Nepal (NP)
Nepal is a landlocked Himalayan nation between India and China, home to eight of the world's ten highest peaks including Mount Everest (8,849m).
Estate & Inheritance in Nepal
Wills, intestacy, inheritance tax, and cross-border estate planning for expats.
Inheritance in Nepal is governed primarily by the Muluki Civil Code 2017 (enacted 2018), which replaced the older Muluki Ain and modernised succession law. The Civil Code applies to all property physically situated in Nepal regardless of the deceased's nationality. Key expat risk areas: (1) Foreign nationals cannot own land in Nepal — only leasehold arrangements and building ownership on leased land are available; succession of these interests requires specialist legal navigation. (2) Nepal has no inheritance tax, but transfer of property title (registration) attracts stamp duty and the Office of the Land Registration (Mal Adda) has its own procedural requirements. (3) A foreign will or foreign probate grant must be apostilled, translated, and recognised through a Nepali court process to be effective for Nepal-situated assets. (4) Bank account nominations (surviving nominee designation) should be lodged directly with each bank as they operate outside probate.
Intestacy — What Happens Without a Will
If a person dies without a valid will, succession to Nepal-situated assets follows the Muluki Civil Code 2017. The priority order is: (1) Surviving spouse (entitled to remain in the family home and receive an equal share with children); children (biological and legally adopted, in equal shares); (2) Grandchildren per stirpes (representing a pre-deceased parent); (3) Parents of the deceased; (4) Siblings and their descendants; (5) Other relatives in diminishing degree. The Civil Code introduced significant gender-equal inheritance rights — daughters and sons receive equal shares, a major change from the historic system. A surviving spouse is entitled to maintenance and a property share regardless of the will. Unmarried partners (cohabiting couples without legal marriage or registered partnership) have no automatic intestate rights. Stepchildren have no automatic inheritance right unless legally adopted. Ancestral joint family property (guthi / bansa) has additional customary rules that interact with the Civil Code — specialist legal advice is essential.
Types of Valid Will
Nepali Will
बसिलात / BasiyatA will under the Muluki Civil Code 2017. Must be in writing, dated, and signed by the testator. At least two witnesses (who are not beneficiaries and are not the testator's heirs) must also sign, confirming the testator's identity and mental capacity. Registration with the District Court or the relevant local government authority strengthens the will's evidential standing.
Valid until revoked by a new will or by formal written revocation. Should be reviewed after marriage, divorce, birth of children or major asset changes.
Coordinate with a home-country will to avoid conflict. Clearly identify which country's assets each will covers. Registration at the local government office (Palika) or District Court provides a dated official record and helps executors prove authenticity.
Home-Country Will with Nepal Provisions
बिदेशी बसिलात / Bideshi BasiyatA will made under foreign law may be recognised for Nepal-situated assets, but it must be apostilled (Nepal became a Hague Apostille party in 2006), accompanied by a certified Nepali translation, and recognised through a Nepali court process. This typically takes 6–18 months in practice.
Depends on execution formalities under the originating law and Nepali court recognition. Cannot override protected rights of a surviving spouse or children under the Civil Code.
Foreign nationals with only a foreign will and Nepal-situated assets (leaseholds, bank accounts) should engage a Nepali lawyer from the date of death to initiate recognition proceedings.
Forced Heirship
The Muluki Civil Code 2017 provides protected rights for a surviving spouse and children that limit complete disinheritance. A surviving spouse is entitled to maintenance and a property share by operation of law regardless of the will's terms. Children (including daughters, who now have equal rights) cannot be entirely cut out where the estate includes family property. The Code also provides that a testator cannot disinherit a minor child's share from ancestral property. These provisions function as a form of forced heirship but are structured differently from the German Pflichtteil or French réserve — the approach is property-type specific rather than a simple fraction of the whole estate. Specialist Nepali legal advice is essential before attempting to exclude any close heir.
