NRN Land Purchase in Nepal (2024): A Complete Guide

NRN Services & Consulting with 20 Years of Global Expertise spanning 12 Countries provides Property Purchase and Investment services to Non-Resident Nepali and completely handle all legal and financial requirements.

This Article has covered the Procedure, Eligibility, Documents, and relevant details to be submitted by a Non-Resident Nepali for NRN Land Purchase in Nepal along with Transfer, Selling and More.

Can NRN Purchase Land in Nepal?

Yes, Non-Resident Nepalis have the legal right to purchase Land in Nepal, as per Section 11 of Non-Resident Nepali Rules, 2066. The Government of Nepal also introduces policies to encourage investment, including the right to own land and property. To register such Property, an application must be filed with the Ministry of Foreign Affairs and verified.

 The Amount of property purchasable by any individual as such has been limited by the Rule as follows:

Region/Area	Maximum Area Allowed
Kathmandu Valley	2 Ropani
Municipalities of the Terai	8 Kattha
Other Municipalities (not in (a) or (b))	4 Ropani
Village Development Committees of the Terai (not in (b))	One Bigaha
Other Areas (not in (a), (b), (c), or (d))	10 Ropani

This table presents the maximum area allowed for land purchase by foreign citizens of Nepali origin in various regions of Nepal.

What are the types of NRN Land Purchase in Nepal?

The Types of Land purchasable by Non-Resident Nepali are as follows:

(a) In the Kathmandu Valley, foreign citizens of Nepali origin are allowed to purchase land up to a maximum area of 2 Ropani.

(b) These individuals are permitted to acquire land within the municipalities of the Terai district, with the maximum allowable area set at 8 Kattha.

(c) In municipalities other than those specified in (a) and (b), foreign citizens of Nepali origin can purchase land, provided the area does not exceed 4 Ropani.

(d) In village development committees of the Terai district, excluding those mentioned in (b), these individuals have the opportunity to purchase land up to One Bigaha.

(e) In areas not specified foreign citizens of Nepali origin are eligible to acquire land up to a maximum area of 10 Ropani.

NRNs can purchase various types of property in Nepal, including land, houses, apartments, commercial buildings, and agricultural land. However, there are restricts on the type of property depending on the location and purpose of the use of Property.

What is the procedure for buying land in Nepal as an NRN?

Step 1: Submission of Application to MOFA

Step 2: Obtaining Permission from Secretary

Step 3: Registration of Land through Malpot Office

Step 4: Issuance of Blue Colored Certificate

Step 1: Submission of Application to MOFA

As a foreign citizen of Nepali origin intending to purchase land or other property in Nepal, the individual must submit an application to the Ministry of Foreign Affairs. The Application should include details such as the location, area, and price of the land you intend to purchase, either in your own name or your family’s name.

Step 2: Obtaining Permission from Secretary

Upon submission of the application, the secretary will review it. After conducting an inquiry and ensuring that nothing contravenes the Act or the Rules, the secretary will grant permission for the purchase of the land and other immovable property in Nepal. This permission is granted to the applicant or their family.

Step 3: Registration of Land through Malpot Office

Following the receipt of permission, the concerned office responsible for land registration will proceed with the registration process. The land will be registered in the name of the foreign citizen of Nepali origin who intends to purchase the property, or in their family’s name

Step 4: Issuance of Blue Colored Certificate

The concerned land revenue office will issue a blue-colored certificate, known as the land owner certificate, for immovable property purchased by the Non-Resident Nepali.

What documents are needed to buy property as NRN?

The Documents required for Non-Resident Nepali to buy property in Nepal are:

1. Copy of Foreign Citizenship Certificate and Passport
2. Landowner Land Registration Certificate
3. Receipt of Tax Payment 
4. Application Form for Purchase of Land
5. Copy of the Landowner Citizenship
6. Photocopy of NRN ID Card
7. Blueprint of the Land Map

NRN Services and Consulting provides exclusive Consultation Services for buying Land and Property in Nepal backed by legal expertise and practice.

Are there any restrictions on NRN property ownership?

Yes, the Non-Resident Nepali Act has set the above restrictions on purchasing Property within Nepal whereby not more than 2 Ropani of Land can  be purchased by the Non-Resident Nepali and so forth. NRNs need to to obtain approval from the relevant government authorities before buying certain types of property, especially land and agricultural land.

