Real estate and construction in the Gelephu Mindfulness City follow a different pattern from most jurisdictions: land is not bought off a listing. Sites are made available to investors through the Economic Development Group, the one-stop shop that offers land identification, lease guidance, incorporation and regulatory clearances, on long-term leases whose terms are negotiated site by site. A GMC company holds its lease through its general capacity, and a foreign company registered under the Companies Act 2025 has statutory power to hold immovable property in GMC. Construction contracts draw on the common law and equity as received through the Application of Laws Act 2024 and, for contracts made from 15 June 2026, on the Unfair Contract Terms Act 2026, which prevents any exclusion of negligence liability for death or personal injury and subjects other exclusions to a reasonableness test, and on the Sale of Goods Act 2026 for materials supply. Two provisions catch developers out: under the Employment Act 2025 a principal is jointly and severally liable with contractors and subcontractors for the workmen's wages, and under the Employment of Foreign Workforce Act 2025 the occupier of a work place is presumed to have permitted entry to any foreigner found there without a valid work pass. On tax, rents and premiums are chargeable under the Income Tax Act 2025, a payer must deduct 15% from consideration for real property paid to a non-resident, and property tax and stamp duty apply through the applied statutes listed in the Application of Laws Act 2024. Lease fees and land prices are not fixed by law.
Basnet Law Pte. Ltd. advises investors, developers and contractors on site strategy and lease negotiation with EDG, the holding entity and its power to hold property, design, build and supply contracts drafted to the 2026 Acts, principal and occupier exposure on site, withholding, stamp duty and property tax, project and concession structuring, and construction disputes.
