Land in the Gelephu Mindfulness City is not bought off a listing. Land in GMC is made available on lease, with terms negotiated, and the contracts you build with sit under two new commercial statutes and a tax regime with its own withholding rule for property. Basnet Law Pte. Ltd. advises investors, developers and contractors on sites under GMC lease arrangements, on construction contracting under GMC law, and on the tax and withholding rules that attach to property in the Gelephu Mindfulness City. This page sets out how that framework works and how we take a project through it.
Our legal advisory
- Advising investors on land and the lease arrangements available in GMC.
- Advising foreign companies on their statutory power to hold immovable property in GMC once registered under the Companies Act 2025.
- Drafting construction, design and supply contracts under GMC law, including materials supply under the Sale of Goods Act 2026.
- Advising on liability allocation under the Unfair Contract Terms Act 2026, including the bar on excluding liability for death or personal injury caused by negligence.
- Advising principals on their joint and several liability for the wages of contractors' and subcontractors' workmen under the Employment Act 2025.
- Tax on property: rents and premiums as chargeable income under the Income Tax Act 2025, and the 15% withholding on real property disposals by non-residents.
- Property tax and stamp duty questions under the Property Tax Act 1960 and the Stamp Duties Act 1929 as applied through the Application of Laws Act 2024.
How GMC real estate and construction law works, in plain terms
Land in GMC is made available on lease. The lease is therefore the core real estate instrument for an incoming investor. Its terms are commercial, and we negotiate them as such.
A foreign company registered under the Companies Act 2025 "has power to hold immovable property in GMC", subject to and in accordance with any written law. A GMC-incorporated company holds property through its general capacity. To register, a foreign company must lodge its constitutional documents and details before it establishes a place of business, and it must then maintain a registered office in GMC.
Contract law for construction draws on the received common law and equity, as applied by the Application of Laws Act 2024, together with GMC's own commercial statutes. For contracts made on or after 15 June 2026, the Unfair Contract Terms Act 2026 prevents any exclusion of negligence liability for death or personal injury and subjects other exclusions to a reasonableness test; contracts relating to interests in land are, however, exempted by its First Schedule. Under the Sale of Goods Act 2026, goods sold in the course of business carry an implied condition of satisfactory quality, property passes when the parties intend it to, and risk follows property unless otherwise agreed.
On tax, income from rents, premiums and other profits from property accruing in or derived from GMC is chargeable under the Income Tax Act 2025. Where a non-resident disposes of real property, the paying party must deduct tax at 15% on every dollar of the consideration and pay it to the Comptroller by the 15th day of the second month following the deduction. The Property Tax Act 1960 and the Stamp Duties Act 1929 apply with modifications under Schedule A to the Application of Laws Act 2024.
Who this is for
- Investors in GMC's priority industries seeking a site on lease.
- Developers and contractors building in Gelephu.
- Foreign companies acquiring property rights through a GMC branch or subsidiary.
- Non-resident owners disposing of GMC real property.
How a legal advisory engagement runs
- Site strategy. We advise on land identification and the lease terms available for your project.
- Entity and title. We choose the holding entity and confirm its power to hold property before you commit.
- Lease negotiation. Term, renewal, use, assignment and security of tenure, negotiated until the lease is signed.
- Construction contracts. Design, build and supply agreements drafted to the 2026 Acts.
- Tax and completion. Advice on withholding on any non-resident disposal, stamp duty and property tax compliance through to completion.
Frequently asked questions
Can a foreign company own land in GMC?
A foreign company registered under the Companies Act 2025 has power to hold immovable property in GMC, subject to any written law. Land is made available on lease, and we advise on the legal requirements for both the registration and the lease.
What tax applies when I sell GMC property as a non-resident?
The payer must deduct 15% of every dollar of the consideration under the Income Tax Act 2025 and remit it to the Comptroller. The final liability is then settled through assessment, on which we advise.
Can my construction contract cap the contractor's liability?
For contracts from 15 June 2026, a cap must satisfy the reasonableness test in the Unfair Contract Terms Act 2026, and liability for death or personal injury caused by negligence cannot be excluded at all. Contracts for interests in land are exempt under the First Schedule. We draft caps with that test in mind.
Am I liable for my contractor's unpaid workers?
Yes. Under the Employment Act 2025 a principal who contracts for labour or work is jointly and severally liable with the contractor and any subcontractor for the workmen's salary. We build protections against that exposure into the contract.
Are lease fees or land prices fixed by law?
No. Terms are agreed through EDG, and we confirm current arrangements before advising.
Contact
Basnet Law Pte. Ltd. is the first law firm incorporated in the Gelephu Mindfulness City.
You may contact Basnet Law at basnet@basnetgmc.com or office@basnetgmc.com for any legal queries related to GMC.
