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From the buzzing urban life of Karachi and Lahore to the serene beauty of Hunza and the Swat Valley, Pakistan offers a rich mix of experiences for those ready to embrace something new.
In this guide, we’ll walk you through everything you need to know about relocating to Pakistan from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
if you are present in Pakistan on more than 182 days during the tax year.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
if you are a citizen of Pakistan unless you are tax resident overseas.
if you are present in Pakistan on more than 182 days during the tax year.
if you are a citizen of Pakistan unless you are tax resident overseas.
if you are registered with the Italian resident population.
if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.
if you are a Spain national who relocated to a tax haven less than five years ago.
if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.
Providing that you are residing in Pakistan solely for employment purposes for a period of no more than three years, foreign incomes and gains will be exempt from Pakistan taxation providing that the incomes and gains are not remitted to Pakistan.
* Pakistan can be a very tax efficient place to live for expats & nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
If you receive incomes overseas while you are living in Pakistan, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Pakistan has 66 double taxation agreements signed.
