Blog Details

Can Foreigners Buy Land in Bangladesh? Complete 2025 Legal Guide

Whether a foreigner can purchase land in Bangladesh?

A foreigner cannot register title in their own name unless the transfer is lawful under both property law and investment law. Most often, the land is registered in the name of a Bangladeshi-incorporated company owned by the foreign investor.

The Legal Framework for the registration of land by a foreigner in Bangladesh:

1. Property & Land Laws

• Transfer of Property Act, 1882
• Registration Act, 1908
• Land Development Tax Ordinance, 1976
• Land Holding Limitation Order, 1972

2. Foreign Investment Policy & Approvals

• Foreign Private Investment (Promotion and Protection) Act, 1980
• BIDA (Bangladesh Investment Development Authority) Guidelines
• Special regimes for EPZ (Export Processing Zone), EZ (Economic Zone), Hi-Tech Park.

Mandatory Approvals / Evidence Required

🔰 BIDA Approval

The BIDA is the primary regulator for foreign investors.

It provides approvals for:

• Project registration and permission for land use
• Visa & work permits for foreign staff
• Liaison/branch/representative offices.

 For land purchase or lease by a foreigner or their company, the Sub-Registrar usually asks to see the BIDA project approval letter.

🔰  Ministry of Land / Special Permission

For agricultural land or khas/government land, a separate approval or lease allotment order from the Ministry of Land is required. Such land is generally not open to private foreign purchase without government consent.

🔰 Corporate Registration (RJSC)

 If the transferee is a company (which is the usual practice), it must be incorporated in Bangladesh under the Companies Act, 1994.

 The Sub-Registrar requires:

• Certificate of Incorporation,
• Memorandum & Articles of Association,
• Board Resolution authorising the purchase.

The Land Administration Manual-3 specifically instructs mutation officers to verify these documents for land registered to a company or other corporate body.

🔰 Compliance with Land Ceiling

The purchase must respect the ceiling in the Land Holding Limitation Order, 1972. Land Administration Manual-3 directs mutation officers to refuse name entry if the transfer breaches the ceiling; Sub-Registrars usually demand a declaration of compliance before registration.

🔰 Taxation & Fees

3. Practical Steps for a Foreign Investor will be to :

✅ Decide investment mode:

•  Incorporate a company locally (most common), or
•  Obtain BIDA approval for a branch/liaison office (not normally used for holding land).

✅ Get BIDA project registration & land-use permission.

✅ If land is khas/agricultural, obtain specific allotment or permission from the Ministry of Land.

✅ Execute registered deed (sale deed or lease) at the Sub-Registrar’s office with:

• BIDA approval letter,
• RJSC company documents
• Land ceiling compliance declaration.

✅ Pay stamp duty & registration fees.

✅ Apply for mutation at AC-Land office with registered deed, tax receipts, and approvals.

While foreign individuals cannot directly own land in Bangladesh, they can invest through a locally registered company with proper BIDA approval and regulatory compliance. Understanding these requirements ensures that a foreign investor’s land purchase is legally valid and secure.

This article is part of The Justice Corner’s Legal Insights series — providing clear, updated explanations of Bangladesh’s laws for businesses and investors.

About the Author