How NRBs Can Sell Property in Bangladesh and Legally Repatriate Money to USA, UK & Canada (2026 Guide)

Cross-border financial flows in Bangladesh are governed by the Foreign Exchange Regulation Act, 1947 (FERA), administered by the Foreign Exchange Policy Department (FEPD) of Bangladesh Bank through the Guidelines for Foreign Exchange Transactions (GFET, Vol-1 & Vol-2).

Crucially, Bangladesh operates with full current account convertibility (for imports, services, and travel) but maintains partial capital account convertibility. Under Section 4 and 5 of FERA 1947, no person resident in Bangladesh or holding assets in Bangladesh may transfer capital outside the country without general or special permission from Bangladesh Bank.

However, Bangladesh Bank has enacted targeted circulars recognizing the legitimate property rights of Non-Resident Bangladeshis. Expatriates who acquired property through lawful inheritance or who purchased property using documented inward foreign currency remittances are entitled to repatriate liquidation proceeds, provided all domestic tax liabilities have been extinguished and full source verification is provided.

A buyer may be willing to buy your land on an old manual deed, but Bangladesh Bank will reject outward remittance if the title chain has even a minor administrative defect. Before marketing the asset, the overseas heir must compile an unimpeachable legal dossier:

1. Warishan / Succession Certificate: Issued by the relevant City Corporation Mayor/Councilor or Union Parishad Chairman, certifying all surviving legal heirs of the deceased parent with national ID numbers.
2. e-Namjari (ই-নামজারি ও জমাখারিজ): The ancestral Khatian must be separated, and a distinct digital Mutation Khatian must be generated in the names of the living heirs. Attempting to sell land while it remains registered in the deceased ancestor's name makes it impossible to open the required seller bank account.
3. Digital Land Tax Dakhila (ভূমি উন্নয়ন কর দাখিলা): Up-to-date land tax receipts downloaded from ldtax.gov.bd for the current fiscal year.
4. Non-Encumbrance Certificate (NEC - দায়মুক্ত সনদ): Form 41 certificate issued by the Sub-Registrar certifying that the land is free from prior mortgages, attachments, or lis pendens lawsuits.

The biggest obstacle to legal repatriation is the traditional Bangladeshi market practice of under-declaring deed values and accepting substantial payments in cash (কালো টাকা). Expatriates must strictly reject this practice:

The Golden Rule of Repatriation: Bangladesh Bank will ONLY permit foreign currency remittance equal to the net declared sale value on the registered deed, deposited via official banking instruments, minus verified tax deductions. If you sell a flat for BDT 3 Crore but declare BDT 1.5 Crore on the registered deed, you can NEVER legally transfer the remaining BDT 1.5 Crore out of Bangladesh.

Mandatory Payment Protocols:

• Bank Draft / Account-Payee Pay Order: Issued directly by the buyer's commercial bank payable to the seller's verified bank account in Bangladesh.
• Real-Time Gross Settlement (RTGS): Direct electronic bank-to-bank transfer for instantaneous audit trails.
• Escrow Agreement: For high-value transactions, retaining an advocate to hold the registered deed in escrow until the bank draft clears provides total security for both overseas seller and domestic buyer.

The Income Tax Act, 2023 (আয়কর আইন, ২০২৩) introduced modernized provisions regarding real estate asset disposals and source tax withholding:

A. Advance Source Tax (উৎস কর - Section 125)

Under Section 125 of the 2023 Act, the Sub-Registrar cannot register a sale deed unless advance tax is deducted at source. Rates depend on the geographical location and classification of the property:

• Dhaka, Chattogram & Commercial Hubs: 8% of deed value or statutory square-feet/katha rate (whichever is higher) in prime areas like Gulshan, Banani, Motijheel, Dhanmondi, Uttara.
• Other City Corporations & Municipalities: 4% to 6% of deed value.
• Rural / Upazila Areas: 2% to 3% of deed value.

B. Capital Gains Tax (মূলধনী লাভ কর - Section 89)

Capital gains tax is assessed on the net profit: Sale Consideration minus (Original Acquisition Cost + Documented Improvement Costs + Registration Expenses). For inherited property where acquisition cost was zero or nominal, the fair market value at the time of inheritance is considered. Expatriates must file an annual tax return with their designated NBR Taxes Circle to finalize assessment.

