Bhutan Capital Gains Tax Guide: 0% CGT on All Assets 2026
Bhutan does not impose a separate capital gains tax (CGT). Gains from the sale of real estate, shares, securities, and other assets are not subject to CGT. This makes Bhutan one of the most attractive jurisdictions in Asia for investors seeking tax-efficient capital appreciation. Here is how capital gains treatment works in 2026.
Capital gains taxation in Bhutan is notably absent from the tax code. There is no separate CGT regime, no holding period rules, and no distinction between short-term and long-term gains. For individuals, all capital gains are tax-free. For companies, capital gains on the sale of assets are treated as ordinary business income and taxed at the standard CIT rate of 30%. This favorable treatment aligns with Bhutan's GNH philosophy of encouraging long-term investment and wealth creation. Property registration fees →
Real-world example: An individual buys land in Paro for BTN 2,000,000 and sells it 1 year later for BTN 3,500,000. Gain: BTN 1,500,000. CGT = BTN 0. A foreign investor buys shares in a Bhutanese company for BTN 5,000,000 and sells for BTN 8,000,000. CGT = BTN 0. Compare this to India where long-term capital gains on shares above INR 100,000 are taxed at 10%, real estate gains at 20% with indexation. A company selling a factory building for a gain: the gain is added to business income and taxed at 30% CIT. Corporate tax rates →
Capital Gains Treatment
- Individuals — all assets: 0% — no capital gains tax on real estate, shares, securities, or other personal assets
- Companies — business assets: Gains on disposal of business assets are treated as ordinary income and taxed at CIT rate of 30%
- No holding period: Unlike many countries, Bhutan does not distinguish between short-term and long-term gains
- No distinction: Resident and non-resident individuals both enjoy 0% CGT on asset disposals
For individuals, the complete absence of CGT applies regardless of the type of asset, holding period, or residency status. This is unique even among Asian jurisdictions, most of which impose some form of CGT on at least real estate transactions.
Real Estate Transactions
While there is no CGT on real estate, property transactions in Bhutan involve other costs:
- Registration fee: Approximately 1-2% of the property value, paid at the time of transfer
- Annual land tax: Minimal annual tax based on land classification (wetland, dryland, forest, etc.) — not a property value tax
- Green tax: Environmental levy on property development in certain areas
- Foreign ownership restriction: Foreigners and non-residents cannot own land in Bhutan. Land ownership is restricted to Bhutanese citizens
The 0% CGT on real estate is particularly beneficial for Bhutanese citizens. Foreign investors should note the land ownership restriction and consider leasehold arrangements instead. Property tax guide →
Shares and Securities
- Individuals: 0% CGT on gains from sale of shares, bonds, and securities — both listed and unlisted
- Dividends: Subject to 10% WHT for non-residents (0% for residents)
- Royal Bhutan Stock Exchange: Limited stock exchange with listed companies, primarily in hydropower, banking, and manufacturing
The 0% CGT regime makes Bhutan an attractive holding jurisdiction for securities investments, though the limited capital market and foreign investment restrictions reduce practical access for international investors.
Do companies pay tax on capital gains?
Yes, but as ordinary income. Companies include capital gains on asset disposals in their taxable income, subject to the standard 30% CIT rate. There is no separate CGT calculation or reduced rate for long-term gains.
Is there an exit tax for leaving Bhutan?
No. Bhutan does not impose an exit tax on individuals who cease to be tax residents or on companies that relocate. Individuals are free to dispose of assets without CGT upon departure.