Buying a property in Nepal

How to Buy Property in Nepal – A Step-by-Step Guide

For Nepali Citizens (Locals):

1. Determine Your Budget and Location

• Decide on the type of property (land, house, apartment).

• Choose your preferred location (city, rural, or suburbs).

• Set your budget, including taxes, registration, and legal fees.

2. Search for Property

• Use local real estate agents, websites, or word of mouth.

• Visit properties and verify ownership documents (Land Ownership Certificate "Lal Purja").

3. Conduct a Land/Property Search

• Visit the Land Revenue Office (Malpot Karyalaya) to:

  • Verify the seller is the legal owner.

  • Confirm the land is not under dispute or government restriction.

  • Check land type (residential, agricultural, commercial, etc.)

4. Negotiate Price & Draft Agreement

• Once satisfied, negotiate the final price.

• Draft a preliminary agreement (if needed), including payment terms.

5. Obtain a Property Valuation

• Submit an application to the local Malpot Office for an official valuation.

• Pay applicable taxes (e.g., 4–6% property registration tax depending on location).

6. Ownership Transfer & Registration

• Prepare legal documents, including:

  • Citizenship Certificate

  • Original Land Ownership Certificate

  • Tax clearance

  • Notary documents

• Complete the property transfer at the Land Revenue Office.

• Register the property in your name and receive the updated Lal Purja.

For Foreign Nationals / Tourists:

⚠️Important: Foreign nationals (non-residents) currently cannot directly purchase land or property in Nepal, under the existing Land Act and Foreign Investment laws. However, there are a few legal alternatives:

1. Know the Legal Restrictions

• Foreigners cannot own land in Nepal unless:

  • They acquire Nepali citizenship (e.g., through naturalization or marriage).

  • Or, they are investing under an approved Foreign Direct Investment (FDI) scheme (only for commercial/industrial purposes).

2. Invest Through a Registered Company (For Business Use)

• Foreigners can:

  • Register a company in Nepal (minimum capital investment: NPR 50 million+).

  • Purchase commercial real estate under the company’s name (not personal).

  • Approval needed from the Department of Industry and Nepal Rastra Bank.

3. Property Ownership via Marriage (If Married to a Nepali Citizen)

• A foreign spouse may be allowed to co-own or inherit property based on family law provisions, but it is a complex and often restricted process.

4. Lease Property (Alternative Option)

• Foreigners can legally lease property or apartments on long-term agreements (up to 50 years for commercial leases).

• Ideal for tourism operators, NGOs, or expats.

5. Consult a Local Property Lawyer

• Legal advice is essential to:

  • Navigate restrictions.

  • Avoid scams or false ownership.

  • Handle paperwork and regulatory compliance.

📌 Summary

In summary, Nepali citizens are fully allowed to own residential and commercial property, lease land, and engage in property transactions through the Land Revenue Office. They can purchase both residential and business properties without restrictions. In contrast, foreigners are not allowed to purchase residential property in Nepal. However, they can lease properties, including apartments and commercial spaces, and may acquire commercial property by establishing a registered company under Foreign Direct Investment (FDI) regulations. This process requires approval from the Department of Industry and Nepal Rastra Bank. While locals deal primarily with the Land Revenue Office, foreign investors must go through additional regulatory channels to ensure legal compliance.