I must praise the consultant who worked with us and helped us choose the perfect apartment. He understood our requirements very well and helped us accordingly. Great team!
-Morshed Hossain
Can Foreigners Buy Property in Bangladesh?
Under the Foreign Private Investment (Promotion and Protection) Act of 1980, foreigners are allowed to own property in Bangladesh. However, this is subject to government approval, which often involves a lengthy and somewhat unclear approval process.
In Bangladesh, foreigners are permitted to own land and fully own companies, with no restrictions on inheriting assets.
While property disputes are somewhat common in the country, the legal framework aligns with Common Law principles, meaning inheritance and estate claims are handled as civil matters, regardless of the claimant's nationality.
The primary laws governing property ownership are the Transfer of Property Act of 1882 and the Registration Act of 1908.
Neither act explicitly restricts foreigners from buying, selling, or transferring property. Similarly, the Succession Act of 1925, which addresses inheritance matters, does not place specific limitations on foreign nationals regarding intestate or testamentary succession.
Bangladesh's Real Estate Regulations
Real estate regulations are essential in shaping the property market, protecting the interests of buyers, sellers, and investors, while also promoting transparency and accountability. These policies foster trust within the real estate sector by ensuring fair practices and minimizing risks during property transactions. Regarding foreign investment in Bangladesh's real estate market, various laws and guidelines are in place to ensure transparency, protect investor rights, and support sustainable growth. Key regulatory bodies overseeing real estate activities include the Bangladesh Bank, the Bangladesh Investment Development Authority (BIDA), and the Ministry of Housing and Public Works.Types of Properties Available to Foreigners
Generally, foreigners are only permitted to purchase property for residential purposes. Expats have many options for buying apartments or flats in Dhaka's prime areas. However, acquiring land can present challenges. One way to navigate this is by obtaining a business license, establishing a company, and purchasing the land in the company's name to work around the restrictions. It’s also important to note that buying land in areas owned by RAJUK may be difficult, as the organization has prohibited land sales to foreign nationals.Legal Process and Financing Options for Foreign Real Estate Investors in Bangladesh
Although there are no explicit legal restrictions on foreign nationals purchasing property in Bangladesh, the process involves navigating several authorities. Foreign buyers must provide key documents, such as their passport or tax identification number, to validate the transaction. Approval from the Bangladesh Investment Development Authority (BIDA) is required, followed by filing relevant paperwork with local police for security purposes. Proof of financial capability through income documentation is also necessary. When it comes to financing real estate investments, foreign investors have various options. Local banks offer mortgage loans to eligible individuals, though these often come with strict collateral requirements and interest rates. Also, an option of private lending or personal assets can be used for funding, each with its own set of pros and cons depending on the investor's situation.Key Considerations for Buying Property in Bangladesh
Investing in property abroad can be an exciting opportunity, but it's essential to conduct thorough research beforehand. Anyone planning to buy property in Bangladesh should first gain an understanding of the country’s legal system. It’s also highly advisable to work with a local financial advisor, real estate attorney, and real estate agent. These professionals possess deep knowledge of the Bangladeshi property market and can provide valuable guidance in choosing the right property. As you navigate a new culture and environment, your expertise will be crucial. With careful planning, buying property in Bangladesh can be a profitable endeavor, though some aspects may still require further clarification. Even though purchasing property as a foreigner is legally allowed in Bangladesh, you may consider the following points before doing so:- Transferring large sums of foreign currency out of Bangladesh legally can be difficult for non-business individuals. If you plan to sell your property and repatriate the funds quickly, it could be quite challenging.
- The property market, especially in terms of land, is rife with fraudulent groups targeting foreigners. It is crucial to ensure that all documentation and ownership details are obtained from legitimate sources to avoid falling victim to scams.
Inheritance of Bangladeshi Property for Foreigners
Inheritance laws concerning Bangladeshi property can be complex, especially if the heir is not a Bangladeshi citizen. As the child of a Bangladeshi national, you may still have inheritance rights to your parents' property, even without Bangladeshi citizenship. However, the specifics depend on factors such as the type of property, your parent's marital status, and the inheritance laws in effect at the time of their passing. Key points to consider:- If the property is considered joint marital property, you may have a right to inherit as their child, regardless of your nationality.
- For property owned solely by your Bangladeshi parent, inheritance rights could still apply, but these would be subject to current Bangladeshi inheritance laws.
- Inheritance laws in Bangladesh distinguish between ancestral and acquired property, with ancestral properties often having stricter rules that may favor Bangladeshi citizens.
- There could be specific requirements, such as filing an inheritance claim within a certain timeframe.
Foreign Investment in Bangladesh’s Real Estate Sector
According to The Business Standard, foreign individuals and companies have contributed significantly to Bangladesh's real estate sector, purchasing over 2,486 residential flats worth Tk2,542 crore between 2013 and 2022. In 2022 alone, foreign entities spent Tk321 crore on 216 residential units, primarily in areas like Gulshan, Banani, and Uttara. Multinational companies and expatriates, particularly from China, India, and Korea, are the primary buyers, typically opting for mid-range flats due to resale potential. Although foreign ownership of land is restricted, foreigners can buy flats with permission from authorities such as the Bangladesh Investment Development Authority (BIDA) and Bangladesh Bank. However, the approval process is complex, leading some foreign buyers to hesitate.Frequently Asked Questions (FAQs)
What is the process for a foreigner to buy property in Bangladesh?
Important papers, like passports or tax IDs, are required to verify real estate purchases. It is imperative to obtain approval from the Bangladesh Board of Investment. Subsequently, the necessary documentation must be submitted to local police stations for emergency notification.Can a foreigner finance the property purchase through a local bank?
Foreigners usually cannot obtain mortgages from local banks for buying property. According to the Foreign Private Investment (Promotion and Protection) Act of 1980, foreigners are allowed to own property in Bangladesh, but this requires government approval, which often involves a lengthy and uncertain process. It’s best to consider alternative financing options, like using personal funds or seeking international lenders.Is it necessary for a foreigner to have a local partner to buy property in Bangladesh?
Managing the legal and regulatory aspects of purchasing property in Bangladesh can be made easier with the assistance of a local partner or legal representative, though this is not always required. Only dual citizenship holders or transactions made through a company formally registered with the Registrar of Joint Stock Companies (RJSC) in Bangladesh are permitted for foreigners to buy or sell land.testimonials
Thank you for helping us throughout the project and also getting the apartment ready on time. Really happy with the effort of your team and wish you success.
-Mehazabien Chowdhury
Assalamu Alaikum. I want to start by thanking the people at JCX for being very friendly and understanding. I have experienced this kind of cooperation very rarely in this industry. Best Wishes to the company.
-Mohshin Ahmed
JCX Developments BD has made it very easy for us to find and buy the perfect home as we imagined.
-Dina Akhter
Our Awards and Recognition
