Relocation intelligence

🇵🇰 Moving to Pakistan: tax, residency and cost of living

Pakistan taxes the worldwide income of tax residents. Salaried income tax rises to 35 percent, with a 9 percent surcharge above PKR 10 million, effectively around 30 percent at income near the equivalent of EUR 54,000. VAT is 18 percent, corporate tax 29 percent and capital gains tax 15 percent. There is no wealth tax and no inheritance tax. The cost of living is very low.

Thinking of moving to Pakistan? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
35%
Corporate tax
29%
Capital gains
15%
Wealth tax
No
Inheritance tax
No
Cost of living index
30
Safety
4/10
Internet quality
5/10
Visa-free destinations
33
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

Tax residents are taxed on worldwide income. Salaried income tax rises to 35 percent, with a 9 percent surcharge above PKR 10 million. VAT is 18 percent, corporate tax 29 percent and capital gains tax 15 percent. There is no wealth tax and no inheritance tax.

Residency and visas

There is no golden visa program and no residence route through investment. Residence permits usually run through employment or business activity, and naturalization is difficult.

Property ownership

Foreigners may own residential property. Registration and title transfer can be bureaucratic, so thorough due diligence beforehand is advisable.

Cost of living and quality of life

Pakistan is a large South Asian country of about 240 million people, home to the Himalaya and Karakoram ranges including K2, with a coastline on the Arabian Sea. The cost of living is very low.

Passport and mobility

The Pakistani passport is very weak, ranking around 33 globally, with limited visa free access. Naturalization is difficult in practice.

Why people move to Pakistan

  • Very low cost of living

    Daily expenses, housing and services are very affordable, so a foreign income stretches a long way.

  • Large market and dramatic landscapes

    With about 240 million people the domestic market is large, while the Karakoram and Himalaya include some of the highest mountains on earth.

Honest trade-offs

  • Fiscale inwoners worden belast op hun wereldwijde inkomen, en de loonbelasting loopt op tot 35 procent met een surtaks van 9 procent boven PKR 10 miljoen.
  • Het Pakistaanse paspoort behoort tot de zwakste ter wereld, rond plaats 33, met zeer beperkte visumvrije toegang.
  • Er is geen golden visa of verblijfsroute via investering, en naturalisatie is in de praktijk moeilijk.

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Sources

Other destinations