Property Registration Fees in Bangladesh 2026: Stamp Duty, Source Tax, Local Tax and VAT with Worked Examples

Property registration fees Bangladesh: what a transfer costs in 2026

Property registration fees Bangladesh buyers and sellers face in 2026 are not one fee but a stack of five or six separate charges, each set by a different law and paid through a different channel before the sub-registrar will accept a deed. The registration fee, stamp duty and local government tax are flat percentages of the deed value. The source tax under section 125 of the Income Tax Act 2023, still widely called "gain tax", is not: it turns on the mouza, the class of land and a minimum amount per decimal, and it is usually the largest single item. New flats add VAT and the developer's own tax; every transfer ends with a mutation fee at the land office.

This guide sets out every charge as it stands under the Source Tax Rules 2026 that took effect on 1 July 2026, the Finance Act 2026, the current VAT rules and the registration fee schedule, and then works through four complete examples: a Gulshan plot, a resale flat in Dhanmondi, a new developer flat in Mohammadpur and rural land in an upazila. The registration process itself, the documents and the mutation procedure are covered in our separate guides and are linked rather than repeated here.

Summary: A standard sale deed in 2026 attracts a 1% registration fee, 1.5% stamp duty, a 2% or 3% local government tax depending on location, and source tax under section 125 of the Income Tax Act 2023 at 2% to 5% of the deed value or a fixed minimum per decimal, whichever is higher, plus a separate tax on any building or flat. Developer sales add section 126 tax and VAT of 2% or 4.5%. In most urban transactions the total lands between roughly 8% and 14% of the deed value.

Key point: The source tax is the charge that decides the bill. Under rule 6 of the Source Tax Rules 2026, land in Gulshan, Banani, Motijheel and Tejgaon is taxed at 5% of the deed value or up to Tk 9 lakh per decimal, whichever is higher, while land in an ordinary upazila is taxed at 2% or Tk 500 per decimal. Any building or flat on the land carries an additional tax of up to 8% of its stated value.

At a glance

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Table of Contents

What property registration fees Bangladesh law imposes in 2026

Every sale of land, a building or a flat must be registered at the sub-registry office for the area where the property lies, and the sub-registrar will not register the deed until each charge has been paid and the proof attached. The charges fall into two groups. The first group is percentage-based and the same everywhere in kind: the registration fee, stamp duty and local government tax. The second group depends on the property and the parties: the source tax under section 125 of the Income Tax Act 2023, the developer tax under section 126, and VAT on new buildings and flats.

The legal basis for the largest charge is direct. Section 125(1) provides that a registering officer shall not register a transfer document unless the transferor has paid tax at the prescribed rate, and section 125(2) caps that rate at the higher of Tk 20 lakh per katha of land, Tk 1,000 per square foot of any building or flat, or 10% of the deed value.[2] The actual rates, which sit well below those ceilings, are prescribed in rule 6 of the Source Tax Rules 2026, published in the Bangladesh Gazette on 5 July 2026 and in force from 1 July 2026.[1]

The components at a glance

For a sale between individuals, the sub-registry collects a 1% registration fee, 1.5% stamp duty, 2% or 3% local government tax and the section 125 source tax, plus small fixed charges.[5] [11] When a developer sells a new flat, section 126 tax and VAT are added.[1] [7]

Why the figures quoted online are often wrong

Many published tables still show the pre-July 2025 source tax rates of 8%, 6% and 4%. Those were cut to 5%, 3% and 2% in the 2025–26 budget, and the cuts are carried into the 2026 rules.[9] [1] Many also ignore the per-decimal floor, which in prime areas is often the figure that applies. Any estimate of property registration fees Bangladesh buyers rely on should start from the 2026 rules.

