CGT Capital Gains Tax on Property Sale in Pakistan 2026
Capital Gains Tax on property in Pakistan: 15% for short-term, 0% if held 4+ years. Everything you need to know.
By ilaan Editorial Desk
Updated 4 Jul 2026
What is Capital Gains Tax (CGT)?
CGT is a federal tax on profit made from selling property. Reintroduced in 2012 and modified multiple times since.
CGT Rates 2026
Less than 1 year: 15%. 1-2 years: 7.5%. 2-3 years: 0% (open plots only). More than 4 years: 0% (all types).
How CGT is Calculated
CGT = (Sale Price - Purchase Price) × CGT Rate. Uses higher of actual price or FBR valuation.
Example 1: Short-term flip (9 months)
Bought PKR 80 lakh. Sold PKR 1 crore. Gain: PKR 20 lakh. CGT: 20 lakh × 15% = PKR 3 lakh.
Example 2: Long-term hold (6 years)
Bought PKR 50 lakh (2020). Sold PKR 1.8 crore (2026). Gain: PKR 1.3 crore. CGT: ZERO (4+ year exemption).
When is CGT Paid?
At time of property transfer (Registry). Sub-Registrar requires proof of CGT payment (CPR from FBR) before registering the sale.
How to Pay CGT
- Login to iris.fbr.gov.pk
- Declaration → Capital Gains
- Enter property sale details
- System calculates CGT automatically
- Generate PSID and pay at bank
CGT Exemptions
4+ year holding: completely exempt. Open plots 2-3 years: exempt. Become FBR filer to save WHT (1% vs 2%).
