Property Tax and Registration
The cost of buying a property beyond the price, due on the day.
Recent
Formula
How the calculation works
The price on a property is not the money needed to buy it. Stamp duty and registration are charged on that price, so they are not fixed fees; they rise with it. On the example, 2% duty on 5,000,000 is 100,000 and 1% registration is 50,000, so 150,000 has to be found on top of the price.
Both charges are due at the same time as the purchase, which is why the figure matters: a buyer who has exactly the price is short by the charges on the day the deed is signed.
Common mistakes
- Budgeting only the price. The charges are due at completion, so the cash needed is the price plus these fees, and a deal can fail for the difference.
- Assuming the rates are the same everywhere. They differ by country and region and change with budgets, so the figure is only as good as the rates entered.
When to use it
- Use it before making an offer, to work out the total cash the purchase needs rather than only the advertised price.
- It covers the two government charges only. Legal fees, agent commission and any mortgage costs are separate and should be added on top.
Worked example
A 5,000,000 property with 2% duty and 1% registration: 100,000 tax, 50,000 registration, 150,000 in total.
Common questions
Do I add this to the price?
Yes, but as a separate cost. Price plus these charges is the cash needed on the day.
Where do I find the rates?
Rates differ by country and region and change with budgets. Confirm at the local registry office before buying.
Related tools
-
Land Area Converter
Convert between bigha, katha, shotok, acre and square feet.
-
Gold Weight Converter
Convert gold weight between bhori, ana, grams and tola.
-
Zakat Calculator
Work out zakat at 2.5% on wealth above the nisab threshold.
-
Gratuity Calculator
Gratuity due on leaving a job, counted per completed year of service.
-
Remittance Cost
What a remittance really costs once the fee and a weak exchange rate are counted.
-
Compare Two Job Offers
Compare two offers on total yearly value, counting bonus, allowances and commuting.
-
Gold Loan Value
How much a loan against gold is worth, from weight and purity.
-
Interest Only Payment
What interest-only costs each month, and what is still owed at the end.