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Significant Taxation Reforms for Pakistan’s Real Estate Sector – FY 2025-26

The federal budget introduces targeted measures to reduce transaction costs, promote housing affordability, and encourage investment in the real estate sector of Pakistan.

Withholding tax reduced across slabs (as low as 1.5%)
FED exemption on transfer of property
Stamp duty reduced from 4% to 1%
Tax credits introduced for homes up to 10 Marla and Apartments up to 2,000 sq. ft
Revival of PRERA and transaction tax exemption for low-cost housing and first-time buyers

These reforms are expected to stimulate market activity, improve transparency, and support end-user ownership.

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