Can Foreigners Buy Property in Bangladesh?
Buying property in Bangladesh may have been on your radar for quite some time. Bangladesh’s economic potential is growing as the country joins the ranks of the world’s fastest-developing economies. So, it can be quite a lucrative place for investment. However, there are a few things to keep in mind if you’re a foreigner looking to buy property in another country. There can be a plethora of pitfalls and loopholes to be aware of as a foreigner. Thorough homework is necessary before starting your new endeavor to eliminate the risk of losing your entire capital. The first is to make sure that you’re familiar with the Bangladeshi laws and regulations regarding property ownership. For instance, in some countries, foreigners are not allowed to own properties outright. Instead, they may have to lease the property from the government or form a partnership with a local citizen. The main concern here is to research the rules and restrictions before you make any purchase. Finally, don’t forget to factor in the costs of ownership, including property taxes and maintenance. These costs usually vary widely from country to country, so it’s important to get a realistic estimate before you make any decisions. For your convenience, this article will guide you through the maze of procedures involved in buying a property in Bangladesh as a foreigner.
Should Foreigners Buy Property in Bangladesh?
Bangladesh is a rapidly developing country with a growing economy and population. Located on the coast of the Bay of Bengal in the geographic center of South Asia, it has a key strategic position. Serving as a major crossroad for commerce between South Asia and Southeast Asia, it has a considerable impact on the economies of both regions. As a result, it is becoming an increasingly popular destination for property investors. Bangladeshi property prices are still relatively low, and there is a wide range of options available, from apartments to villas, to farms and land. Construction costs are also quite cheap here compared to other developed countries. In addition, the country offers a number of tax incentives for property buyers, making it an attractive investment destination. Bangladesh also has a number of key infrastructure projects underway, which are likely to further boost the property market in the coming years. More importantly, urbanization in Bangladesh has constantly been moving upward. The rising population in the country’s metropolis has certainly fueled the housing demand. Therefore, investing in Bangladeshi real estate companies will not only provide a steady stream of income (if you decide to rent it out), but may also prove to be a wise financial decision due to the potential appreciation in value. In addition, purchasing property in rural Bangladesh and constructing a home there can be a sustainable and unique choice for those looking to retire abroad or for a holiday home overseas. Initially, you should find out and settle on the property’s primary purpose before committing yourself to buy the property. But whatever your motivation is, you should treat this investment the same way you would any other.
Buying Property in Bangladesh as a Foreigner
Can a non-Bangladeshi purchase a property here at all? A few know the answer. No one, not even the most veteran attorneys or relevant individuals, can agree on what the rule actually is. The answer to this question is not as simple as it seems. It’s more complicated than just a yes or no.
As a matter of fact, there is no clear provision in Bangladeshi law regarding the acquisition of property by non-citizens till now. Because of this, the issue at hand is open to interpretation. In Bangladesh, all the legislations pertaining to property ownership are combined and organized in the ‘Transfer of Property Act’ or the ‘Registration Act’. Property ownership by non-citizens or foreign nationals is not addressed in any of these acts. However, as there is no particular limitation under any legislation either prohibiting the selling or registering any property in possession of a foreign national, it is reasonable to think that foreigners can acquire property in Bangladesh. Besides, there are a wide variety of lands and property types around the country, each with its own unique laws that govern who can possess it and who can transfer it to whom. Therefore, unless there is a restriction on the type of property being sold, a foreigner can legally purchase real estate in Bangladesh.
There are a few restrictions in place, but overall the process is relatively straightforward. In general, foreigners are only allowed to purchase flats in Dhaka for residential purposes, and they must obtain approval from the Bangladesh Board of Investment. In addition, the property must be located in an approved area, and the purchase price must be paid in full in foreign currency. However, these requirements are not overly complicated, and as long as you meet them, you should be able to purchase property in Bangladesh without any major problems.
Factors to Consider Before Buying Property in Bangladesh
Purchasing a home in a foreign country may be a very exciting venture, but it is crucial to do your research first. Those looking to buy a house in Bangladesh would be well to familiarize themselves with the Bangladeshi legal system first. Moreover, it is extremely important to have a financial manager, a real estate attorney, and a real estate agent all hailing from Bangladesh on hand when buying a property or piece of land in the country. These professionals understand the Bangladeshi real estate industry thoroughly and can offer valuable insights into selecting the right property. As you enter a new place and culture, this degree of understanding will be crucial. If you give careful thought to these issues, purchasing property in Bangladesh can be financially rewarding. However, there are still some questions that need further clarification.
