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 Fees in Registration, Searches and Copies of Property in Bangladesh in 2023
Section 78 of the Registration Act states:
(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.