Property Registration Fees in Bangladesh
The recent lowering of Property registration fees in Bangladesh has provided a measure of relief to the country’s real estate market, a move that industry participants say will provide buyers with a substantial benefit.
Currently, the registration charge is 1 percent of the entire price of land or apartment, bringing the effective registration cost down to 10 percent from 14 percent prior to December of last year.
A purchaser of land or an apartment for Tk1 crore will now be required to pay Tk10 lakh in registration fees, which comprises stamp duty, registration fee, VAT (value-added tax), and local government tax. This is a decrease from the previous year’s registration charge of Tk14 lakh.
In terms of Property registration fees in Bangladesh, The buyer will pay 1% of the purchase price in registration fees, 1.5% in stamp duty, 3% in sales tax, and 2% in local government taxes.
Previously, the registration fee comprised 14 percent of the overall cost; it is now 10 percent. This is a tremendous opportunity for plot and apartment owners, and the change will certainly have a good effect on the housing market.
In December 2020, the Internal Resources Division (IRD) and National Board of Revenue (NBR) decreased the stamp duty rate from 3 percent to 1.5 percent. At the same time, a request to half the NBR registration fee was sent to the Ministry of Law.
In 2018, the government established a committee comprised of the NBR, Ministry of Public Works, Federation of Bangladesh Chambers of Commerce & Industry, and REHAB members to handle various housing sector challenges, including the decrease of flat or plot registration fees.
The Property Registration Fees in Bangladesh, Searches and Copies of Property in Bangladesh in 2023
Section 78 of the Registration Act states:
(a) the registration cost for registering a contract for the sale of real property shall be:
(i) five hundred taka if the property is valued at less than five million BDT;
(ii) one thousand taka where the valuation of the property is between five and fifty million taka; and
(iii) two thousand taka if the property is valued at more than fifty lakh taka;
(b) registration fee payable for registration of a declaration of heba of any immovable property under the Muslim Personal Law (Shariat) shall be one hundred taka regardless of the property’s value if such heba is made between spouses, parents and children, grand parents and grand children, full brothers, full sisters, and full brothers and full sisters;
In terms of Property registration fees in Bangladesh, registration fee payable for registration of a declaration of gift of any immovable property made under the Hindu, Christian, and Buddhist Personal Law, if such gift is permitted by their Personal Law, shall be one hundred taka regardless of the property’s value, provided such gift is made between spouses, parents and children, grand parents and grand children, full brothers, full sisters, and full brothers and full sisters;]
(c) the registration fee for a mortgage instrument referred to in section 59 of the Transfer of Property Act of 1882 shall be as follows:
(i) where the amount of money to be secured does not exceed five lakh taka- 1% (one per centum) of the amount of money to be secured, but not less than two hundred taka and not more than five hundred taka;
(ii) where the amount of money to be secured is above five lakh taka but does not exceed twenty lakh taka- 0.25% (zero point two five per centum) of the amount of money to be secured, but not less than fifteen hundred taka and not more than two thousand taka; and
(iii) where the amount of money to be secured is above twenty lakh taka- 0.10% (zero point one zero per centum) of the amount of money to be secured, but not less than three thousand taka and not more than five thousand taka.] Property Registration Fee in Bangladesh
Investing in real estate is, to say the least, a difficult endeavor. In addition to the apparent difficulties involved in acquiring the requisite finances to purchase one, there are so many formalities and legal obstacles to overcome that the prospect is frightening. If, however, one is able to make it through, it will be owing to diligent budgeting. As a first-time buyer, the Tahmidur Rahman Remura TLS law office has compiled a simple checklist for you to follow in order to avoid financial complications and prepare you for all types of costs in Bangladesh real estate. Believe us when we tell you’ll need this while purchasing an apartment.
Property registration fees in Bangladesh, the down payment is a proportion (ranging from 10% to 30%) of the apartment’s total price that you must pay in order to acquire ownership of the property. This means that you must pay the deposit only if you are completely confident about purchasing the unit. The down payment is the sum required to formalize a deed with the seller.
According to the sales deed, the person who paid the down payment becomes the buyer at this moment. However, possession of the deed alone is insufficient. A transfer of ownership is necessary so that the buyer is legally recognized as the land’s new owner.
Sale Permission Fees in Bangladesh
Obtaining selling permission costs is the first stage of transferring ownership. When a property is to be sold, the seller must obtain approval from the appropriate authorities. In Dhaka, only leasehold properties administered by RAJUK, the National Housing Authority (NHA), or the Ministry of Housing and Public Works are eligible for sales approval. Permission must be obtained from Chattogram Development Authority in Chattogram (CDA).
Since obtaining selling approval is a lengthy and arduous process, sellers can surely seek assistance from Tahmidur Rahman Remura law firm in Bangladesh. We create the application along with the seller-supplied documentation and submit the required fees to the relevant authorities on your behalf.
