Bangladesh Inheritance & Gift Tax Guide 2026

No Inheritance Tax (Estate Duty Repealed)

Bangladesh does not impose any inheritance tax, estate duty, or death tax. The Estate Duty Act 1953 (which previously imposed tax on the value of estates passing on death) was repealed in 1982 under the Estate Duty (Repeal) Ordinance. Since then, no tax has been levied on inherited assets, regardless of the value of the estate or the relationship between the deceased and the beneficiary.

This means that beneficiaries receive assets free of any inheritance tax liability. The assets themselves may have been subject to income tax or capital gains tax during the deceased's lifetime, but no additional tax arises on the transfer at death.

No Gift Tax

Bangladesh does not have a specific gift tax. Gifts of cash, assets, or property are generally not subject to any gift tax. However, the following tax implications may arise:

• Property gifts (land/buildings): Transferring immovable property as a gift requires a deed of gift (দলিল). Stamp duty (1–2% of the property value) and registration fees (1–2%) apply. The donee bears these costs. The gift deed must be registered at the Sub-Registry Office.
• Income from gifted property: If a property is gifted, the income arising from it (e.g., rental income) is taxable to the donee (recipient) as ordinary income.
• Gifts of cash/other assets: No tax on the gift itself. However, if the gift generates income (e.g., interest from gifted deposits), that income is taxable to the donee.
• Gifts from relatives vs. non-relatives: No distinction for tax purposes — all gifts are free from gift tax regardless of relationship.

Succession Certificate and Court Fees

When a person dies leaving assets (bank deposits, shares, securities, etc.), the legal heirs must obtain a succession certificate (ওয়ারিশান সনদ) from the appropriate court to claim the assets. The costs involved include:

• Court fees: Approximately 2% to 5% of the value of the estate for which the certificate is sought. The rate is typically 3–4% on the first BDT 1 crore and 5% on amounts above BDT 1 crore, prescribed under the Court Fees Act 1870.
• Probate (for wills): If the deceased left a will, a grant of probate is required. Probate court fees are similar to succession certificate fees (2–5% of estate value).
• Legal fees: Lawyer's fees for obtaining succession certificates or probate vary but typically range from BDT 10,000 to BDT 1,00,000 depending on complexity and estate value.
• Mutation (পরিবর্তন): For land/property, mutation fees are payable to the local land registry office (উপজেলা ভূমি অফিস) to transfer ownership records. Fees are nominal (typically a few thousand taka).

Islamic Inheritance Rules (Faraiz / ফারায়েজ)

For Muslim estates, inheritance is governed by the Muslim Personal Law (Shariat) Application Act 1937 and the Faraiz (Islamic inheritance) rules. Key features:

• Fixed shares are prescribed in the Quran for specific heirs — spouse, children, parents, and siblings.
• A son typically receives twice the share of a daughter (2:1 ratio).
• A surviving spouse receives 1/8 of the estate if there are children, or 1/4 if there are no children (for a wife). A husband receives 1/4 with children or 1/2 without.
• Parents receive 1/6 each if the deceased has children.
• For non-Muslims (Hindus, Christians, Buddhists), inheritance is governed by personal laws — the Hindu Succession Act 1956 (for Hindus), the Indian Succession Act 1925 (for Christians and others), or customary laws.
• Wills (ওসিয়ত) can override the default Faraiz distribution only up to 1/3 of the estate; the remaining 2/3 must be distributed according to fixed shares. Bequests to legal heirs are not valid without the consent of other heirs.

Capital Gains on Inherited Assets

When a beneficiary inherits an asset and later sells it, the cost base for calculating capital gains is generally the value at the time of inheritance (stepped-up basis), not the original cost paid by the deceased. This means that only the appreciation from the date of inheritance to the date of sale is taxable. Capital gains are taxed as ordinary income at IIT rates (0–25%).

No Estate Tax

Bangladesh does not levy an estate tax (a tax on the value of the deceased's total estate before distribution). The absence of inheritance tax, gift tax, and estate tax makes Bangladesh one of the most favourable jurisdictions in Asia for wealth transfer and succession planning.

FAQs

Do I need to pay income tax on inherited assets?

No. Inheriting assets is not a taxable event. However, any income generated by inherited assets (rent, dividends, interest) is taxable as ordinary income to the beneficiary.

Can a non-Muslim make a will for all their property?

Yes. Non-Muslims (Hindus, Christians, Buddhists) have full testamentary freedom under their respective personal laws and can dispose of all property by will. Muslims are limited to bequeathing only 1/3 of their estate by will; the remaining 2/3 passes according to Faraiz rules.

How long does the succession process take in Bangladesh?

The succession certificate process typically takes 3 to 12 months, depending on the complexity of the estate, court backlog, and whether there are disputes. Probate for a will is usually faster (2–6 months) if the will is uncontested.

Disclaimer

This guide provides general information about inheritance and gift taxation in Bangladesh for 2026. Succession laws, court fees, and personal laws may vary based on religion, jurisdiction, and individual circumstances. Always consult with a qualified lawyer practising in succession and inheritance matters for advice specific to your situation. InvestmentKit does not provide legal or tax advice.