Foreign investment refers to investment made by individuals or companies of other countries. These types of investments play a vital role in the development of a country’s trade, business and important infrastructures. Foreign investment not only provides financial assistance but also offers technology and expertise in management related to the project. An investor holds 10% or more ownership or stake for a certain period, depending on the legal rules and regulations of both countries.
Foreigners or overseas companies are permitted to invest or own properties in Bangladesh according to the Foreign Private Investment (Promotion and Protection) Act of 1980. As it depends on government approval, it involves a lengthy and troublesome process which often demotivates investors.
How Foreigners Can Legally Buy Property in Bangladesh
According to laws and regulations, currently, foreigners are allowed to buy only residential properties in Bangladesh. Any licensed company can buy land in its’s own name by meeting all requirements of the authority. Prime areas of Dhaka, such as Gulshan, Bannani, Uttara and etc because these area are considered as posh residential areas. One important fact to remember is that lands owned by RAJUK (Rajdhani Unnayan Kartripakkha) are difficult to buy because this organization has restricted land sales to foreigners.
Several Journals reported that foreign investors hold a significant portion of Bangladesh real estate industry. Approximately 2,486 residential flats were sold to foreign individuals and companies between 2013 to 2022; those flats were worth about 2,542 core BDT, and 321 core BDT had been spent in 2022 alone.
A foreign buyer must provide the following documents to buy properties:
- Passport
- Passport-sized Photographs
- TIN (Tax Identification Number)
- BIDA (Bangladesh Investment Development Authority) approval letter
- Bank Transaction Receipts
- Approved Building Plan
- Proof of Remittance
- Original Title Deed (for seller)
- Sale Agreement (Bayna Name)
- Mutation Certificate
- RAJUK Approval (if property owned by RAJUK)
- Encumbrance Certificate
- Deed and Previous Ownership Documents
- Police Clearance
Submitting all documents to the local Sub-Registrar Office, a foreign will be eligible to buy property in Bangladesh. In the final step, the buyer and seller must be present at Sub-Registrar Office during the name transfer. However, the process of approval is difficult and involves hassles that lead a foreign investor to hesitate in some cases.
