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The property rights of Non-Resident Nepalis (NRNs) in Nepal are governed by the NRN Act, 2008, and the Nepal Citizenship Act, 2006. NRNs of Nepali origin (see NRN citizenship in Nepal) are allowed to purchase, own, and sell certain types of property within Nepal. They can own residential properties such as houses, apartments, and land for personal use, but are restricted from acquiring agricultural land. These rights aim to maintain a strong connection between Nepal and its diaspora while regulating land ownership. The government's policy encourages NRN investment in Nepal's economy while safeguarding national interests and land resources.
"Non-resident Nepali" means a foreign citizen of Nepalese origin, and this term also includes a Nepalese citizen residing abroad.
- "Foreign citizen of Nepalese origin" means a person who himself/herself or whose father, mother, grandfather or grandmother was a citizen of Nepal at any time and has subsequently acquired the citizenship of any other foreign country other than a member country of the South Asian Association of Regional Co-operation (SAARC).
- "Nepali citizen residing abroad" means a Nepali citizen who has been residing in any foreign country for at least Two years by doing any profession, occupation, business and employment except a Nepalese citizen residing in a member country of SAARC or Serving in a diplomatic mission or consulate situated in a foreign country under the assignment of the government of Nepal and doing study in an academic institution situated in a foreign country.
Legal Instrument relating to property rights of Non-Resident Nepali:
The laws that govern Non-Resident Nepali are:
- Constitution of Nepal, 2072
- Non-Resident Nepali Act, 2064
- The National Civil Code, 2074
- Foreign Investment and Technology Transfer Act (FITTA), 2075
Modes of acquiring property by NRN in Nepal
- By purchase
- By Inheritance
- By Investment
1. By purchase
NRNs are allowed to purchase a residential plot of land in different areas of Nepal, as per the NRN rules, not exceeding the following areas:
| S.N | Plot of Land (Maximum) | Areas for Purchase |
|---|---|---|
| a. | 2 Ropani | Inside Kathmandu Valley |
| b. | 8 Kattha | In municipalities of Terai district |
| c. | 4 Ropani | In municipalities of other districts except mentioned in (a) and (b) |
| d. | 1 Bigaha | Other areas of Terai district except mentioned in (b) |
| e. | 10 Ropani | In other areas except mentioned in (a), (b), (c) and (d) |
Procedure for buying land in Nepal
- Step 1: The NRN must first possess a valid NRN Card.
- Step 2: The land must be verified, including confirmation of boundaries and ensuring there are no legal disputes or issues.
- Step 3: Approval must be obtained from the Ministry of Land Management or the relevant authority.
- Step 4: A sales agreement must be prepared, clearly outlining the terms of purchase and the payment schedule.
- Step 5: An application must be submitted to the Secretary of the Ministry of Foreign Affairs (MoFA), mentioning the intended location, area, and agreed price of the land to be purchased for themselves or their family.
- Step 6: After necessary inspections, the MoFA grants permission to buy the land or other immovable property.
- Step 7: The Land Registration Office officially records the property under the NRN's name.
- Step 8: Finally, the Land Revenue Office issues a blue-colored ownership certificate to the buyer.
Documents required for purchase
- Citizenship copy of land owner
- Copy of NRN card
- Copy of Passport or Foreign Citizenship Card
- Copy of Lal Purja (Land Registration Certificate)
- Tax receipt of property
- House Completion Certificate
- Trace map for a house buyer
- Land purchase form
2. By Investment
NRN are only allowed to invest in certain areas according to the FITTA in Nepal. They are as follows:-
- Share investment in foreign currency;
- Re-investment in an industry of dividends derived from foreign currency or shares;
- Lease finance;
- Investment made in a venture capital fund;
- Investment made in listed securities through the secondary securities market;
- Investment made by purchasing shares or assets of a company incorporated in Nepal;
- Investment received through the banking channel after issuing securities in a foreign capital market by an industry or company incorporated in Nepal;
- Investment made through technology transfer; and
- Investment is maintained by establishing and expanding an industry in Nepal.
Eligibility Criteria for investment by NRN's
- A minimum investment of NPR 20 million in company equity shares is mandatory (though this threshold may be waived for certain sectors as determined by the Government of Nepal).
