Thinking about selling your property in 2025? Before you do, it’s crucial to understand how Capital Gain Tax (CGT) works in Pakistan — especially after the latest updates in the Finance Act 2024–25. Whether you’re a homeowner, investor, or real estate agent, knowing how the holding period and purchase date affect your tax liability can help you save thousands of rupees. Additionally, being informed about the capital gain tax implications can significantly impact your financial decisions.
💡 What Is Capital Gain Tax (CGT)?
The capital gain tax framework in Pakistan requires careful planning and understanding to optimize your returns.
Capital Gain Tax is a tax charged on the profit (gain) you make when you sell a capital asset such as land, a house, a flat, or a plot.
In simple terms:
Capital Gain = Sale Price – Purchase Price
If you sell a property for more than you bought it for, the difference is your capital gain, and the tax you pay on that gain is called Capital Gains Tax.
📅 What Is the Holding Period?
The holding period is the duration between the date of purchase and the date of sale of a property.
Holding Period = Sale Date – Purchase Date
It used to play a key role in deciding how much tax you had to pay — the longer you held a property, the lower the tax rate. However, with the 2025 update, this rule has changed for new purchases.
⚖️ Capital Gains Tax Regime in 2025
The CGT system in Pakistan now has two different regimes based on when you acquired your property.
🏗️ 1. Properties Purchased On or Before 30 June 2024 (Old Regime)
If you purchased your property on or before 30 June 2024, your CGT depends on how long you held the property and what type of property it is — open plot, constructed property, or flat.
CGT Rates (Old Regime)
| Holding Period | Open Plots | Constructed Property | Flats |
|---|---|---|---|
| Up to 1 year | 15% | 15% | 15% |
| >1 to ≤2 years | 12.5% | 10% | 7.5% |
| >2 to ≤3 years | 10% | 7.5% | 0% |
| >3 to ≤4 years | 7.5% | 5% | 0% |
| >4 to ≤5 years | 5% | 0% | 0% |
| >5 to ≤6 years | 2.5% | 0% | 0% |
| More than 6 years | 0% | 0% | 0% |
Key takeaway:
The longer you hold the property, the less tax you pay — and after a certain period (depending on the type), no CGT applies at all.
🏘️ 2. Properties Purchased On or After 1 July 2024 (New Regime)
The Finance Act 2024–25 completely redefined how CGT is calculated on newly purchased properties.
Under the new rules:
- If you are an Active Taxpayer (on ATL) → Flat 15% CGT rate, regardless of holding period.
- If you are Not on ATL (non-filer) → CGT applies at your normal income tax rates (ranging from 15% to 45%), but never less than 15%.
✅ In short:
For new properties, the holding period no longer affects your CGT rate.
📊 Why the Change?
The government simplified the CGT system to:
- Encourage tax filing (by rewarding ATL status)
- Discourage speculative short-term property flipping
- Increase transparency in real estate transactions
So now, your ATL status is more important than how long you held the property.
🔢 Example Calculation
Let’s understand it with an example:
Mr. Ali bought a plot for Rs. 10,000,000 on 15 January 2022, and sold it for Rs. 14,000,000 on 20 January 2025.
Capital Gain = 14,000,000 – 10,000,000 = 4,000,000
Holding Period = 3 years
Since the property was purchased before 30 June 2024, the old regime applies.
For open plots held between 2 and 3 years, the CGT rate is 10%.
So,
Tax Payable = 4,000,000 × 10% = Rs. 400,000
🧮 Instantly Calculate Your Holding Period and CGT Online
Manually calculating dates and rates can be confusing — that’s why we created a Built-in Holding Period & CGT Calculator on our website.
👉 Try our Holding Period Calculator here
Just enter your:
- Purchase Date
- Sale Date
And our tool will instantly:
- Calculate your exact holding period
- Tell you whether the old or new regime applies
- Show the applicable CGT rate
No spreadsheets, no guesswork — everything is calculated for you in seconds.
🏁 Final Thoughts
Capital Gains Tax is an unavoidable part of property investment in Pakistan, but understanding the rules helps you plan better and avoid surprises.
- If you bought property before July 2024, your holding period still matters — longer holding means lower CGT.
- If you buy after July 2024, the tax rate is flat 15% (for ATL filers).
- Use our free online calculator to get accurate results instantly.
By staying updated with the latest rules and using the right tools, you can make informed property decisions — and ensure you’re never paying more tax than required.