Can NRNs buy agricultural land?

NRNs are generally prohibited from purchasing agricultural land in Nepal. However, there are exceptions for those with Nepali citizenship or if the land is inherited. NRNs may be allowed to lease agricultural land for specific purposes, subject to government regulations and approval.

What are the legal procedures for property purchase?

The Legal Procedure for the purchase of Land Property in Nepal have been discussed above. The Property Title of the Non-Resident Nepali must be verified along with the NRN ID Card, due diligence must be conducted, the purchase agreement must be drafted and signed and the necessary permits and clearance must be thoroughly done. The Property must also be registered with the Relevant Government Authorities.

How to register property in Nepal?

To register property in Nepal, NRNs need to follow specific procedures outlined through our assistance. We provide exclusive Legal and Financial Consultation for such decision. Usually, the process involves submitting the necessary documents, such as the sale deed, tax clearance certificate, citizenship certificate (if applicable), and other relevant paperwork, to the Land Revenue Office or the concerned municipality.

Are there any taxes on property purchase?

Yes, there are taxes applicable to property purchases in Nepal. Usually the buyer is responsible for paying Stamp Duty which is a percentage of the Value of the Property along with the Registration Fee. The Seller of the Land must also pay Capital Gain Tax. It is recommended to consult to understand accurately the procedure of the above.

Can NRNs buy property jointly with locals?

NRN’s can engage in Joint Ownership Ventures and Agreements through Foreign Investment Procedure. It generally requires Legal Assistance.

How to finance property purchase in Nepal?

NRNs can finance property purchases in Nepal through various means, including personal savings, bank loans, or mortgage financing. Banks and financial institutions in Nepal offer housing loans to both residents and NRNs, although subject to Eligibility Criteria and required documents.

Can NRNs sell property in Nepal?

Yes, NRNs can sell property in Nepal. However, they must comply with the relevant laws and regulations governing property transactions. Before selling the Property, the Deed of Sale, the Citizenship of both Parties, Latest Tax Documents, Tax Clearance, Repatriation Mechanisms and the Taxation Mechanism must be figured out. Legal Assistance must be necessary as well.

What is the cost of property registration?

The Cost of Purchasing Land as NRN in Nepal  depends on the Value of the Property, length of the Procedure and the Legal Aid chosen to purchase the Property. The total cost is calculated according to the percentage of the Property’s Value.

Can NRNs inherit property in Nepal?

Yes, Non-Resident Nepali can inherit property in Nepal in accordance with the Succession and Partition Laws in the Muluki Civil Code, 2074. Partition of Property, either inheritance, succession or either requires expert legal guidance to understand the right, obligation and procedure to transfer ownership of the inherited property.

Are there any property disputes for NRNs?

Property Disputes requires Expert Property Legal Professionals. NRN Services & Consulting has extensive experience in dealing with National and International Property Disputes such as Boundary, Ownership, Fradulent Transaction, Inheritance and more. The individual must conduct thorough Due Diligence of the Property and seek resolution through Legal Channels or Alternative Dispute Resolution Mechanisms.

Can NRNs lease property in Nepal?

Yes, NRNs can lease property in Nepal for residential, commercial, or agricultural purposes, usually through FDI and its incorporated companies. The Property can be used for specified period without assuming full ownership. The lease agreement requires expertise to draft it.

What are the benefits of owning property in Nepal?

Owning Property in Nepal as a Non-Resident Nepali provides benefits to the individual such as Residential Place during visits, Long Term Asset building and secure Future Retirement Planning.

How to resolve property disputes?

Property disputes in Nepal can be resolved through various means, including negotiation, mediation, arbitration, or litigation. NRNs involved in property disputes should first attempt to resolve the issue amicably through negotiation or mediation with the other parties involved. If a resolution cannot be reached, they may pursue legal action through the courts. NRN Services and Consulting provides legal assistance in resolving property disputes in Nepal.

Conclusion

NRN Services & Consulting, with Two Decade Long Expertise across 12 Countries, offers Property Purchase and Investment Services to Non-Resident Nepali along with complete Legal and Financial Assistance. NRNs can purchase land property in Nepal by submitting applications to the Ministry of Foreign Affairs, obtaining permission from the Secretary, registering the land through the Malpot Office, and receiving a blue-coloured certificate.

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