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Introduction
Yes, a Non-Resident Nepali (NRN) can buy property in Nepal, but subject to specific legal conditions and land ceiling limits. After the constitutional recognition of NRN Citizenship under Article 14 of the Constitution of Nepal and subsequent amendments to the Nepal Citizenship Act, NRN citizens are allowed to enjoy economic, social, and cultural rights including property ownership. However, NRN property rights are regulated by land laws, foreign investment regulations, and administrative directives. This guide explains who can buy property, how much land is allowed, legal procedures, and important restrictions.
Legal Framework Governing NRN Property Ownership
NRN property rights in Nepal are regulated by:
Article 14 of the Constitution of Nepal (2015)
Nepal Citizenship Act, 2063 (as amended 2079/2023)
Non-Resident Nepali Act, 2064
Land Act, 2021 (1964)
Foreign Investment and Technology Transfer Act (FITTA), 2075
Land Revenue Act, 2034
Ministry of Land Management Directives
NRN citizenship grants economic rights but does not grant full constitutional rights.
Key Legal Position: Can NRN Buy Property?
✅ Yes — If You Hold NRN Citizenship
An NRN who has obtained NRN Citizenship Certificate can:
Purchase residential land
Buy house or apartment
Invest in commercial property (subject to business registration)
Inherit ancestral property
❌ No — If You Do Not Have NRN Citizenship
A foreign citizen of Nepali origin without NRN citizenship cannot directly buy land in Nepal, except through:
Company registration under FITTA
Approved foreign investment project
5. NRN Buying Property in Nepal
What?
NRN citizens can legally purchase property in Nepal under economic rights.
Who?
Foreign citizens of Nepali origin holding valid NRN citizenship (excluding SAARC nationals).
Why?
To:
Reside in Nepal
Invest in real estate
Start a business
Maintain ancestral connection
Where?
Anywhere in Nepal, subject to land ceiling limits.
When?
After obtaining NRN Citizenship Certificate.
How?
Through Land Revenue Office registration following standard property transfer procedure.
Eligibility to Buy Property
To legally buy property in Nepal as an NRN:
Must hold NRN Citizenship Certificate
Must have valid foreign passport
Must obtain PAN (Permanent Account Number)
Must comply with land ceiling laws
Must follow tax compliance requirements
Land Ceiling Limit for NRN in Nepal
NRN citizens are subject to the same land ceiling limits as Nepali citizens, under the Land Act.
General Land Ceiling (Approximate Limits)
Terai: Up to 10 Bigha
Kathmandu Valley: Limited Ropani (varies by district)
Hills: Different limits depending on region
⚠ Land ceiling rules may vary by district and are subject to government amendment.
Documents Required for NRN Property Purchase
NRN Citizenship Certificate
Foreign Passport copy
PAN Certificate
Passport-size photographs
Tax clearance (if applicable)
Property ownership documents (from seller)
Land map and trace map
Valuation certificate
All documents must be verified at the Land Revenue Office (Malpot Office).
Step-by-Step Process to Buy Property in Nepal as NRN
Step 1: Obtain NRN Citizenship
Without NRN citizenship, direct purchase is not allowed.
Step 2: Obtain PAN Registration
Mandatory for tax and property registration.
Step 3: Property Due Diligence
Verify land title
Check encumbrances
Confirm land classification
Ensure compliance with zoning rules
Step 4: Agreement & Payment
Execute sale agreement and make payment through legal banking channel.
Step 5: Registration at Land Revenue Office
Submit documents
Pay registration tax
Transfer ownership officially
Step 6: Update Land Records
New ownership recorded in government land registry.
Cost Involved in Property Purchase
Government Charges:
Registration fee: 4%–6% (varies by province)
Capital gains tax (paid by seller)
Service charge
Additional Costs:
Legal due diligence fees
Documentation & valuation fees
Banking charges
Timeline for Property Registration
Document verification: 1–3 days
Registration process: 1–2 days
Total typical timeframe: 3–7 working days
Delays may occur due to:
Incomplete documents
Land disputes
Administrative backlog
Important Compliance Requirements
NRNs must:
Declare investment source
Comply with anti-money laundering laws
Follow tax regulations
Register business (if commercial use)
Obtain municipal approval for construction
Non-compliance may lead to penalties or cancellation.
Frequently Asked Questions
1. Can NRN buy land in Nepal?
Yes, NRN citizens can buy land in Nepal within land ceiling limits.
2. Can NRN buy property without NRN citizenship?
No. Without NRN citizenship, direct land purchase is not permitted.
3. Can NRN inherit property in Nepal?
Yes. NRN citizens can inherit ancestral property legally.
4. Is there land size limitation for NRN?
Yes. Land ceiling rules under the Land Act apply.
5. Can NRN sell property later?
Yes, NRN citizens can sell property following normal legal procedure.
6. Do NRN need to pay tax in Nepal?
Yes, property registration tax and applicable taxes must be paid.
7. Can NRN buy agricultural land?
Yes, but agricultural land use regulations must be followed.
8. Can US citizen of Nepali origin buy property?
Yes, if they obtain NRN citizenship and meet legal requirements.
Conclusion
NRN citizens can legally buy property in Nepal under constitutional and statutory provisions. However, ownership is subject to land ceiling limits, tax compliance, and regulatory conditions. Obtaining NRN citizenship is mandatory before purchasing property directly. Proper legal due diligence ensures secure investment and prevents future disputes.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Property laws and administrative practices in Nepal are subject to amendment. Always consult a qualified legal professional or Land Revenue Office before making property investments in Nepal