Non-Resident Nepali (NRN) Property Rights in Nepal

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 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

1. By purchase
2. By Inheritance
3. 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:

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. 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.