What tax do I pay when I sell my property in Pakistan while living abroad?

Moving abroad changes a lot about your Pakistani tax position, but it does not change where a property gain comes from. A plot in Islamabad or a flat in Karachi is Pakistani property, and the gain on selling it is taxed in Pakistan. What your overseas status can change is how much tax is collected at the registrar’s desk and whether that amount settles the matter. This page follows the Income Tax Ordinance, 2001 as amended to 30 June 2026, so the rates apply to sales in tax year 2027 (1 July 2026 to 30 June 2027).

What does the law say?

The gain is Pakistan-source. Section 101(9) treats rent from immovable property in Pakistan as Pakistan-source income. Section 101(10) then says “Any gain from the alienation of any property or right referred to in sub- section (9)” is also Pakistan-source income. Residence is not part of the test. A seller living in Jeddah or Birmingham is covered in the same way as a seller in Multan.

The gain is charged under section 37. Section 37(1A) says the gain on disposal of immovable property in Pakistan shall “be chargeable to tax under the head capital gains at the rates specified in Division VIII of Part I of the First Schedule”. For property acquired on or after 1 July 2024, Division VIII sets 15% for a person appearing on the active taxpayers’ list on the date of disposal. For others, it applies the normal slab rates, with a floor of 15% of the gain for individuals. Property acquired on or before 30 June 2024 is taxed on a separate holding-period table.

Advance tax is collected at transfer under section 236C. The person who registers, records or attests the transfer collects tax from the seller at the rate in Division X of Part IV of the First Schedule. After the Finance Act, 2026, that rate is 2.75% of the gross amount of the consideration received. Section 236C(2) makes the tax adjustable, and where the property is bought and sold in the same tax year, it is minimum tax.

When is the 236C tax final for someone living abroad?

A proviso to section 236C(1) changes the treatment for one group of sellers. It applies “if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA)”. For that seller, the tax collected is the final discharge of tax liability in lieu of capital gains under section 37.

All the conditions have to be met together: non-resident for the year, an individual, one of the three identity documents, and the purchase paid through an FCVA or NRVA. A property bought years ago from a local rupee account, or bought while you were still living in Pakistan, does not fit the proviso as written.

What about the higher rate for people not on the active taxpayers’ list?

The Tenth Schedule raises the section 236C rate to 11.5% for a seller who does not appear on the active taxpayers’ list. Clause (111AC) of Part IV of the Second Schedule says that increase does not apply to a “non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP)” on transactions on which tax is collectible under section 236C and the matching tax on purchases. A CNIC is not mentioned in clause (111AC), even though it is mentioned in the final-tax proviso.

Clause (111AC) speaks to the collection rate. Division VIII’s own distinction between persons on and off the list, which sets the capital gains rate, is a separate provision, and the clause does not say that it reaches it.

Worked example (illustrative figures)

Faisal lives in Doha and holds a NICOP. He bought a flat in Bahria Town, Rawalpindi in March 2025 for Rs. 20,000,000 and sells it in October 2026 for Rs. 26,000,000.

Case 1: he paid for the flat through his NRVA.

1. Tax collected under section 236C: Rs. 26,000,000 x 2.75% = Rs. 715,000.
2. The proviso to section 236C(1) makes this the final discharge in lieu of capital gains tax. Nothing more is due on this gain.

Case 2: he paid from a local rupee account and is on the active taxpayers’ list.

1. Tax collected under section 236C: Rs. 715,000, adjustable.
2. Gain: Rs. 26,000,000 - Rs. 20,000,000 = Rs. 6,000,000.
3. Tax on the gain under Division VIII (acquired after 1 July 2024, on the list): Rs. 6,000,000 x 15% = Rs. 900,000.
4. Balance: Rs. 900,000 - Rs. 715,000 = Rs. 185,000.

Case 3: as Case 2, but Faisal is not on the active taxpayers’ list. Because he holds a NICOP and is non-resident, clause (111AC) keeps the collection at 2.75%, so Rs. 715,000. A non-resident seller with only a CNIC who is not on the list would face 11.5%: Rs. 26,000,000 x 11.5% = Rs. 2,990,000.

Do I need to file a return after the sale?

That depends on your other Pakistani income and on which case you fall into. Clause (114A) of Part IV of the Second Schedule switches off the return-filing duty for final-tax income for a person maintaining an FCVA or NRVA, provided the person’s other Pakistan-source taxable income is limited to listed items. One listed item is “capital gain on disposal of immovable property acquired from proceeds of FCVA or NRVA”. In Case 2 and Case 3, the 236C tax is only a payment on account, and the capital gain still has to be worked out and settled. The related page on whether an overseas Pakistani must file a return covers the filing rules in full.

Common mistakes

• Assuming a foreign address makes the gain foreign income. Section 101(10) ties the source to where the property is, not where the seller lives.
• Treating every overseas sale as final at 2.75%. The final-tax proviso depends on how the property was paid for. Being abroad at the time of sale is not enough.
• Assuming a CNIC holder gets the (111AC) relief. The clause names POC and NICOP holders only.
• Forgetting the same-year rule. If the property is bought and sold within one tax year, section 236C(2) makes the tax collected minimum tax.

What to check in the official text

Read section 101(9) and (10), section 37(1A), section 236C(1) with both provisos and 236C(2), Division X of Part IV and Division VIII of Part I of the First Schedule, rule 1 of the Tenth Schedule, and clauses (111AC) and (114A) of Part IV of the Second Schedule. Whether you count as non-resident for the year depends on the residence rules covered on the related residence pages. Tax payable in your country of residence on the same gain, and any treaty relief, is outside this page. Provincial stamp duty and transfer charges are outside this corpus.