What are the income tax rates in Pakistan?

In Pakistan, the personal income tax ranges from 5% – 35%. Corporations pay a 29% corporate tax rate. Capital gains are taxed at 15%. VAT is 17%.

Is Pakistan crypto-friendly?

Pakistan has standard tax treatment for cryptocurrencies (crypto score 2/5). Gains are generally taxed as capital gains or ordinary income.

What is the cost of living in Pakistan?

The cost of living in Pakistan is very low (index 25) (reference: 100 = New York City). Safety index is 4/10. Average internet speed is 18 Mbps. Compared to Western Europe or the US, Pakistan offers excellent value for expats.

Is Pakistan a good destination for digital nomads?

Pakistan does not have a specific digital nomad visa, though foreigners can explore residency options or tourist stays. Average internet speed is 18 Mbps — suitable for remote work.

What is healthcare like in Pakistan?

Healthcare quality in Pakistan is limited (score 3.8/10). International private health insurance is recommended.

Is Pakistan a good place for remote work?

Pakistan presents some challenges for remote work. Advantages include: low cost of living. Internet speed (18 Mbps) may be a limiting factor.

Pakistan — Tax Guide, Residency & Cost of Living for Expats

Asia · South AsiaUpdated 2026

Tax Score

38/100Worldwide

Tax Data

Income Tax5% – 35%

Corporate Tax29%

Capital Gains15%

VAT/GST17%

Wealth TaxNo

Inheritance TaxNo

Residency & Visas

Golden VisaNo

Digital Nomad VisaNo

Cost of Living & Quality of Life

Cost of Living Index25

Safety4/10

Internet18 Mbps

Healthcare3.8/10

Gasoline$1.18/L

Tax Overview

Pakistan applies a worldwide tax system with high progressive rates. Residents are taxed on their global income, which can represent a significant burden for high earners.

Personal Income Tax

Personal income tax in Pakistan ranges from 5% – 35% progressively.

Corporate & Capital Gains

The corporate tax rate is 29%. Capital gains are taxed at 15%.

Indirect Taxes & Wealth

VAT/GST is 17%, moderate by international standards. There is no wealth tax. There is no inheritance tax.

Crypto & Digital Assets

Pakistan has an unfavorable crypto tax regime (score 2/5). Rates are high and/or regulations are restrictive.

Compare with other countries

Residency Guide

Relocating to Pakistan is possible but with limited options. Visa options are more limited, but residency is achievable through standard pathways.

Visa Options

Pakistan does not currently offer a digital nomad visa or golden visa. Foreigners can explore work, investment, or family reunification visas.

Practical Considerations

As a non-LATAM destination, applicants should consider potential language barriers and cultural differences. Working with a local immigration attorney and verifying apostille/legalization requirements for documents is recommended.

Also consider: United Arab Emirates, Qatar, Kuwait

Lifestyle

Pakistan offers a low cost of living, enabling a comfortable lifestyle on a moderate budget.

Cost of Living

With an index of 25 (reference: 100 = New York City), Pakistan is significantly cheaper than major world cities. An expat can live comfortably at a fraction of what it would cost in the US or Western Europe.

Safety & Infrastructure

With a safety score of 4/10, caution is recommended, especially outside tourist and expat areas. Internet speed of 18 Mbps — may be limiting for video calls and intensive remote work.

Healthcare

A healthcare score of 3.8/10 indicates significant healthcare system challenges. Comprehensive private insurance is essential.

Quality of Life

Pakistan has a Human Development Index of 0.54 (classification: low). It is important to consider differences in service quality depending on location.

Data: 2026 · Source: tax_foundation,pwc,manual

Pros & Cons

Pros

No wealth tax
No inheritance tax
Very low cost of living (index 25)

Cons

Worldwide tax system — global income taxed
Moderate safety — caution advised (4/10)
Unfavorable crypto regime (2/5)
Limited healthcare system (3.8/10)
Slow internet (18 Mbps)
Physical presence requirement (183+ days/year)

Frequently Asked Questions

Pakistan operates under a worldwide tax system: taxes residents on worldwide income, regardless of where it is earned. The top personal income tax rate is 35%.