What type of property can a foreigner buy in Bangladesh?
In general, foreigners are only allowed to purchase property for residential purposes. Expats have a plethora of options for purchasing apartments or flats in Dhaka’s finest neighborhoods. Unfortunately, it’s possible that a person who wants to acquire land, in particular, will run into certain difficulties. He may, however, get a business license, set up a company, and then buy the land under the company’s name, thus bypassing the aforementioned regulations. It’s also probable that he’ll encounter obstacles trying to acquire land in a RAJUK-owned area, as that organization has banned the sale of its land to foreign citizens.
The legal requirements for foreigners to buy properties in Bangladesh
Legally, foreign citizens may need to arrange paperwork and approvals from many authorities in order to acquire and register property in Bangladesh, despite the fact that Bangladeshi law makes no reference to or prohibits such activity. It goes without saying that they’ll need some form of official identity (passport, tax identification number, etc.) to back up their property acquisition in Bangladesh. In order to proceed, they will require approval from the Bangladesh Board of Investment. They will need to turn in their paperwork at the police station so that authorities there are aware of the arrangement and can act appropriately in the case of an emergency. They need to prove they can afford it by presenting documentation of their income.
How to finance your property in Bangladesh as a foreigner?
As a foreigner looking to purchase property in Bangladesh, there are a few options available to you in terms of financing. One option is to arrange for a loan from a local bank. However, you will likely need to provide collateral, such as another property or a large sum of cash, in order to secure the loan. Another option is to work with a private lender. Private lenders typically charge higher interest rates than banks, but they may be more willing to work with foreigners. Finally, you could also finance the purchase with your own savings. If you are able to do so, this is often the best option, as it will give you full ownership of the property, and you will not have to worry about making monthly loan payments.
Taxes and fees for buying property in Bangladesh as a foreigner
Due to the lack of any regulations targeting foreign buyers of the property market in Bangladesh, non-citizens are not subjected to any separate tax schemes than those applied to native citizens. Therefore, much like Bangladeshi nationals, non-citizens will be required to pay 10% of the total cost of the property to the government in order to register their property. Taxes on rental income will amount to 30% of whatever money they make from renting out their home.
The steps to purchasing a property in Bangladesh
Remember that the steps involved in buying a property abroad may differ significantly from those you’re familiar with at home.
- Start looking for the desired property in Bangladesh, either on your own or with the help of a real estate agent.
- Seek pre-approval for a loan from a local bank if you need one.
- Apply for approval from the Bangladesh Board of Investments.
- Hire a real estate agent.
- Have you found any property of your choice? Talk to your real estate agent about putting in an offer. Discuss the price and any other details of the sale.
- Your agent will do all of the required verifications, investigations, and paperwork for the acquisition on your behalf.
- Confirm your loan or other sources of money.
- Pay the down payment and sign the agreement.
- Get the deed notarized, and then get it recorded at the land registry office.
- Send the remaining amount of the original cost and pay any applicable taxes and fees.
- Your new Bangladeshi property is ready now and waiting for you to take possession of it!
Bangladesh has made steady strides toward easing a variety of investment hurdles, particularly those related to providing consistently sufficient electricity and a solid infrastructure for foreign investments. Property investors now have more reasons to consider Bangladesh as a viable choice, thanks to the ongoing efforts to strengthen the country’s economic environment. However, there are several legal loopholes to watch out for if you are seriously considering buying a property in Bangladesh. By keeping in mind, the things mentioned in this article, you can make the process of buying property as a foreigner a lot easier and less stressful.
What are the prospects for investment in Bangladesh?
Ans: Bangladesh is poised to receive increased investment in the coming years as a result of its huge, youthful, and hardworking workforce, strategic position, and thriving private sector.
What are the mistakes one should avoid while buying a property in Dhaka?
Ans: Follow this detailed guide to avoid making some of the most common mistakes people make when buying property in Dhaka.
Is it too expensive to acquire a property in Bangladesh?
Ans: No. Bangladesh is a great place to invest in real estate since prices are lower than in other developed nations.
How risky is it for a foreigner to visit Bangladesh?
For those wondering, the annual number of insurgencies in Bangladesh is quite low, making it a relatively secure country for tourists.
How to find a good real estate agent in Bangladesh?
Ans: Finding a good real estate agent can be quite challenging. Read this article to get advice on how to find a good real estate agent in Bangladesh.