Land and Flat Registration Cost 2024: Everything You Need to Know

Lands and flats offer rental income and increase in appreciation with time. Even though they’re stable and reliable investments – there are some registration and maintenance costs you need to know.

So, what’s the land and flat registration cost 2024? The land registration costs in Bangladesh have been reduced in some cases. You can now register land at a lower cost in four categories of areas. The tax rate has been reduced from 8% to 6%, and the amount has changed from Tk 80,000 to Tk 50,000. 

Find out more about the changes in tax rates for land registration in Dhaka, Gazipur, Narayanganj, and Chittagong!

Changes in the Land and Flat Registration Cost 2024

In October 2023, the tax rates were determined based on mouza. So, the lands located in the Dhaka, Chittagong, Gazipur, and Narayanganj City Corporation areas and outside of them were divided into five categories, from ক to ঙ.

In 2024, there will be a reduction in registration fees and local government tax in specific mouzas. Besides, the gain tax calculation method now incorporates mouza-based rates.

The four categories of areas where the tax rate has been reduced are as follows:

The three categories of areas where the tax per Katha has been reduced are as follows:

Everything You Need to Know About Land and Flat Registration in 2024

Purchasing a property in Bangladesh is a big step, but dealing with fees and taxes can be confusing. This guide will help you understand everything you need about the financial side of owning property in Bangladesh in 2024!

Here’s a list of the costs associated with registering a land or flat in Bangladesh in 2024 –

The Initial Costs: Securing Your Investment

• Down Payment (20-25% of property value)

This initial financial commitment expresses your serious intent to purchase. The down payment secures your claim on the property. 

It’s typically 20-25% of the total cost, though specific negotiations might get you some flexibility.

• Application Fees (1-2% of the loan amount)

If you plan to finance a portion of the purchase, most banks charge an application fee. The fee is typically 1-2% of the loan amount. 

This covers expenses related to processing your application and assessing your creditworthiness.

Permits and Permission Fee

To obtain government authorization for your purchase, you have to pay fees to RAJUK or the Ministry of Housing and Public Works. Expect to pay around Tk 300-500.

Although brokerage services that offer faster processing might charge significantly more.

Formal Paperwork: Notarization Fees

This process verifies the authenticity of your signatures and safeguards against future disputes. Expect to pay around Tk 20-30 per attestation, a small price for peace of mind!

Registration Fees: Securing Your Ownership 

• Registration Fee (1% of property value): This official charge legally registers your claim to the property. It’s crucial to protect your investment and ensure its official recognition.
• Stamp Duty (1.5% of property value): Consider this a validation fee levied by the government to authenticate your property documents. The stamp duty also legitimizes the transaction. It acts as a stamp of approval from the authorities.
• Local Government Tax (2% of property value): This tax contributes to the local infrastructure and development. It helps maintain the community you’ll be calling home. The local government tax is a way to participate in the growth and well-being of your surroundings.

Tax Implications: Your Financial Responsibility

• Gain Tax (3-4% of gain): When you eventually sell the property, this tax applies to the profit. The rate varies based on location and property type, so do your research beforehand.
• Transfer Tax (6% of property value): If you transfer the property within 3 years of purchase, this additional tax kicks in. Consider this when planning your long-term property goals.

Value Added Tax (VAT)

Depending on the size and location of your property, VAT might come into play. For flats under 1600 square feet, expect a 2% charge based on the deed value. 

Larger apartments fall under a 4.5% bracket. However, land purchases usually don’t involve VAT unless a developer or real estate company is involved.

You can also opt for insurance and extra loans while registering your land and flat. These costs vary with the size, location, and value of your property.

Final Words

Registering a land or flat in Bangladesh comes with a range of responsibilities and costs. It’s important to stay updated on recent changes in fees and taxes throughout your property journey.

The land and flat registration cost 2024 is now calculated based on mouza rates. For example, in Kafrul, Mohammadpur, and other mouzas of Dhaka district, the registration fee dropped from 8% to 6% or Tk 1.5 lakh per Katha.

The reduction in fees and taxes means lower financial burdens for property buyers in certain areas. Research well before buying a property!