C. Obtaining the NBR Tax Clearance Certificate (কর প্রত্যয়নপত্র)

Once taxes are deposited via Treasury Chalan, the Deputy Commissioner of Taxes (DCT) conducts scrutiny and issues a formal Tax Clearance Certificate under the seal of the National Board of Revenue. This certificate is the single most important document required by Bangladesh Bank to authorize foreign exchange release.

The following table provides a comprehensive overview of statutory taxes and fees applicable to property disposals in Bangladesh:

Repatriating funds is executed through an Authorized Dealer (AD) Commercial Bank (e.g. Standard Chartered Bank, HSBC, BRAC Bank, The City Bank, Eastern Bank):

1. Account Opening & Deposit: Open a Non-Resident Taka Account (NRTA) or specialized resident account. The buyer deposits consideration via account-payee pay order.
2. Filing Form TM (Transfer of Money): The expatriate or their legal attorney submits Form TM to the Foreign Exchange Operations Department of the AD bank, requesting conversion and outward wire transfer.
3. Bank Scrutiny & Dossier Preparation: The AD Bank's compliance department audits the registered deed, title chain, tax clearance certificate, proof of inheritance, and foreign residency documents.
4. Submission to Bangladesh Bank: The AD bank submits the comprehensive dossier to the Foreign Exchange Policy Department (FEPD), Bangladesh Bank Headquarters, Motijheel, Dhaka.
5. Central Bank Scrutiny & Approval: Bangladesh Bank verifies that no money laundering red flags exist and issues a formal Approval Letter.
6. SWIFT Outward Remittance: The AD bank purchases foreign currency (USD, GBP, CAD) at the prevailing interbank exchange rate and transmits the funds via SWIFT to the seller's overseas account in New York, London, Toronto, etc.

Expatriates should choose the correct banking vehicle:

• Non-Resident Investor's Taka Account (NITA): If an expatriate originally bought property in Bangladesh using inward foreign remittance routed through a NITA account, liquidation proceeds can be credited directly back to the NITA account and repatriated outward without prior approval from Bangladesh Bank under standard GFET standing orders.
• Non-Resident Taka Account (NRTA): Used for general income generated in Bangladesh (rents, business proceeds). Remittance requires Bangladesh Bank permission.
• Special Remittance Quota: Under recent Bangladesh Bank policy relaxations, genuine expatriate inheritances can be remitted up to authorized thresholds per fiscal year under controlled commercial bank review without lengthy central bank delays.

A paramount concern for expatriates is whether receiving large property sale proceeds will subject them to crippling double taxation in their resident country:

United States (IRS Compliance):

US citizens and Green Card holders are taxed on worldwide income. You must report the capital gain on IRS Form 1040 (Schedule D). However, under the US-Bangladesh Double Taxation Avoidance Agreement (DTAA), you can claim the Foreign Tax Credit (IRS Form 1116) for source tax and capital gains tax already paid to the Bangladesh NBR, offsetting dollar-for-dollar against your US tax liability.

United Kingdom (HMRC Compliance):

UK residents must declare foreign capital gains on their Self Assessment return. Under the UK-Bangladesh Bilateral Tax Convention, Double Taxation Relief (DTR) ensures credit is given for Bangladeshi taxes paid. Keep all NBR Treasury Chalan receipts and registered sale deeds safely.

Canada (CRA Compliance):

Canadian permanent residents and citizens must declare foreign capital property dispositions on Schedule 3 and file Form T1135 (Foreign Income Verification Statement) if foreign assets exceed $100,000 CAD. Canadian Foreign Tax Credits prevent duplicate taxation on verified remittances.