EU Succession Regulation (Brussels IV)
The EU Succession Regulation (EU 650/2012) does not apply to Nepal. If an expat living in Nepal holds assets in EU member states, those EU-situated assets will be governed by the Regulation — the applicable law may be the EU country of habitual residence or (by professional election) the law of the EU nationality country. Nepali courts will not apply EU Regulation rules. Cross-border estates require separate legal advice in each jurisdiction.
Inheritance Tax
Nepal does not have a dedicated inheritance tax or estate duty. Assets pass to heirs without a central inheritance tax charge. However, the transfer of immovable property (registration of title change at the Land Revenue Office/Mal Adda) attracts stamp duty at rates set by the government — rates vary by property type and relationship between parties, with closer relatives typically paying lower rates. Capital gains tax may apply if an heir subsequently sells inherited property.
| Relationship | Tax-Free Allowance | Tax Rate (above allowance) |
|---|---|---|
| Spouse / children / parents (direct family) | No inheritance tax; title transfer (stamp duty) applies at preferential family rate | 0% inheritance tax; stamp duty on property transfer (rate varies — confirm with Land Revenue Office) |
| Non-family heirs / foreign beneficiaries | No inheritance tax; higher stamp duty rate may apply on property transfer | 0% inheritance tax; higher stamp duty on property transfer; bank KYC for fund remittance |
Stamp duty rates on property title transfer at the Land Revenue Office are periodically revised — confirm current rates with the Office of the Inland Revenue Department or a Nepali tax adviser. Foreign heirs remitting inherited funds abroad require evidence of the inheritance, a bank succession certificate, and compliance with Nepal Rastra Bank foreign exchange rules. Income subsequently generated from inherited rental property is taxable as ordinary income.
Cross-Border & Multi-Country Estates
Key cross-border issues for Nepal estates: (1) Land restriction: foreign nationals cannot own land in Nepal — they can hold leasehold interests and building ownership, but succession of these interests requires specific legal steps at the Land Revenue Office and approval from the relevant authority. (2) Bank accounts: a court-issued succession certificate (from the District Court or High Court) is required before banks will release funds to heirs — a foreign probate grant alone is insufficient. (3) Foreign will recognition: apostille + certified translation + court recognition process applies (6–18 months typically). (4) No dedicated Nepal IHT treaty exists (there is no IHT to treaty over), but income from inherited Nepali business assets is taxable and may be reportable in the heir's home country. Engage a Nepali lawyer (advokat) registered with the Nepal Bar Association and home-country counsel simultaneously.
Certificate of Inheritance
A succession certificate (उत्तराधिकार प्रमाणपत्र) is issued by the District Court (Zilla Adalat) for dealing with estate assets including bank accounts and securities. For immovable property, a separate process at the Land Revenue Office (Mal Adda) is required to register the title change. Required documents typically include: death certificate, the will (if any), identity documents of heirs, proof of kinship (birth and marriage certificates), and the estate inventory. Court fees are assessed on the estate value. Processing typically takes 3–12 months in straightforward cases. A foreign heir must also present apostilled documents with certified Nepali translations.
Will Registration
Nepal does not have a central national will registry accessible to the public. Wills can be voluntarily registered with the District Court or local government office (Palika) for a nominal fee — this provides a dated official record and reduces the risk of a contested or unfound will. Store the original will securely, leave a copy with a Nepali lawyer, and inform your executor and key family members of its location and the nature of your Nepal assets.
Living Will & Healthcare Power of Attorney
Nepal does not have a formal advance healthcare directive (living will) statute. Medical decision-making for an incapacitated adult defaults to the next-of-kin and the treating medical team. Expats who wish to formalise healthcare preferences or appoint a medical decision-maker should prepare a general power of attorney with health-specific provisions, executed before a notary and registered at the local government office. Discuss medical wishes explicitly with family members and the private hospital of choice, and ensure private insurance documents are accessible to the nominated person.
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Estate & Inheritance
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