Land in Gelephu Mindfulness City is not bought freehold. It is made available to investors through long-term lease arrangements coordinated by the GMC Economic Development Group (EDG), with the lease terms set site by site, and the tax, stamp duty and corporate consequences follow from a mix of GMC's own Acts and the applied statutes in Schedule A to the Application of Laws Act 2024. Basnet Law Pte. Ltd. is the first law firm incorporated in GMC. We advise on site identification, lease negotiation and the corporate, tax and registration steps that sit around a GMC site. This page explains how the land framework works and how we take an investor from requirements to a signed lease.
How we help
- Guide the investor through the EDG one-stop shop, which gmc.bt/invest-in-gmc describes as providing "land identification, lease guidance, company incorporation, regulatory clearances, coordination with government agencies, and investor aftercare".
- Negotiate and document the lease: term, renewal, permitted use, development obligations, assignment and security of tenure.
- Structure the leaseholder entity, including whether a foreign company registered under the Companies Act 2025, which the Act permits to hold immovable property, should hold the lease directly, or a GMC subsidiary.
- Advise on the tax treatment of lease costs and of vacancy costs under the Income Tax Act 2025.
- Plan for the 15% withholding on real property disposal proceeds paid to non-residents.
- Identify property tax and stamp duty exposure under the Property Tax Act 1960 and the Stamp Duties Act 1929, which apply in GMC through Schedule A to the Application of Laws Act 2024.
- Coordinate construction, energy and workforce contracting on the site, including work pass planning for foreign staff.
How GMC land and lease law works, in plain terms
The GMC Authority (GMCA), established under Royal Charter No. 1 of 2024, is the highest decision-making body of the region and has corporate legal personality. Its powers under the Charter include the grant of licences and fiscal benefits. Land arrangements are administered by GMCA through EDG, whose published offer is "flexible long-term leases designed to provide stability and value to investors". The lease terms themselves are set by GMCA and EDG for each site; the statutes do not fix them, and we confirm the current framework at engagement.
The Income Tax Act 2025 deals expressly with lease costs. It allows a deduction for expenditure incurred "for the purpose of obtaining a lease, or renewing or extending a lease, of an immovable property that is used by the person for the purpose of the person's trade or business". Qualifying expenditure means commission, legal fees, stamp duty, advertising expenses and other prescribed items. A landlord deriving rental income gets a matching deduction for the cost of granting a lease, and may deduct repair, insurance, maintenance and property tax during a vacancy where the Comptroller is satisfied that reasonable efforts were made to find a tenant.
On exit, any designated person paying consideration for a disposal of real property to a non-resident whose gain is chargeable to tax must "immediately deduct therefrom tax at the rate of 15% on every dollar of such payment", and must pay it to the Comptroller by the 15th day of the second month following. All "$" amounts are US dollars.
Two applied statutes govern property in GMC through Schedule A to the Application of Laws Act 2024, as amended from time to time and with modifications: the Property Tax Act 1960 and the Stamp Duties Act 1929. GMCA may amend Schedule A by order, so we check the current text before advising on rates or reliefs.
A foreign company registered under the Companies Act 2025 "has power to hold immovable property in GMC". Merely investing funds or holding property does not itself amount to carrying on business, but a foreign company that establishes a place of business must register before doing so.
Who this is for
- Manufacturers, agri-tech, energy and logistics investors in GMC's priority industries seeking a development site.
- Hospitality, wellness and education operators needing a long-term operating lease.
- Data centre and digital asset infrastructure projects with power and land requirements.
- Developers and landlords who will derive rental income from GMC property.
How an engagement runs
- Requirements brief: we define land area, use, utilities, timeline and the investor's corporate structure.
- EDG engagement: we prepare the investor's submission and coordinate land identification and lease guidance through EDG.
- Entity and registration: we incorporate the leaseholder or register the foreign company, and complete the GCRO filings.
- Lease negotiation: we negotiate the lease and any development or performance obligations, and settle execution as a deed under the Companies Act 2025 where one is required, through to signing.
- Tax and compliance: we document the lease-cost deduction position and the stamp duty and property tax treatment, and set up a compliance calendar for the site.
Frequently asked questions
Can a foreign investor own land in GMC?
GMC's published investor model is based on long-term leases administered through EDG rather than freehold sale. A registered foreign company has statutory power under the Companies Act 2025 to hold immovable property. We confirm the current tenure options with EDG at engagement.
Are legal fees on the lease tax deductible?
Yes, where the property is used for the trade or business. The Income Tax Act 2025 expressly includes commission, legal fees, stamp duty and advertising expenses within deductible lease-acquisition expenditure, and we document the claim.
Is stamp duty payable on a GMC lease?
The Stamp Duties Act 1929 applies in GMC through Schedule A to the Application of Laws Act 2024, with modifications. Rates and reliefs are as set in that Act as applied; we confirm the position for the specific instrument.
What happens on sale of a GMC property by a non-resident?
The payer must withhold 15% of the consideration and remit it to the Comptroller. The non-resident's actual liability is then settled through assessment, and we handle both sides of that.
Who do we deal with for land?
The Economic Development Group, GMC's one-stop shop for investors, reachable at invest@gmc.bt. We prepare and manage that engagement alongside incorporation and regulatory clearances.
Talk to GMC counsel on the ground
Basnet Law Pte. Ltd. is the first law firm incorporated in the Gelephu Mindfulness City. A short conversation early in a matter usually saves time and cost later. Write to basnet@basnetgmc.com or office@basnetgmc.com with a few lines about your plans, and we will tell you plainly what is needed, how long it takes, and whether we are the right fit.
You may contact Basnet Law at basnet@basnetgmc.com or office@basnetgmc.com for any legal queries related to GMC.
