Your brother works in Dubai and wants to buy a flat in Lahore. A client in London asks whether a foreigner can own a house in Islamabad. The answer is yes, but it depends on who the buyer is.
The law treats three kinds of buyers differently: an overseas Pakistani with a NICOP, a person of Pakistani origin with a POC, and a foreign national with no Pakistani link. Each follows different rules.
The short answer
Yes, foreigners can buy property in Pakistan, but not all on the same terms.
Overseas Pakistanis can buy residential and commercial property almost like a resident. The main condition is that the money comes through proper banking channels.
Foreign nationals need approvals first, and they face limits on land like farmland.
Who counts as a foreigner
The word foreigner covers three groups.
- NICOP holders. NICOP is the National Identity Card for Overseas Pakistanis. Citizens living abroad carry it. For property, they are treated almost like residents.
- POC holders. POC is the Pakistan Origin Card, for people of Pakistani origin who are not citizens, like someone who took another nationality. They can also buy property.
- Foreign nationals. A citizen of another country with no Pakistani link. This group faces the strictest rules.
What overseas Pakistanis can buy
A Pakistani living abroad can buy a house, a flat, a shop, or an office. There is no ban on urban property.
The State Bank of Pakistan runs the Roshan Digital Account, or RDA, which lets an overseas Pakistani buy property without visiting Pakistan. The State Bank says RDA investments are fully repatriable, so you can take the sale money back out.
Buyers can also take housing finance. Under the State Bank's Roshan Apna Ghar scheme, a non-resident Pakistani can get a loan for 3 to 25 years, up to 99% of the property value when secured against RDA deposits, or 85% without that lien.
A local rupee loan is also possible. Under Chapter 19 of the State Bank's Foreign Exchange Manual, a Pakistani working abroad can borrow up to 90% of the price of a residential plot, house, or flat, repaid through remittances.
What foreign nationals need
A foreign national with no Pakistani link faces a different path.
The State Bank requires the purchase money to come from abroad through banking channels. Government approvals apply too. Provincial authorities and development bodies issue no-objection certificates, or NOCs, for the property.
Agricultural land is the big limit. Foreign nationals generally cannot buy farmland without special provincial permission. Cantonment and border areas need military clearance.
The honest answer: possible, but you need approvals, and some land is off limits.
The money rules
Every purchase by someone living abroad must follow the Foreign Exchange Regulation Act 1947. Foreign exchange dealings in Pakistan need State Bank permission, which has been given generally for property bought with remittances sent through banks.
In practice the rule is simple: the money must come through a bank. Cash by hand does not count.
Keep every receipt. When you sell, you may need to prove the purchase used remittances to take the money out.
Registration is the point of no return
Under section 54 of the Transfer of Property Act 1882, a sale of immovable property worth Rs 100 or more can only be made by a registered instrument. A verbal deal or a plain paper agreement does not transfer ownership.
So the sequence matters. Verify the property first, pay through the bank, then register the sale deed at the sub-registrar's office. After registration comes the mutation in the land record. If you are new to this, see how to check a property in Pakistan before you buy and read up on property mutation and why it matters.
For an overseas buyer the practical route is a power of attorney. You nominate someone in Pakistan to attend registration on your behalf. The RDA system lets the transfer deed be executed without physical presence.
What tax you pay
Buying and selling property in Pakistan triggers advance income tax under the Income Tax Ordinance 2001.
When you buy, the collector takes advance tax under section 236K. For a filer the rate is 1.5% of the value up to Rs 50 million, 2% between Rs 50 and 100 million, and 2.5% above Rs 100 million. A non-filer pays much more, up to 18.5%.
When you sell, advance tax under section 236C comes off the price. A filer pays 4.5% up to Rs 50 million, 5% up to Rs 100 million, and 5.5% above that.
Overseas Pakistanis get a special break. With a NICOP or POC, if you stay in Pakistan under 183 days in a financial year, you get the filer rate even without filing a return.
Capital gains tax applies when you sell at a profit. The rate depends on how long you held the property and your tax status. One old worry is gone: the deemed income tax on property under section 7E was abolished from tax year 2026-27. Once you own the place, you also pay yearly property tax online.
Stamp duty and registration fees are set by each province, so they differ across Pakistan.
Steps for an overseas Pakistani buying from abroad
- Check the property record first. Get the fard and verify the seller's title.
- Open a Roshan Digital Account and bring the money through it.
- Give power of attorney to someone in Pakistan for the sale.
- Pay through the bank, never in cash.
- Register the deed at the sub-registrar's office.
- Complete the mutation in the land record.
- Pay the advance tax and keep the receipts.
What can go wrong
Most property disputes start with the same mistakes. Money paid before verification. Sale agreements never registered. Token money given to someone who does not own the land.
For a buyer abroad the risks are bigger, because you cannot see the property. Use a registered deed only. Check the fard yourself. If a deal needs an NOC and there is no NOC, walk away.
A local lawyer costs little compared with the value of the property. For foreign buyers, you need one. The only question is when.
What this means for you
Overseas Pakistanis with a NICOP or POC can buy property in Pakistan, and the money can come out again if it came in through a bank. Foreign nationals can buy too, but they need approvals, and agricultural land is mostly closed.
Every purchase must be registered. Every rupee should come through a bank. Keep the records, and the property is yours.
For more, browse the Lexiber blog or start at lexiber.com.
First, check who owns it today. See how to check property ownership in Pakistan.
Ask Lexiber free in English or Urdu. It shows you the exact section behind every answer.