Registration fee: 1% of the deed value

The registration fee is fixed by government notification under section 78 of the Registration Act 1908. Notification SRO No 196-Law/2020, in force from 5 July 2020, sets the fee for ordinary deeds at 1% of the value stated in the deed, subject to a minimum of Tk 100 where the deed value does not exceed Tk 10,000.[5] There is no upper cap on the percentage fee for a sale deed, so a Tk 5 crore conveyance attracts a registration fee of Tk 5 lakh.

In practice the registration fee is paid by pay order drawn in favour of the government, while very small amounts can still be paid in cash at the registry. The sub-registry's published schedule states that for deeds worth more than Tk 24,000 the fee is paid by pay order, and for deeds at or below that value it is paid in cash at the office.[11] The fee is calculated on the full consideration in the deed, including the value of any building or flat transferred with the land.

Registering the baina (agreement for sale)

Where the parties sign an agreement for sale before the sale deed, it must itself be presented for registration within sixty days of execution under section 17A(2) of the Registration Act, as amended in 2026. Section 78A fixes the registration fee for such an agreement by the value of the property: Tk 500 where it is not more than Tk 5 lakh, Tk 1,000 above Tk 5 lakh up to Tk 50 lakh, and Tk 2,000 above Tk 50 lakh.[14] A baina in a city corporation, pourashava or cantonment area also requires proof of return from both parties.[1] The agreement's terms and consequences are covered in our baina deed guide.

Stamp duty on the conveyance: 1.5%

Stamp duty on a conveyance is charged under Schedule I of the Stamp Act 1899 and is currently 1.5% of the value set out in the deed. A cut to 1% was announced with the 2025–26 budget, but the rate in force after the budget was finalised remained 1.5%, and the sub-registry's current schedule still applies 1.5%.[10] [9] [11] The same schedule records that up to Tk 1,200 may be paid in non-judicial stamp paper, with the balance paid by pay order.[11]

Who pays the stamp duty

Section 29(c) of the Stamp Act provides that, in the absence of an agreement to the contrary, the expense of the stamp on a conveyance is borne by the grantee, that is, the buyer.[6] Parties are free to agree a different split, and the sale agreement should say so expressly.

Understating the consideration

Section 27 of the Stamp Act requires the consideration and all facts affecting the duty to be fully and truly set out in the instrument. Under section 64, a person who omits or misstates those facts with intent to defraud the government is liable to a fine of up to Tk 50,000 and to pay the duty lost.[6] That is the first of several reasons, discussed below, why declaring a deed value below the real price is a false economy.

Local government tax by city, pourashava and union

Local government tax is a tax on the transfer of immovable property collected at registration for the local authority in whose area the property lies. It is calculated on the deed value and paid by a separate pay order. The sub-registry schedule applies 2% in city corporation and cantonment board areas and 3% in all other areas.[11] Press summaries of the 2025 budget described the split slightly differently, as 3% in union parishad areas and 2% in city corporations and municipalities, and that tax was left unchanged.[10]

The descriptions diverge only for pourashava land, by one percentage point, or Tk 50,000 on a Tk 50 lakh deed. Of all the property registration fees Bangladesh sub-registries collect, this is the one to confirm locally before the pay order is drawn.

Source tax under section 125: the "gain tax" by mouza

The charge most people call "gain tax" is now the tax collected on transfer of property under section 125 of the Income Tax Act 2023. It is collected from the transferor at the point of registration, which is why it is administered by the sub-registrar rather than the tax office.[2] Rule 6(1) of the Source Tax Rules 2026 provides that the registering officer shall not register the deed unless the transferor attaches a copy of the pay order as proof of payment at the rates in two tables.[1]

How the rate is chosen

Table 1 of rule 6 divides urban Bangladesh into seven groups of mouzas, named by police station or city corporation, and six classes of land. For each combination the tax is a percentage of the land value stated in the deed or a fixed amount per decimal, whichever is higher. Table 2 covers everything else: mouzas in other pourashavas and mouzas in upazilas outside any pourashava.[1] The fixed amount works as a floor. Where the deed value is high, the percentage applies; where it is low, the per-decimal minimum takes over.

