The cost of buying property in Pakistan: taxes & fees
Buying property in Pakistan involves various one-off costs in addition to the purchase price. It's essential to be aware of these expenses to make informed financial decisions.
This guide will provide an overview of the typical purchasing costs, recurring ownership expenses, and insights into mortgage options for non-residents.
One-off Purchase Costs
When purchasing property in Pakistan, you should budget for several one-off costs. Common expenses include transfer tax, notary and registration fees, and legal or conveyancing fees.
The transfer tax is typically a percentage of the property price, and notary/registration fees can vary by location.
- Transfer tax: generally around 2% to 5%
- Notary and registration fees: can range from 1% to 3%
- Legal fees: generally between 1% to 2% of the property value
Estimated Total Purchase Costs
Including transfer tax, notary fees, and legal fees, you should typically budget around 5% to 10% of the property's purchase price for total one-off costs.
For example, if you buy a property valued at PKR 10 million, total additional costs might range from PKR 500,000 to PKR 1 million.
Recurring Ownership Costs
After purchase, you will encounter recurring costs associated with property ownership. These include annual property tax, utilities, insurance, and community or condo fees where applicable.
Annual property tax usually varies by province and can be a small percentage of the property's assessed value.
- Property tax: approximately 0.5% to 1% of assessed property value
- Utilities: electricity, water, gas (varies widely based on usage)
- Home insurance: generally 0.1% to 0.5% of home value annually
Worked Example
Assuming a property purchase price of PKR 10 million, your one-off costs might look like this:
- Transfer Tax (3%): PKR 300,000
- Notary/Registration (2%): PKR 200,000
- Legal Fees (1%): PKR 100,000
In total, this adds up to approximately PKR 600,000 in one-off costs.
Mortgages for Non-residents
Obtaining a mortgage in Pakistan can be challenging for non-residents, as local banks often require a larger deposit and charge higher interest rates. It's advisable to consult with a local financial advisor to understand your options.
Factors such as your residency status and the property type can influence mortgage availability.
Frequently asked questions
What is the typical property transfer tax in Pakistan?
The property transfer tax usually ranges from 2% to 5% of the property's purchase price.
Can I get a mortgage as a non-resident?
Yes, but it might be more difficult. Local banks often require larger deposits and higher interest rates.
What are the main recurring costs after buying a property?
Recurring costs include annual property tax, community or condo fees, utilities, and insurance.
How much should I budget for total purchase costs?
Typically, you should budget around 5% to 10% of the purchase price for total one-off costs.
Are legal fees included in the one-off costs?
Yes, legal fees usually account for 1% to 2% of the property's purchase price and should be included in your budget.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed September 2026.