Sale of Immovable Property in Pakistan under FBR, the tax rate has been enhanced on property transaction through Finance Act, 2022. The FBR said the rate of advance tax on sale or transfer and on purchase or transfer of immovable property has been enhanced from 1% to 2%.

The capital gain arising on the disposal of immovable properties is taxable to extent of 100%, 75%, 50% and 25%, if property is sold within 1, 2, 3 and 4 years respectively. The gain so calculated on the basis of holding period was taxable at the rates ranging from 2.5% to 10%.

Who is Exempt From Property Tax in Pakistan as Per Law

If the rent from a property is donated to a religious or charity organization, it is tax-free. The exempted property includes buildings and dwellings held by widows, orphans, or disabled persons with an annual income of up to PKR 12,150. Mosques and religious sites are exempt from the levy.