The six land classes

Rule 6(8) defines the classes. Class A is a commercial plot, and Class B a residential plot, in an area controlled by the National Housing Authority, the Public Works Department, a cantonment board, RAJUK, the Chattogram, Gazipur, Khulna, Rajshahi or Cox's Bazar development authority, or a similar development authority under the housing ministry. Class C is a commercial plot, and Class D a residential plot, in an area established by a private developer outside those authorities. Class E is any industrial plot, and Class F is all other land.[1] Rule 6(3) adds that if the remarks column of the deed does not clearly state whether the land or building is residential, commercial or industrial, the tax is treated as not properly collected, so the deed must describe the use.

The additional tax on buildings and flats

Where the land being transferred carries a building, house, flat, apartment or floor space, rule 6(2) adds a second tax on the structure. On land in Classes A to D it is Tk 800 per square metre or 8% of the structure's value in the deed, whichever is higher. On Class E land and in the Table 2 pourashava mouzas it is Tk 500 per square metre or 6%, and in all other cases Tk 300 per square metre or 6%.[1] For a resale flat this structure tax is usually larger than the tax on the land share, as Example 2 shows.

Deeds exempt from section 125 tax

Rule 6(5) excludes mortgage deeds; transfers by the United Nations and its agencies or by a foreign embassy or mission; no-claim deeds that do not extinguish title; partition deeds (bantonnama); waqf and debottor endowments; and deeds without consideration, such as wills and exchange deeds.[1] Section 125(3) also excludes bank sales under a power of sale, mortgages to lenders and approved sukuk vehicles.[2] Transfers by statutory government bodies are not exempt; rule 6(4) expressly applies the tax to them.[1] Gifts follow their own regime, which our guide to heba and gift registration explains.

Proof of return and payment by A-challan

In city corporation, pourashava and cantonment board areas, no sale deed, bainanama or power of attorney over land, a building or a flat can be registered unless both the transferor and the transferee produce proof of submission of an income tax return (PSR).[1] The tax itself must be deposited in the government treasury through separate A-challans before the deed is registered, under rule 6(7).[1] The 2026–27 Finance Bill proposed extending return-proof requirements to partition deeds and mutation, but that proposal was dropped when Parliament passed the bill on 29 June 2026.[13]

Who bears it, and whether it is final

The statute places the section 125 tax on the transferor.[2] Commercially, the sale agreement decides who bears it, and buyers often agree to pay all registration costs. For the seller, the Finance Act 2026 changed the tax character of this payment: capital gains on the transfer of property are no longer treated as final tax, so the amount collected at registration operates as an advance against the seller's actual liability in the return rather than a full settlement.[4] [3]

Developer sales: section 126 tax and VAT on flats

When a developer or real estate developer sells a flat or a developed plot, two further charges apply. The definition is wide. Rule 2 of the 2026 rules treats as a developer anyone who develops land or builds on their own or another's land for sale, including a landowner acting like a developer, and lists activities such as selling land developed under an irrevocable power of attorney or building roads through land to sell plots. Selling part of a large holding for personal need, or a cooperative transferring land to its members, is not developer activity.[1]

Section 126 tax per square metre

Under rule 7(1), a developer's transfer of a building or apartment cannot be registered unless the developer pays tax per square metre of floor area. Residential rates fall from Tk 1,600 in Gulshan, Banani, Motijheel and Tejgaon, through Tk 1,500 (Dhanmondi group), Tk 1,400 (Mohammadpur group), Tk 1,300 and Tk 700, to Tk 300 outside the listed areas. Commercial rates run from Tk 6,500 down to Tk 1,000 per square metre.[1]

Under rule 7(2), a developer's transfer of the land appurtenant to the building, or of land it has developed, carries tax at 5% of the land value in Dhaka, Gazipur, Narayanganj, Munshiganj, Manikganj, Narsingdi and Chattogram districts and 3% elsewhere. Rule 7(5) requires the rule 6(1) tax on land to be collected as well, but not the rule 6(2) structure tax.[1] Section 126(2) of the Act caps these at Tk 1,600 and Tk 6,500 per square metre and 5% of the land value.[2]