- The chosen business sector must not be included in the Negative List under the Foreign Investment and Technology Transfer Act (FITTA).
- The business must fall under the industries classified as “Industry” in the Industrial Enterprises Act, 2020.
Procedure for Foreign Investment by NRN in Nepal
- Step 1: Register for NRN Citizenship at the Chief District Officer (CDO) office, a Nepali embassy abroad, or apply for an NRN ID through the Department of Foreign Employment to obtain the NRN Card.
- Step 2: Seek approval from the Department of Industry and the Investment Board Nepal for making foreign investments, depending on the nature of the business.
- Step 3: If investing in a new industry, the formation and registration of a local company is required.
- Step 4: Open a bank account and secure a PAN from Nepal Rastra Bank (NRB).
- Step 5: Obtain all necessary approvals for industry operation, including environmental clearances where applicable.
- Step 6: Once all formalities are completed, acquire an investment certificate from the bank as evidence of foreign investment in Nepal.
- Step 7: Register the foreign investment with Nepal Rastra Bank.
- Step 8: Notify the Ministry of Foreign Affairs about the investment using the prescribed format.
3. By Inheritance
Non-Resident Nepalis (NRNs) of Nepali origin are allowed to inherit property in Nepal under existing laws. If an NRN's family member, such as parents, grandparents, or other close relatives, legally owns property in Nepal, the NRN can inherit that property through succession. However, to officially claim inherited property, the NRN must first prove their Nepali origin and relationship to the deceased property owner.
After inheritance, NRNs are required to register the property in their name through the local land revenue office. They must also comply with legal processes like submitting necessary documents, verifying their NRN status, and sometimes obtaining approval from relevant government offices. Importantly, while NRNs can inherit any type of property, they may face restrictions if they later try to sell agricultural land, depending on government regulations.
This system ensures that Nepali-origin individuals maintain their family ties and property rights even while living abroad.
Non-Resident Nepali (NRN) Property Lawyer in Nepal
At Alpine Law Associates, we understand that owning property in Nepal as a Non-Resident Nepali (NRN) involves navigating a maze of regulations, eligibility checks, and procedural formalities. As a legally registered full-service law firm based in Kathmandu, we specialize in NRN property rights and all related legal matters. Whether you are planning to purchase land, inherit ancestral property, or invest in real estate from abroad, our team provides end-to-end legal solutions tailored to NRNs.
We don't just offer legal advice—we walk with you through every step of the process. From verifying eligibility and preparing required documents to liaising with government offices and securing ownership certificates, we handle it all with precision and transparency. For clients living overseas, our remote legal representation ensures that your rights are protected without needing to be physically present in Nepal.
What sets Alpine apart is our practical experience, up-to-date legal expertise, and commitment to confidentiality. With countless successful NRN cases handled, our firm has earned the trust of Nepali diaspora worldwide. If you are looking for a reliable NRN lawyer in Nepal, you can rest assured that Alpine Law Associates is here to safeguard your legal interests, your property, and your peace of mind.
Conclusion
In conclusion, the property rights of Non-Resident Nepalis (NRNs) represent a vital link between the global Nepali diaspora and their roots in Nepal. For broader legal guidance, explore our immigration law practice area. With clearly defined legal provisions under the Constitution, NRN Act, and Citizenship laws, eligible NRNs can legally own property, invest, and inherit assets in Nepal—although with specific conditions. However, the legal process can be complex and time-consuming without the right guidance. That's where Alpine Law Associates comes in. As a dedicated legal partner to NRNs worldwide, we're here to ensure that your journey—from application to ownership—is seamless, lawful, and secure. Whether you're reclaiming family property, planning an investment, or simply safeguarding your heritage, our expert legal team is just a call away.
Frequently Asked Questions
Yes, NRNs can own property in Nepal under the Non-Resident Nepali Act, 2064 and Muluki Civil Code, 2074:
- Residential property: Allowed — houses, apartments, flats
- Commercial property: Allowed — shops, offices, warehouses
- Agricultural land: Generally restricted — NRNs cannot buy farmland
- Eligibility: Must hold NRN card issued by the Department of Immigration
See our NRN legal services for full guidance.
