This page sets out what can be said with confidence about living and working in the Gelephu Mindfulness City Special Administrative Region (GMC), drawn from the material published by the Gelephu Mindfulness City Authority and the text of the GMC Acts. It confines itself to matters of law; housing, schooling, cost of living and amenities are outside its scope.
What this guide covers
The place
GMC is a Special Administrative Region in southern Bhutan, established under Royal Charter No. 1 of 2024 granted on 10 February 2024. The GMC Authority describes an area of about 4,046 square kilometres and a "one country, two systems" framework in which GMC holds executive, legislative and judicial powers. The Charter describes GMC as "a fully independent and autonomous region in the Kingdom of Bhutan" (Art. 1), places security under the Armed Forces of Bhutan (Art. 6) and gives the GMC Authority power to make laws with Royal Assent (Art. 4).
The GMC Authority lists eight core industries and sectors: Spiritual; Health and Wellness; Education and Knowledge; Agri-Tech and Forestry; Green Energy and Technologies; Finance and Digital Assets; Aviation and Logistics; Tourism. The Authority states that development will proceed in phases, beginning with core infrastructure and essential services.
The right to work
A foreigner works in GMC under a work pass issued by the Controller of Work Passes. An employer must not employ a foreign employee without a valid work pass, and a foreign employee must not be in employment without one (Employment of Foreign Workforce Act 2025, s. 5(1)–(2)). A foreigner running their own business must also hold a pass (s. 10(1)). The pass is tied to the employer, the employee and the occupation stated in it (s. 12(1)). Pass categories, fees and levy rates are set by the designated officer and the Controller rather than in the Act (ss. 7, 11, 29).
The pass has a corporate consequence. A director who holds a valid work visa or work pass is "ordinarily resident in GMC" for the requirement that every company have at least one such director (Companies Act 2025, s. 145(1) and (1A)).
Personal tax
An individual who is not a citizen of Bhutan, "whether resident in GMC or not", pays income tax at 0% on chargeable income derived on or before 31 December 2030 (Income Tax Act 2025, s. 43(1)(ba)). Bhutanese citizens resident in GMC pay under the banded table in s. 42 and the Second Schedule, starting at nil on the first $10,000. Employers have a deduction-at-source obligation where tax is payable (s. 44B), and a leaver's final pay requires tax clearance (Employment Act 2025, s. 24).
The currency
Every "$" in GMC legislation is a United States dollar. The Companies Act (s. 4A), the Employment Act (s. 2AA), the Employment of Foreign Workforce Act (s. 2AA) and the Income Tax Act (s. 2AA) each say so. Salary, share capital and tax computations (Income Tax Act, s. 62A) are therefore expressed in USD.
Working conditions
The Employment Act 2025 sets a floor that contracts cannot go beneath (s. 8): a weekly rest day (s. 36), no more than 8 hours a day or 44 hours a week (s. 38(1)), salary paid within 7 days of the period end (s. 21(1)), equal notice periods for both sides (s. 10(2)) and limits on deductions (ss. 26–32).
The series articles
- Residency in GMC: Every Route to Living Legally in the Gelephu Mindfulness Citythe pillar page on passes and residence.
- GMC Work Passes: The Complete Employer's Guidess. 5 to 15 of the Foreign Workforce Act.
- The GMC Tax Regime in Full: 15% on Companies, 0% on Individuals Until 2030the personal tax position in detail.
- The Dollar Jurisdictionwhy USD is the currency of account.
- Hiring in GMC: The Employment Act 2025 From Offer Letter to Terminationthe employee's statutory protections.
- Is GMC a Separate Jurisdiction?what the Charter means for a resident.
Frequently asked questions
Do I need to be a Bhutanese citizen to live and work in GMC?
No. The Foreign Workforce Act exists precisely to admit foreign employees and self-employed foreigners on work passes (ss. 5, 10). The 0% personal rate in s. 43(1)(ba) of the Income Tax Act is aimed at non-citizens.
Will I pay income tax in GMC as a foreign employee?
Not on chargeable income derived on or before 31 December 2030 (Income Tax Act 2025, s. 43(1)(ba)). Your home country's rules are a separate question that we do not address here.
Is my salary paid in US dollars?
GMC law reads every dollar reference as United States dollars (Employment Act 2025, s. 2AA). Contracts in GMC are ordinarily denominated in USD accordingly.
Can my spouse or family accompany me?
The Foreign Workforce Act and the applied Immigration Act 1959 govern entry and stay; dependant arrangements follow the categories prescribed by the designated officer. We confirm the current position on request.
What if I want to start my own business rather than take a job?
You need a work pass as a self-employed foreigner (s. 10(1)) and, if you incorporate, your pass satisfies the resident director rule (Companies Act 2025, s. 145(1A)). Business names must be registered before trading (Business Names Registration Act 2026, s. 5).
You may contact Basnet Law at basnet@basnetgmc.com or office@basnetgmc.com for any legal queries related to GMC.
References
- Royal Charter No. 1 of 2024, Arts. 1, 4, 6
- Employment of Foreign Workforce Act 2025, ss. 2AA, 5, 7, 10, 11, 12, 29
- Companies Act 2025, ss. 4A, 145
- Income Tax Act 2025, ss. 2AA, 42, 43(1)(ba), 44B, 62A, Second Schedule
- Employment Act 2025, ss. 2AA, 8, 10, 21, 24, 26–32, 36, 38
- Business Names Registration Act 2026, s. 5