VAT on new flats and developed plots

Under the VAT Deduction and Collection at Source Rules 2025 (SRO No 182-Law/2025/310-Mushak, in force from 1 July 2025), VAT is collected on supplies by a building construction organisation at 2% for flats of 1 to 1,600 square feet and 4.5% for flats of 1,601 square feet and above, and on supplies by a land development organisation at 2%.[7] Those rates were not changed by the June 2026 amendment to the same rules. The same table lists 2% on re-registration of a flat of any size.[7] In practice VAT is deposited by A-challan with the section 126 tax before registration.[11]

VAT on resale flats: check before you pay

The Finance Ordinance 2025 kept land developers and real estate organisations within the VAT net but added the sale or transfer of buildings, and their registration, by other persons to the list of exempt services.[8] Read with the 2% re-registration line in the collection rules, the position on a private resale is not uniform in practice. Before registering a resale flat, confirm with the sub-registry whether re-registration VAT is being demanded and on what basis, and price the deal so that the answer does not derail completion.

Deed value, mouza rates and the cost of under-declaring

Every percentage charge runs off the value stated in the deed, and deeds are registered by reference to the government's minimum value for the mouza. Those minimum values are fixed under the Fixation of Lowest Market Price of Property Rules 2010, which base each mouza's value on the prices registered there in earlier years.[10] Because mouza values lag the market, most deeds are registered at or near the mouza rate and many deeds in Dhaka record a price far below what was actually paid. The 2025–26 budget announced a move to market-based valuation through committees led by divisional commissioners and deputy commissioners; check the current mouza value for the plot with the sub-registry before fixing the deed value.[10]

Why the gap is narrower than it looks

The per-decimal floors in the 2026 rules mean that in prime areas the source tax no longer falls in step with a low deed value. In Gulshan, a Class A plot pays at least Tk 9 lakh per decimal whatever the deed says.[1] Under-declaring therefore trims the smaller property registration fees Bangladesh law imposes, but often not the largest one.

The legal risks of a low deed value

The risks run the other way. Under the Finance Ordinance 2025, where the actual sale price exceeds the registered value, the excess is treated as capital gain, subject to bank and documentary verification.[8] A self-disclosure route for undisclosed money in property deals was proposed in the 2026–27 budget but withdrawn before the Finance Bill was passed.[13] The buyer is also left with a deed that understates their investment, which complicates their own tax return, any later resale, and the measure of any refund if the deed is ever cancelled. Our due diligence guide covers how to check the title before any of these figures are paid.

Worked examples using the 2026 rates

The four examples below apply the 2026 rates to realistic transactions. Each uses the deed value as the base, rounds to the nearest taka, and excludes the small fixed fees and professional costs discussed later. They are illustrations of how the property registration fees Bangladesh sub-registries collect are built up, not quotations; class, mouza and deed wording must be checked on the actual file.

Example 1: residential plot in Gulshan

A buyer acquires a 5-katha RAJUK residential plot in Gulshan (Class B, mouza group 1), which is 8.25 decimals, at a deed value of Tk 20 crore. The source tax is the higher of 5% of Tk 20 crore (Tk 1,00,00,000) and Tk 3,50,000 × 8.25 decimals (Tk 28,87,500), so Tk 1 crore.[1]

If the same plot were registered at a deed value of Tk 4 crore, 5% would be only Tk 20 lakh, so the floor of Tk 28,87,500 would apply instead. The source tax would then be 7.2% of the deed value, not 5%, which shows how the floor blunts any saving from a low declared price.

