Bangladesh (BD)

Bangladesh is a densely populated delta nation in South Asia, bordered by India and Myanmar, with the Bay of Bengal to the south.

Capital: Dhaka

Region: Asia

Language: Bengali

Currency: BDT (৳)

Cost of living: Very affordable (index 15)

Emergency: 999

Buying Property in Bangladesh

The full buying process, transaction costs, mortgage, and legal requirements.

Direct property ownership by foreign nationals in Bangladesh is heavily restricted. The Transfer of Property Act 1882 and Registration Act 1908 govern conveyancing, while the Foreign Private Investment (Promotion and Protection) Act 1980 provides the core framework for foreign capital in real estate. Foreign individuals may own up to 49% of a residential apartment in their personal name with government authorisation — a protracted process with no guaranteed outcome. The most reliable route for foreign investors is to incorporate a company registered with the Registrar of Joint Stock Companies and Firms (RJSC), through which commercial and residential property can be acquired with prior BIDA approval. Dual nationals (Bangladeshi-origin persons holding foreign citizenship) have broader rights and are the primary foreign buyers. The homeownership rate in Bangladesh is approximately 60% nationally but under 30% in Dhaka due to high prices and rapid urbanisation. Most foreign expats rent.

Rent vs. Buy

Renting is the default and most practical option for foreign expats. Dhaka's Gulshan, Banani, Baridhara, and Dhanmondi neighbourhoods offer an active English-speaking rental market with serviced apartments and gated housing. Rental yields for prime Dhaka apartments are 4–7% gross. Property values in Dhaka have appreciated 8–12% per year in recent years, but the restricted resale market for foreign-owned property and the difficulty repatriating sale proceeds make speculative purchase risky. Long-term diaspora investors and dual nationals are the primary buyers in the higher-end new-build apartment market. Chittagong (Chattogram), Sylhet, and Cox's Bazar are secondary markets of interest to diaspora buyers.

Buying Process — Step by Step

Assess eligibility and choose the correct legal structure

1–2 weeks

Determine whether you qualify as a dual national (Bangladeshi origin), a foreign individual (49% cap, government approval required), or a foreign company (via RJSC incorporation with BIDA approval). Engage a local lawyer specialising in property and foreign investment law. The company route via RJSC is the most reliable for full ownership. Dual nationals with valid passports can proceed more directly.

Register a company with RJSC (if using company route)

4–8 weeks

File for name clearance on the RJSC portal (roc.gov.bd), prepare Memorandum and Articles of Association, remit paid-up capital to a Bangladeshi bank and obtain an Encashment Certificate, then submit incorporation documents. RJSC issues a digital Certificate of Incorporation. The company must then obtain a Trade License from the local municipality and a Tax Identification Number (TIN) from the NBR. The entire process takes 20–30 working days.

Obtain BIDA approval (foreign investor route)

4–8 weeks

Foreign investors purchasing property outside Economic Zones must register with the Bangladesh Investment Development Authority (BIDA) via the One Stop Service portal (bidaquickserv.org). BIDA approval is mandatory for foreign investment in real estate. Also notify the local police station (security clearance is part of the process).

Identify property and conduct title due diligence

3–6 weeks

Engage a licensed lawyer to search the Sub-Registry Office records and the online land record portal (land.gov.bd / dlrs.gov.bd). Verify: chain of ownership from the original record (Khatian/CS, SA, RS), absence of government acquisition, clear mutation (Namjari) records, and no outstanding mortgage or litigation. For apartments, verify the developer's RAJUK approval, building plan sanction, and land lease/ownership. Structural inspection by an engineer is strongly recommended.

Negotiate and sign a sale agreement (Bainanama)

1–2 weeks

A notarised sale agreement (Bainanama) sets out the price, payment schedule, and conditions. An advance/earnest money of 10–25% is typically paid at this stage. Ensure the agreement is notarised before a First Class Magistrate or Notary Public.

Execute the registered sale deed at the Sub-Registry Office

1–3 days

The final sale deed (Dastavej) must be executed in person (or via registered power of attorney) before the Sub-Registrar. The deed must be on non-judicial stamp paper of the correct denomination. Both parties must present National ID / passport, photographs, and witnesses. The Sub-Registrar registers the deed in the official register. Registration must occur within the district where the property is located.

Pay stamp duty, registration fee, VAT, and AIT

1–2 days (payments concurrent with registration)

Stamp duty: approximately 3% of deed value (varies; ~1.5% for Dhaka apartments). Registration fee: approximately 1–1.5% of deed value. VAT: 2% for apartments under 1,600 sq ft; 4.5% for larger units (paid to the National Board of Revenue — nbr.gov.bd). Advance Income Tax (AIT/53FF): varies by property location and type. Total government costs typically range 6–10% of deed value.

Mutation (Namjari) and post-registration steps

4–8 weeks

After registration, apply for mutation of the property records at the relevant Union Parishad or municipality to reflect the new owner's name in the Khatian (land record). This is required for future resale and tax purposes. Obtain updated Khatian document from the Land Survey Office. For foreign buyers, maintain bank records of inward remittances to enable future repatriation of sale proceeds.

