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).

Capital: Kathmandu

Region: Asia

Language: Nepali

Currency: NPR (Rs)

Cost of living: Very affordable (index 18)

Emergency: 100

Buying Property in Nepal

The full buying process, transaction costs, mortgage, and legal requirements.

Foreign nationals are constitutionally and statutorily prohibited from owning land or immovable property in Nepal in their personal capacity. The Constitution of Nepal and the Land Act together bar direct freehold purchase by foreigners. The homeownership rate among resident Nepalis is approximately 80%, but that right does not extend to foreign citizens. Three narrow routes exist for non-Nepalis: (1) Non-Resident Nepalis (NRNs) — Nepali-origin dual citizens holding a valid NRN Card — may purchase land and property, subject to approval from the Ministry of Land Management and a cap of one residential plot/house per NRN; (2) foreign nationals incorporated under the Foreign Investment and Technology Transfer Act (FITTA) may acquire property exclusively for approved business operations with prior approval from the Department of Industry; (3) any person (including foreigners) may lease property for up to 30 years. No property of any kind may be acquired within 10 km of an international border. Practical apartment purchases in registered high-rise buildings are the most common avenue used by diaspora buyers. Always engage a licensed Nepali lawyer before committing any funds.

Rent vs. Buy

For the vast majority of foreign expats, renting is the only practical option — direct ownership is prohibited. NRN diaspora buyers do purchase property, particularly in Kathmandu Valley (Kathmandu, Lalitpur, Bhaktapur), Pokhara, and emerging areas such as Chitwan and Lumbini. Apartment demand in Kathmandu has grown steadily. Rental yields in Kathmandu run 3–5% annually, and property values have appreciated at roughly 8–12% per year in prime urban areas over the past decade. Foreign companies registered under FITTA may buy commercial property but cannot convert it to residential or speculative use. Leasehold arrangements (up to 30 years) are the most accessible option for foreign individuals who do not hold NRN status.

Buying Process — Step by Step

Establish eligibility

1–2 weeks

Confirm whether you qualify as an NRN (hold a valid NRN Card issued by the Non-Resident Nepali Association), a FITTA-registered company, or a leaseholder. Foreigners without NRN status cannot proceed to purchase land or buildings in their personal name. Consult a licensed Nepali lawyer at this stage.

Identify property and conduct title due diligence

2–4 weeks

Check the Lalpurja (land ownership certificate) at the local Land Revenue Office (Malpot Karyalaya / dolma.gov.np). Verify the plot number, Khaitan number, ownership chain, and absence of liens, disputes, mortgages, or government acquisition orders. Commission a licensed surveyor to confirm boundaries against the cadastral map from the Department of Survey (dos.gov.np).

Negotiate and sign a preliminary sale agreement (Rajinama)

1–2 weeks

A notarised preliminary agreement sets out the agreed price, payment schedule, and conditions. A token payment (Saipur) of 10–25% of the price is typically paid at this stage. Ensure the agreement specifies what happens if government approval is denied.

Apply to the Ministry of Land Management (NRN route) or Department of Industry (FITTA route)

4–8 weeks

NRN buyers must submit the application form, NRN Card copy, passport, property documents, and deed value declaration to the Ministry of Land Management, Cooperatives and Poverty Alleviation (molcpa.gov.np). FITTA-registered companies apply to the Department of Industry. Approval can take several weeks; ensure all documents are certified and translated where required.

Pay stamp duty and registration fees

1–2 days

Registration fees are: 5% of deed value in Metropolitan cities (Kathmandu, Pokhara etc.), 4.5% in Sub-Metropolitan cities, 4% in Municipalities, and 2% in Rural Municipalities. Women buyers receive a 25–30% concession. Properties in Kathmandu Valley attract an additional 5% Bagmati Civilisation Fund surcharge on the registration fee. Stamp duty of approximately 1% is also payable. Payments are made at the Land Revenue Office.

Register the deed at the Land Revenue Office

1–3 days

Both parties attend the Land Revenue Office (Malpot Karyalaya). The deed is executed in person or via notarised power of attorney. The Lalpurja (ownership certificate) is reissued in the buyer's name. The official register is maintained by the Department of Land Management and Archive (DOLMA) — public portal at public.dolma.gov.np.

Post-registration: tax registration and bank repatriation records

1–2 weeks

NRN and foreign buyers must maintain bank records of the inward remittance used to fund the purchase (required for future repatriation of sale proceeds). Register with the local Ward Office for property tax purposes. Retain all original documents — Lalpurja, registration receipts, government approval letter.