Example 2: resale flat in Dhanmondi

An individual sells a 1,500 square foot flat (about 139.35 square metres) in Dhanmondi with an undivided land share of 1.25 decimals on a RAJUK residential plot (Class B, group 2). The deed states Tk 60 lakh for the land share and Tk 1.6 crore for the flat, Tk 2.2 crore in total. The land tax is the higher of 5% of Tk 60 lakh (Tk 3,00,000) and Tk 3,00,000 × 1.25 (Tk 3,75,000). The structure tax is the higher of 8% of Tk 1.6 crore (Tk 12,80,000) and Tk 800 × 139.35 square metres (about Tk 1,11,484).[1]

If the sub-registry demands 2% re-registration VAT, a further Tk 4,40,000 is added and the total rises to Tk 30,85,000, about 14% of the deed value.[7] The structure tax is the driver: more than three times the tax on the land share.

Example 3: new developer flat in Mohammadpur

A developer sells a new 1,300 square foot flat (about 120.77 square metres) in Mohammadpur at Tk 1.3 crore, of which Tk 25 lakh is a 1-decimal land share on a Class B plot. Section 126 tax is Tk 1,400 per square metre; rule 7(2) adds 5% of the land value; rule 7(5) applies the rule 6(1) land tax but not the structure tax; and VAT is 2%.[1] [7]

Allotment letters usually pass all of these to the buyer. Ask for the challan copies and check them against the floor area in the deed.

Example 4: agricultural land in an upazila

A buyer acquires 33 decimals of agricultural land in a union outside any pourashava for Tk 30 lakh, above the mouza minimum. The source tax is the higher of 2% (Tk 60,000) and Tk 500 × 33 decimals (Tk 16,500), so Tk 60,000.[1] Stamp duty is Tk 45,000, the registration fee Tk 30,000 and local government tax at 3% Tk 90,000, giving Tk 2,25,000, or 7.5% of the deed value.[6] [5] [11] Add Tk 1,170 for e-mutation afterwards.[12]

Contrast a 5-decimal homestead plot in a non-district pourashava registered at Tk 20 lakh. Two per cent is Tk 40,000, but the Table 2 floor of Tk 10,000 per decimal produces Tk 50,000, so the floor governs.[1] Small plots in growing pourashava towns are where buyers are most often surprised by the minimum.

Smaller fees and practical costs at the sub-registry

The sub-registry schedule also lists an e-fee of Tk 100, copying fees charged per page of 300 words, a Tk 10 court fee on the transfer notice application, and an affidavit on Tk 300 stamp paper attached to the original deed.[11]

Professional costs sit outside the schedule: the deed writer, the lawyer reviewing title, search fees and bank charges. A certified khatian copy costs Tk 120 and a mouza map Tk 545 per sheet under the Ministry of Land's fees.[12] Deed drafting itself is outside the scope of this cost guide.

After registration: mutation and e-namjari fees

Registration transfers title, but the record of rights must then be updated in the buyer's name through mutation (namjari) at the Assistant Commissioner (Land) office. The official e-mutation fee is Tk 1,170: a Tk 20 court fee, a Tk 50 notice fee, a Tk 1,000 record-correction fee and a Tk 100 khatian supply fee, all payable online. In February 2026 the Ministry of Land confirmed those figures, directed every land office to display its fees, and stated that no other fee may be charged; complaints go to the 16122 hotline.[12]

The 2026–27 Finance Bill would have required proof of a tax return for mutation in urban areas, but that requirement was removed before the bill passed.[13] The procedure, documents, hearing and timelines are set out in our land mutation guide, and the steps at the sub-registry in our property registration process guide.

How and when the charges are paid

Sequencing matters because each charge has its own payment instrument and the sub-registrar checks all of them before registration. The source tax and any section 126 tax and VAT are deposited through separate A-challans before the registration date; stamp duty is paid partly in non-judicial stamps and partly by pay order; registration fee, e-fee and local government tax are paid by separate pay orders; and copying fees are paid at the office.[1] [11] The documents and appearance before the sub-registrar are covered in the registration process overview.