Transaction Costs

Cost Item	Amount	Notes
Stamp duty	~3% of deed value (1.5% for Dhaka apartments)	Rate varies by property type and location. Paid on non-judicial stamp paper or at the Sub-Registry Office.
Registration fee	~1–1.5% of deed value	Paid at the Sub-Registry Office at the time of deed registration.
VAT on apartment purchase	2% (under 1,600 sq ft) / 4.5% (over 1,600 sq ft)	Payable to NBR. Applies to apartment purchases from developers; not applicable to direct land transfers.
Advance Income Tax (AIT / Section 53FF)	Varies by location and property type	Collected at source during registration; deductible against final income tax liability. Consult a tax adviser for current rates.
Gain tax on resale (capital gains)	Taxed as ordinary income (0–25%)	Profit from property sale is taxable as capital gain or income. Rates depend on holding period and taxpayer status.
Legal fees	BDT 50,000–500,000	Varies with property value and complexity. RJSC incorporation adds BDT 20,000–80,000.
Real estate agent / broker commission	1–3% (negotiable)	Usually 1–2% for apartments from developers; up to 3% for secondary market transactions.
RJSC company incorporation (if applicable)	BDT 20,000–80,000	Government fees plus professional costs. Required for the company-route foreign purchase.
Estimated total buyer transaction costs	6–12% of purchase price	Includes stamp duty, registration, VAT, AIT, and professional fees. Foreign buyers using the company route face additional RJSC and BIDA costs.

The Notary — Mandatory for All Purchases

Bangladesh uses a common-law registration system inherited from British India. There is no civil-law notary in the continental European sense. The Sub-Registrar (Sub-Registry Office under the Inspector General of Registration) is the statutory officer who registers deeds. A licensed advocate (lawyer) drafts the deed and verifies documents. Notarised powers of attorney are executed before a First Class Magistrate or Notary Public and, if executed abroad, must be authenticated by the Bangladeshi High Commission or Embassy in that country.

Mortgage

Foreign nationals generally cannot obtain mortgage financing from Bangladeshi commercial banks for personal property purchases. Bangladeshi banks lend primarily to residents and citizens with documented local income. Home loan interest rates in Bangladesh range from approximately 7–12% per annum as of 2026, with variable rates common. Dual nationals with Bangladeshi-origin status and local income may qualify for home loans from private and state-owned banks. Standard Chartered Bangladesh, SBI Bangladesh, and major domestic banks offer home loan products.

Typical Deposit Required

20–30% for resident borrowers. Foreign investors using the company route must typically self-fund or arrange financing offshore, as collateral acceptance and AML documentation requirements are stringent for non-resident entities.

For Foreign Buyers

Foreign nationals are generally excluded from Bangladeshi bank mortgage products. Dual nationals may access home loans if they have a Bangladeshi NID and local income. The BIDA One Stop Service can sometimes facilitate introductions to domestic banks for approved foreign investors. Most foreign buyers fund purchases through inward remittance from abroad — retain Encashment Certificates from the bank, as these are required for proof of legal funds and future repatriation.

Recommended Lenders & Brokers

Standard Chartered Bangladesh (sc.com/bd) — Home loan, mortgage productsState Bank of India Bangladesh (bd.statebank) — Mortgage loanRupali Bank (rupalibank.com.bd) — General House Building LoanBRAC Bank (bracbank.com) — Home loanDutch-Bangla Bank (dutchbanglabank.com) — Housing financeOne Bank (onebank.com.bd) — OBPLC Home Loan

Land Registry

Land registration is administered by the Inspector General of Registration under the Ministry of Land (minland.gov.bd). Each district has Sub-Registry Offices where deeds are registered. The Department of Land Records and Survey (dlrs.gov.bd) maintains Khatian (land records). The online land portal land.gov.bd provides access to digital records in many districts. Mutation (Namjari) of records is handled by Union Parishads and local Land Offices. Title search should be conducted both at the Sub-Registry Office (deed records) and the Land Office (Khatian records) — these systems are separate. Search cost: BDT 200–2,000 per search depending on the district.

Taxes

Stamp duty: ~3% of deed value (lower for Dhaka apartments). Registration fee: ~1–1.5%. VAT: 2–4.5% on new apartments. Advance Income Tax (AIT/53FF): rate varies by location. Annual property/holding tax: levied by City Corporations and Pourashavas (municipalities) based on annual rental value, typically 7–15% of assessed annual value. Capital gains on property sale: taxed as ordinary income under the Income Tax Ordinance 1984 (as amended) — 0–25% depending on taxpayer status and holding period. Foreign companies must also consider corporate income tax (27.5%) on net gains. NBR (nbr.gov.bd) publishes current rates.

New Build vs. Existing Property

New-build apartments from REHAB (Real Estate and Housing Association of Bangladesh) member developers offer clearer legal documentation and RAJUK-approved building plans, making them preferable for foreign and diaspora buyers. Off-plan purchases carry developer risk — verify the developer's RJSC registration, RAJUK approval, and land lease. Existing properties (secondary market) require more thorough title searches through both the Sub-Registry and Land Office records. Always verify mutation records are current before completing any purchase.

Selling Property

Foreign-owned property (company route) may be sold subject to BIDA approval for the transaction. Capital gains are taxable as income. Foreign companies may repatriate sale proceeds through the banking system after settling all tax liabilities and obtaining a Tax Clearance Certificate from NBR. Repatriation requires presenting the original inward remittance records (Encashment Certificates). Bangladesh Bank (central bank) governs the repatriation process under the Foreign Exchange Regulation Act 1947.

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