NRNs can purchase specific categories of property:
| Property Type | Allowed? | Notes |
|---|---|---|
| Residential house/land | ✅ Yes | Subject to area limits by location |
| Apartment/flat | ✅ Yes | No area restriction for apartments |
| Commercial property | ✅ Yes | For business purposes |
| Agricultural land | ❌ No | Restricted under current law |
| Guthi (trust) land | ❌ No | Cannot be privately owned |
Related: property law in Nepal.
Yes, land ownership limits vary by geographic zone:
| Location | Maximum Land |
|---|---|
| Kathmandu Valley | 2 Ropani |
| Terai (plains) | 8 Kattha |
| Hill areas | 4 Ropani |
| Mountain areas | As per local regulations |
Apartments: No land area ceiling applies to apartment purchases. These limits apply only to land plots — NRNs should verify current limits as they may change with policy updates.
The step-by-step process for NRN property purchase:
- Obtain NRN card: Apply at Department of Immigration with foreign passport + proof of Nepali origin
- Property search: Identify and verify the land at the Land Revenue Office
- Due diligence: Check ownership title, encumbrances, liens, and boundary disputes
- Sale agreement: Draft and sign with seller (recommended through a legal document drafter)
- Government approval: Apply to Ministry of Land Management for NRN purchase approval
- Registration: Register the deed at the Land Revenue Office and pay applicable taxes
Having a property lawyer is strongly recommended throughout.
Yes, NRNs have full inheritance rights in Nepal under the Muluki Civil Code, 2074:
- Equal right: NRN sons and daughters inherit equally from parents
- Nata Kayam required: Must obtain Nata Kayam certification to prove family relationship
- Succession law applies: Governed by succession laws — same rules as resident Nepalis
- From abroad: Can authorize representative through Power of Attorney
Inheritance by NRNs does not require separate government approval, but registration does:
- No purchase approval needed: Unlike buying property, inheriting does not require Ministry approval
- Registration required: Inherited property must be registered at the Land Revenue Office in the NRN's name
- Nata Kayam: Court-issued kinship certificate must be submitted
- Tax obligations: Registration fees and applicable taxes must be paid during name transfer
If the property exceeds NRN ownership limits, the excess must be disposed of within the prescribed period.
NRN property owners are subject to several taxes and fees:
| Tax/Fee | When Applicable | Approximate Rate |
|---|---|---|
| Registration fee | At purchase/transfer | 4–6% of property value |
| Capital gains tax | Upon selling property | 5–10% of profit (varies by holding period) |
| Annual land tax | Yearly | Nominal — varies by municipality |
| Rental income tax | If renting out | As per income tax rates |
NRNs must file taxes through a Nepali PAN or authorized representative.
Yes, NRNs can sell their property freely in Nepal:
- To Nepali citizens: No restrictions — standard sale process applies
- To other NRNs: Buyer must meet NRN property ownership eligibility
- Capital gains tax: Must be paid on profit from sale
- Process: Sale deed executed at Land Revenue Office
- From abroad: Can authorize sale through Power of Attorney
It is advisable to get a proper valuation and legal review before selling. See property partition if selling jointly owned property.
Physical presence is helpful but not mandatory:
- Power of Attorney: NRNs can authorize a trusted person in Nepal to complete the purchase on their behalf
- Embassy attestation: POA must be notarized and attested by the Nepali Embassy in the country of residence
- What representative can do: Property verification, agreement signing, registration at Land Revenue Office, tax payment
- What requires presence: Some offices may require the NRN's physical presence for final registration — check with your municipality
Our NRN services team handles the entire process remotely.
As a leading law firm in Nepal, Alpine Law Associates specializes in NRN property matters:
- Property due diligence: We verify titles, boundaries, and legal status before purchase
- Purchase process: We handle approvals, documentation, and Land Revenue registration
- Inheritance claims: We obtain Nata Kayam and manage property transfers
- Power of Attorney: We draft and coordinate POA for NRNs abroad
- Tax compliance: We advise on registration fees, capital gains, and annual obligations
Contact us at +977-9841114443 or visit Anamnagar-29, Kathmandu.
Disclaimer:
This article is intended solely for informational purposes and should not be interpreted as legal advice, advertisement, solicitation, or personal communication from the firm or its members. Neither the firm nor its members assume any responsibility for actions taken based on the information contained herein.