Real estate in Bhutan

The real estate market in Bhutan is unique due to the country's scenic beauty and commitment to preserving traditional culture.
The sector is subject to special rules and restrictions to ensure sustainable development and preserve national identity.
When building in Bhutan, attention is paid to the environment and to ensuring that citizens are happy. This is reflected in the architecture of the buildings and the design of the cities.
Foreigners must meet certain requirements when buying property. There are restrictions on the ownership of land and certain types of property.
This approach allows Bhutan to develop its real estate market without losing its cultural identity and preserving the unique look of the country.

Thimphu is the capital and largest city of Bhutan. Administration, business and trade are based here. There is a good infrastructure and a large selection of real estate.

Paro is a city in the west of the country that is known for its rich historical heritage. It is very popular with tourists. It is possible to buy an apartment near the sights.

Punakha - is located in a picturesque valley in the northwest of Bhutan. It offers a pleasant climate and unspoiled nature. A good choice for rural real estate.

Bumthang - a town in the north of the country, surrounded by mountains. Famous for its ancient culture and crafts. Suitable for buying property in traditional Bhutanese style.

Wangdi Phodrang is a small town in the south of Bhutan with a mild subtropical climate. You can buy a property with a view of the Himalayas.

As a rule, foreign nationals are not allowed to purchase real estate in Bhutan. There are a few exceptions to this rule for which special conditions apply.
The exceptions include cases where a foreigner is married to a Bhutanese citizen. In such cases, the foreign spouse may be allowed to own property under certain conditions.
Another exception applies to foreign companies that have obtained a license to operate in Bhutan. In this case, such companies may be entitled to acquire property in the country, but this may also be subject to certain rules and restrictions.
It is important to note that these exemptions are aimed at regulating and controlling property ownership by foreigners and companies in order to serve Bhutan's national interests and development strategy.

• Direct ownership of land is prohibited. Foreign nationals and companies cannot buy and own land directly in Bhutan.
• Long-term leases are possible. After obtaining a business license in Bhutan, foreigners can lease land for up to 50 years.
• Lease through Bhutanese companies. Land can be leased through a joint venture with a Bhutanese company that formally acts as the lessee.
• Right to inherit the lease. If land is leased for more than 10 years, the right to inherit the lease arises.
• Possible cases of land transfers. Foreigners can be gifted land by the Royal Family of Bhutan.

Thus, direct ownership of land in Bhutan is prohibited by law for foreigners, but there are legal options for long-term use of land.

• Through joint ventures with local companies. A foreign investor concludes an agreement with a Bhutanese company and invests capital in the construction or renovation of real estate. The shares in the joint venture are divided between the partners.
• Through joint ventures with private Bhutanese nationals. A Bhutanese is a co-founder of a real estate company and contributes a plot of land. A foreigner makes an investment in construction.
• By investing in infrastructure development. Foreign companies can participate in tenders and undertake large projects - construction of hotels, resorts, residential complexes.
• Through investment funds. Investments in PIFy Investments in Bhutanese real estate are possible.

So there are various ways to invest in the construction sector of Bhutan. However, there are restrictions on ownership of land and property for foreigners.

Mortgage in Bhutan for foreign citizens is possible, but with some restrictions - the loan can only be used for the purchase of apartments, not land plots or private houses, the maximum amount of the mortgage - 70% of the value of the property, the repayment period - maximum 15 years, interest rates - from 10% to 16% per annum depending on the bank, you must have a long-term visa to work in Bhutan, a down payment of at least 30% of the value of the property is required to obtain a mortgage you need to process all documents through a local bank in Bhutan.