Only after receiving the final letter of permission can the registration process begin. For freehold properties, no selling authorization is necessary. Freehold properties include land in private residential neighborhoods, such as Aftabnagar, as well as plots controlled by real estate firms.
Registration of Property in Bangladesh
The fee for registration is paid when a deed of sale or transfer is executed. The registration procedure requires both the buyer and seller to be present. It is essential that they thoroughly review the sales transaction and verify that all information is accurate. There are a variety of rates, but typically it is between 12 and 14% of the purchase price of the property, inclusive of fees and taxes.
Duty On Stamps And Taxes
All documentation pertaining to real estate must be validated. The stamp tax serves this purpose. Simply pay tax on the whole price of the flat you are purchasing. This will formalize the transfer deed. The buyer must pay a local government tax in addition to the value-added tax on the total price of the land. Before acquiring a house, you should be prepared for this sum. Consult the professionals at Tahmidur Rahman Remura TLS to learn more about paying your taxes!
Mutation of Property in Bangladesh
The mutation will be one of the most crucial procedures in acquiring property through a legal process. By modifying the Khatiyan document, this is the legal procedure by which the previous owner’s name is replaced with the new owner’s.
This is a crucial step that should be considered once the court and stamp fees have been paid, as these documents will be required for the mutation application. You cannot pay land development tax or register the property in your name without completing this procedure. The purchaser is responsible for paying the applicable fees to any of the following authorities: RAJUK, CDA, NHA, or AC Land Office.
With our professional services, you can quickly navigate this procedure without having to visit multiple offices. Without mutation, a buyer cannot be listed as the property’s new owner, and consequently, the property cannot be sold in the future.
Instalment Payment In Home Loans
There are numerous home loan programs available from banks and commercial institutions to assist with the down payment. They provide a plan in which you pay monthly installments over a specified number of years to cover the cost of the flat. It is contingent upon your credit score and financial solvency, therefore you must verify these factors beforehand.
You may ask the financial specialists at Tahmidur Rahman Remura law firm for assistance. Banks and other financial organizations charge a minor processing fee for loan applications. Utilize our home loan calculator to gain a better understanding.
All of the above costs are applicable to the purchase of any flat in Bangladesh, whether it was created by a person or a real estate business. Obviously, there are additional costs associated with the acquisition of a house, such as insurance and interest on bank loans, if you have chosen to take out a loan to finance the purchase. It is impossible to provide a precise figure for these costs, as they vary entirely on the insurance company/bank/financial institution chosen.
The closing process is not simple. It necessitates comprehensive evaluation and inspection of the property, which we also perform. When dealing with primary or secondary property in Bangladesh real estate, there are agent fees, which are a proportion of the selling price. Our professionals at Tahmidur Rahman Remura law firm can provide further information regarding additional costs and optional fees, and you can purchase your dream home immediately.
Here is a table of the necessary documents for property registration in Bangladesh:
|Type of Property||Necessary Documents|
|Residential land||Sale deed, tax payment receipt, map of the property, national identity card or passport of the owner|
|Commercial land||Sale deed, tax payment receipt, map of the property, national identity card or passport of the owner, trade license|
|Agricultural land||Sale deed, tax payment receipt, map of the property, national identity card or passport of the owner|
|House||Sale deed, tax payment receipt, map of the property, national identity card or passport of the owner|
|Flat||Sale deed, tax payment receipt, map of the property, occupation certificate, national identity card or passport of the owner|
|Shop||Sale deed, tax payment receipt, map of the property, trade license, national identity card or passport of the owner|
|Office||Sale deed, tax payment receipt, map of the property, occupation certificate, national identity card or passport of the owner|
|Factory||Sale deed, tax payment receipt, map of the property, occupation certificate, factory license, national identity card or passport of the owner|
|Warehouse||Sale deed, tax payment receipt, map of the property, occupation certificate, national identity card or passport of the owner|
|Godown||Sale deed, tax payment receipt, map of the property, occupation certificate, national identity card or passport of the owner|
|Workshop||Sale deed, tax payment receipt, map of the property, occupation certificate, workshop license, national identity card or passport of the owner|
Note: The above list is a general guide and the actual documents required for property registration may vary depending on the specific circumstances of the case. It is advisable to consult with a legal professional to ensure that all necessary documents are obtained and submitted.
Are you planning to buy any property or do any property registration in Bangladesh?
Tahmidur Rahman Remura TLS is a full-service law firm that has been dealing with Property registration fees or land related problems on a regular basis since its inception through its qualified and experienced lawyers.
If you require any assistance or consultation, please visit our office or contact us at +8801779127165 or +8801847220062 (WhatsApp) or by email- [email protected]
E-mail: [email protected]
Phone: +8801847220062 or +8801779127165
Address: House 410, Road 29, Mohakhali DOHS, Dhaka 1206