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Mistakes that inflate property registration fees Bangladesh buyers pay

The common errors are avoidable: pricing from an old 8% or 6% table, or misreading the land class so the per-decimal floor is understated and the deed is held back. Omitting the residential or commercial description in the remarks column means the tax is deemed not properly collected under rule 6(3).[1] Failing to agree in writing who bears each charge leads to disputes on the registration day, when the parties have least leverage.

For transactions above a few crore taka, or where a company, a non-resident or a developer is involved, the property registration fees Bangladesh law imposes should be modelled in the term sheet, not discovered at the registry. TRW's real estate investment practice prepares that model, and our tax compliance team advises sellers on how the 2026 change to final-tax treatment affects their return.

Checklist for budgeting property registration fees Bangladesh buyers pay

Before signing a sale agreement, establish five facts: the mouza and police station, the land class under rule 6(8), whether a building or flat is included and its floor area in square metres, whether the seller is a developer, and whether the property lies in a city corporation, cantonment, pourashava or union. With those facts, the property registration fees Bangladesh sub-registries will collect can be calculated to the taka from the 2026 rules.[1]

Then fix a defensible deed value, agree who bears each charge, confirm the local tax and any VAT with the sub-registry, and line up pay orders and A-challans. Finally, budget Tk 1,170 for e-mutation.[12] For a review of a specific deal, speak to our land records team.

Frequently asked questions

What do property registration fees Bangladesh buyers pay add up to in 2026?

For a sale between individuals it is the 1% registration fee, 1.5% stamp duty, 2% or 3% local government tax and the section 125 source tax of 2% to 5% or a per-decimal minimum, plus up to 8% on any building or flat. In our examples the total ranges from about 7.5% for rural land to about 12% to 14% for a Dhaka resale flat.

What is the gain tax on land registration in Bangladesh?

"Gain tax" is the common name for the tax collected on transfer of property under section 125 of the Income Tax Act 2023. Under rule 6 of the Source Tax Rules 2026 it is 5%, 3% or 2% of the land value in the deed depending on the mouza, or a fixed amount per decimal if higher.

Who pays the registration costs, buyer or seller?

By law the section 125 tax falls on the transferor and stamp duty on the buyer unless otherwise agreed. In practice the sale agreement allocates every charge, and buyers often agree to bear all registration costs, so put the split in writing before the deed is prepared.

How much is stamp duty on a sale deed?

Stamp duty on a conveyance is 1.5% of the deed value. Up to Tk 1,200 can be paid in non-judicial stamp paper and the balance by pay order. The 2025 proposal to cut it to 1% was not implemented.

Is local government tax 2% or 3%?

It is 2% in city corporation and cantonment board areas and 3% in union parishad areas. For pourashava land, confirm the rate with the sub-registry, because published summaries differ.

How much VAT is payable on a new flat?

VAT on flats supplied by a developer is 2% for flats up to 1,600 square feet and 4.5% for larger flats under the 2025 VAT collection rules. Plots sold by a land development organisation carry 2%.

Can I reduce the costs by registering at the mouza value?

Deeds are registered by reference to the mouza minimum, and in many urban areas the per-decimal floor means the source tax barely falls with a lower deed value. Under-declaring also exposes the parties to stamp duty penalties and treatment of the undeclared excess as capital gain.

Do I need a tax return to register property?

Yes in city corporation, pourashava and cantonment board areas: both seller and buyer must show proof of submission of return for a sale deed, bainanama or power of attorney. A 2026 proposal to extend this to mutation and partition deeds was dropped.

What does e-namjari cost after registration?

The official e-mutation fee is Tk 1,170, made up of a Tk 20 court fee, Tk 50 notice fee, Tk 1,000 record-correction fee and Tk 100 khatian fee, all paid online. No other fee is permitted.

Is the tax paid at registration the seller's final tax?

Not any longer. Under the Finance Act 2026, capital gains on the transfer of property are no longer treated as final tax, so the amount collected at registration is credited against the seller's actual liability in the return.