Transaction Costs

Cost Item	Amount	Notes
Registration fee (stamp duty) — Metropolitan city	5% of declared deed value	Kathmandu, Lalitpur, Bhaktapur, Pokhara etc. Women buyers receive 25% concession.
Registration fee — Sub-Metropolitan / Municipality / Rural Municipality	4.5% / 4% / 2% of deed value	Rate depends on administrative classification of the property location.
Bagmati Civilisation Fund surcharge	5% surcharge on the registration fee	Applies only to properties within Kathmandu Valley (Kathmandu, Lalitpur, Bhaktapur districts).
Stamp duty	~1% of deed value	Payable at the Land Revenue Office at the time of registration.
Capital gains tax (seller)	5% (held >5 years) or 10% (held ≤5 years)	Paid by the seller; buyers should confirm this has been settled before transfer.
Legal fees	NPR 50,000–500,000	Varies by property value and complexity. Essential — do not transact without a licensed lawyer.
Real estate agent commission	1–3% of purchase price	Usually split between buyer and seller, though negotiable.
Surveyor / technical inspection	NPR 10,000–50,000	Verify boundaries and structural condition, particularly for older buildings.
Estimated total buyer transaction cost	6–10% of purchase price	Includes registration fee, surcharge, stamp duty, legal and agent fees. Excludes renovation.

The Notary — Mandatory for All Purchases

Nepal does not use a European-style civil-law notary for routine property conveyancing. A licensed advocate (lawyer) drafts the sale deed and verifies parties' identities. The deed is then registered directly at the Land Revenue Office (Malpot Karyalaya), which provides the binding legal record. Notarised powers of attorney are required if either party cannot attend in person and must be authenticated by the Nepali Embassy if executed abroad.

Mortgage

Foreign nationals are generally unable to access mortgage lending from Nepali commercial banks. NRN buyers may obtain housing loans, including against NRN fixed-deposit accounts, from Nepal Rastra Bank (NRB)-regulated institutions. NRB has set the maximum home loan ceiling at NPR 30 million (approximately USD 225,000) with up to 80% loan-to-value (LTV) for a first property and 70% LTV for second or subsequent properties. Fixed rates range from approximately 6% to 10.5% per annum as of 2026, depending on the lender and tenor.

Typical Deposit Required

20% minimum for a first property (NRN); 30% for second/subsequent properties. Foreign-incorporated companies purchasing business property typically require 40–50% equity.

For Foreign Buyers

Pure foreign nationals (no NRN status) cannot obtain mortgages from Nepali banks for personal property. Foreign loans into Nepal require approval from Nepal Rastra Bank under the Foreign Exchange Regulation Act. NRN borrowers must demonstrate inward remittance as the source of the down payment and maintain records for repatriation purposes. FITTA-registered companies may access commercial lending with standard collateral requirements.

Recommended Lenders & Brokers

Nabil Bank (nabilbank.com) — NRN home loan productRastriya Banijya Bank (rbb.com.np) — Housing loanNepal Bank Limited (nepalbank.com.np) — Home loanGlobal IME Bank (globalimebank.com) — Home loan, NRN productsNMB Bank (nimb.com.np) — Ghar Karja (home loan)Nepal Rastra Bank (nrb.org.np) — Regulatory authority, rate guidelines

Land Registry

The Department of Land Management and Archive (DOLMA) under the Ministry of Land Management, Cooperatives and Poverty Alleviation administers land registration through district Land Revenue Offices (Malpot Karyalaya). The public online portal is public.dolma.gov.np and the Ministry portal is molcpa.gov.np. Property searches can be conducted online or in person using the plot number (Kitta) and Khaitan number. Cadastral (boundary) maps are maintained by the Department of Survey at dos.gov.np. Registration cost is included in the stamp duty/registration fee (see costs above).

Taxes

Registration fee/stamp duty: 2–5% of deed value depending on municipality type (see costs). Bagmati Civilisation Fund surcharge: 5% on the registration fee for Kathmandu Valley properties. Capital gains tax: 5% for properties held more than 5 years; 10% for 5 years or fewer — paid by the seller. Annual House and Land Tax (Ghar Jagga Kar): levied by local municipalities, based on the estimated annual rental value (typically 0.5–2% of assessed value per year). NRN and foreign buyers must retain inward remittance records to repatriate future sale proceeds without penalty under Nepal Rastra Bank foreign exchange rules.

New Build vs. Existing Property

Apartment purchases in registered high-rise buildings (particularly in Kathmandu and Pokhara) are the most practical route for NRN buyers and are increasingly popular due to clearer title documentation and developer-managed legal support. Many developers cater specifically to diaspora buyers, offering overseas payment options. For land and independent houses, older properties in Kathmandu Valley may be subject to heritage or earthquake-safety restrictions. New build purchases typically require a construction completion certificate from the local municipality before the final deed is registered.

Selling Property

NRNs selling property in Nepal must obtain a No-Objection Certificate (NOC) from the local Ward Office before transfer. Capital gains tax (5% or 10%) is payable by the seller and must be settled before the Land Revenue Office will register the transfer. Sale proceeds may be repatriated abroad through the banking system if the original purchase was funded by documented inward remittance — retain all records. FITTA-registered companies follow the same capital gains rules and must comply with repatriation procedures under the Foreign Exchange Regulation Act.

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