MDA)

Many buyers are confused due to multiple tax categories and changing FBR valuations each year.
This extended guide explains every tax in simple language, with updated 2025 rates, examples, and tips to reduce your cost.

📌 Understanding Property Taxes in Pakistan

When you buy or sell a property in 2025, you may need to pay multiple taxes depending on:

• Whether you are a filer or non-filer
• Whether you are the buyer or seller
• The location (Punjab, Sindh, KP, Islamabad)
• The type of property (plot, house, apartment, commercial)
• The size/value of the property
• Whether the property is constructed or unconstructed
• Whether it is a first-time transfer or a resale

Each category has its own tax rules, which are explained below.

📘 1. Withholding Tax (WHT) — Paid by Both Buyer & Seller

Withholding Tax is one of the most important taxes applied at the time of property transfer. It is collected by FBR through the registrar.

Buyer WHT Rates (2025)

• Filer: 2% of FBR value
• Non-Filer: 7% of FBR value

Seller WHT Rates (2025)

• Filer: 3%
• Non-Filer: 10%

🔥 Important: WHT is calculated on FBR valuation, not the market price.

✔ Example of WHT in 2025

Suppose you are buying a plot in Lahore with:

• Market price: Rs. 15 million
• FBR value: Rs. 8 million

You will pay WHT based on 8 million, not 15 million.

Buyer (Filer) WHT

2% of 8,000,000 = Rs. 160,000

Buyer (Non-filer) WHT

7% of 8,000,000 = Rs. 560,000

📙 2. Capital Gains Tax (CGT) — Paid by Seller Only

CGT is applied when a seller sells property before completing the holding period.

CGT Rates in 2025

• Sold within 1 year → 15%
• Sold within 1–2 years → 10%
• Sold within 2–3 years → 5%
• Sold after 3 years → Exempt (0%)

✔ Holding period for apartments

For high-rise apartments the holding period may be up to 5 years for exemption.

✔ CGT Example

You bought a plot for Rs. 5 million and sold it for Rs. 7 million after 1 year.

Profit = Rs. 2 million
CGT = 15% of 2,000,000 = Rs. 300,000

📗 3. Stamp Duty — Provincial Tax

Stamp duty is paid when you register a property with the provincial government.

Stamp Duty Rate (2025)

• Punjab: 3% of DC value
• Sindh: 3%
• KP: 3%
• Balochistan: 3%

Note: Calculated on DC valuation, not market value.

✔ Stamp Duty Example

DC value = Rs. 6 million
Stamp duty = 3%
03% × 6,000,000 = Rs. 180,000

📕 4. Capital Value Tax (CVT)

CVT is paid during transfer of immovable property.

CVT Rates (2025)

• Punjab: 2%
• Sindh: 3%
• Islamabad: 2%
• KP: 2%

✔ CVT Example

DC value = Rs. 6 million
CVT (Punjab) = 2%
= Rs. 120,000

📒 5. Property Registration Fee

This is charged by the provincial registrar office at the time of transfer deed.

Rate

1% of DC value

✔ Registration Fee Example

DC value = Rs. 6 million
Fee = 1% = Rs. 60,000

📔 6. Advance Tax Under Section 236K (Buyers Pay This)

This tax is collected by FBR from buyers before property transfer.

Rates for 2025

• Filer: 3%
• Non-filer: 10%

This is separate from WHT.

✔ Example

DC value = Rs. 6 million
Buyer is filer
236K = 3% = Rs. 180,000

🧮 Total Taxes for a Buyer in 2025 (Filer vs Non-Filer)

Let’s calculate total buyer taxes on a property with DC Value = Rs. 6,000,000 (6 million).

👉 If the Buyer is a Filer

• Stamp Duty = 3% = 180,000
• CVT = 2% = 120,000
• Registration Fee = 1% = 60,000
• WHT = 2% of FBR value
• 236K Advance Tax = 3% = 180,000

⭐ Total Buyer Taxes ≈ 9–11%

👉 If the Buyer is a Non-Filer

• Stamp Duty = 3%
• CVT = 2%
• Registration Fee = 1%
• WHT = 7%
• 236K Advance Tax = 10%

⭐ Total Buyer Taxes ≈ 18–22%

🏙️ Property Taxes in Major Cities (2025)

Different cities follow different DC rates and transfer procedures.

🏙️ Lahore Property Taxes (2025)

• LDA updated DC valuations in 2025
• Stamp duty = 3%
• CVT = 2%
• Registration fee = 1%
• Both FBR and DC values apply

More details: https://lda.gop.pk

🏢 Islamabad Property Taxes (2025)

• CDA regulates land and construction
• CVT = 2%
• Stamp Duty = 3%
• Registration Fee = 1%
• High FBR valuation tables

CDA portal: https://www.cda.gov.pk

🌆 Karachi Property Taxes (2025)

• Stamp duty = 3%
• CVT = 3% (Sindh highest in Pakistan)
• Registration fee = 1%

🛕 Multan, Faisalabad, Rawalpindi

These follow their provincial DC and CVT structures.

📘 Hidden or Less-Known Property Taxes

✔ Mutation (Intiqal) Fee

Small administrative fee for updating land ownership.

✔ TMA Taxes (for non-LDA areas)

Small charges for map approvals and certification.

✔ Documentation & Lawyer Fees

Not fixed — varies based on location.

✔ Housing Society Transfer Fees

Societies like DHA and Bahria Town charge their own transfer fees.

📋 Checklist Before Buying Property in 2025

✔ Check whether you are a filer
✔ Ask for FBR value, DC value, and market price
✔ Confirm NOC and ownership papers
✔ Verify tax challans from FBR and provincial office
✔ Compare society transfer fees
✔ Use legal help for high-value properties

Need assistance?
👉 https://propertyvisors.com/contact

⭐ Conclusion

Property taxes in Pakistan in 2025 are higher for non-filers and moderate for filers. Before buying any property, calculate:

• Stamp Duty
• CVT
• WHT
• Registration fee
• Advance tax 236K

Understanding these taxes helps you plan your total budget correctly.

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