Prepare this documentation package in triplicate with your legal counsel:

• Original certified copy of the Registered Sale Deed (সাফ কবলা দলিল).
• Chain of title deeds (বায়া দলিল) spanning at least 25 years.
• Original Succession / Warishan Certificate with English translation.
• e-Namjari Khatian, DCR receipt, and current fiscal year Land Tax Dakhila.
• NBR Advance Source Tax Chalan (Section 125) and NBR Tax Clearance Certificate.
• Completed Form TM signed by the applicant or authorized Power of Attorney.
• Proof of overseas residence (US Passport/Green Card, UK Passport/BRP, Canadian Passport/PR).
• Official bank statement showing deposit of buyer's pay order into seller's account.
• Letter of Undertaking from the seller declaring no other remittances were made against the same asset.

Background: Mr. Fakhrul Islam, a British Bangladeshi restaurateur residing in Tower Hamlets, London, decided to sell a 12-decimal ancestral commercial plot in Amberkhana, Sylhet. The agreed sale consideration was BDT 2.8 Crore (approx. £180,000 GBP).

Execution Strategy:

1. Our chamber conducted full due diligence, updated the e-Namjari in Mr. Fakhrul's name, and vetted the buyer's financial credentials.
2. The entire consideration was paid via two Account-Payee Pay Orders from Dutch-Bangla Bank directly into Mr. Fakhrul's Non-Resident Taka Account at Standard Chartered Bank, Dhaka.
3. The sale deed was registered at the Sylhet Sadar Sub-Registry, and 6% advance source tax (BDT 16.8 Lakh) was deposited to the NBR treasury.
4. We filed the capital gains assessment before Taxes Circle-14, Sylhet, and obtained an unreserved NBR Tax Clearance Certificate within 14 working days.
5. We compiled the Form TM file and submitted it through Standard Chartered Bank's Foreign Exchange Operations to Bangladesh Bank.
6. Bangladesh Bank granted outward remittance approval within 5 weeks. Standard Chartered converted BDT 2.63 Crore (net of taxes) into GBP and wired £172,400 directly to Mr. Fakhrul's Barclays Bank account in London via SWIFT.

Avoid these catastrophic mistakes that frequently lead to permanent capital lock-in:

• Accepting Undeclared Cash: Accepting cash under the table leaves you with piles of local currency that cannot be deposited without triggering Anti-Money Laundering (BFIU) freezing orders.
• Attempting Informal Remittance (Hundi): Using Hundi brokers exposes you to criminal prosecution under Section 4 of the Money Laundering Prevention Act 2012 (up to 12 years imprisonment) and forfeiture of all assets.
• Selling on Power of Attorney Without Banking Authority: If an expat executes a Power of Attorney to a relative but forgets to grant specific banking and remittance authority, the agent cannot operate bank accounts or sign Form TM.
• Missing NBR Tax Files: Attempting to remit funds without an active e-TIN and official tax clearance certificate will result in immediate rejection by the commercial bank.

Yes. Outward remittance of property sale proceeds is fully legal under the Foreign Exchange Regulation Act 1947, provided you secure prior approval from Bangladesh Bank through an Authorized Dealer commercial bank supported by an NBR Tax Clearance Certificate.

Once a complete, audited file with all tax receipts, title deeds, and Form TM is submitted by the Authorized Dealer bank, Bangladesh Bank typically issues approval within 4 to 8 weeks.

Advance source tax of 2% to 8% (depending on property location) is collected at the Sub-Registry at registration, which is adjusted against capital gains tax (typically 15% on net capital gains) under the Income Tax Act 2023.

You must report the capital gain on your foreign tax return, but Double Taxation Avoidance Agreements (DTAA) allow you to claim Foreign Tax Credits for all taxes paid to the Bangladesh NBR, generally eliminating duplicate tax.

Yes. Non-Resident Bangladeshis without an NID can use their valid Bangladeshi Passport or foreign passport with a 'No Visa Required' (NVR) seal and Dual Nationality Certificate.

It is strongly advised against. Consideration should be deposited directly into a bank account opened in the name of the legal owner (the expat) to maintain complete audit traceability for Bangladesh Bank and foreign tax authorities.

Form TM (Transfer of Money) is the statutory foreign exchange application form prescribed by Bangladesh Bank for any cross-border outward remittance of funds through Authorized Dealer banks.

Yes. Bangladesh Bank allows phased remittances across different fiscal tranches, or you can wire the entire approved amount in a single lump sum via SWIFT.