Can Foreigners Buy Property in Nepal? Ownership, Leases & NRN Rights

Foreign nationals cannot own freehold land in Nepal. That rule sits in the Constitution (Article 25), the Lands Act 1964, and the Civil Code 2017. What is possible depends entirely on your legal status: a foreign individual, a foreign-invested company, or a Non-Resident Nepali (NRN) card or citizenship holder. Each route has different limits, approval chains, and registration practices. Below is the practical map — what the law permits, where the friction points are, and which office to approach for each step.

Foreign individuals: no freehold land, narrow exceptions

The Constitution restricts immovable property ownership to Nepali citizens. The Lands Act 1964 (2021 BS) and Civil Code 2017 (2074 BS) implement that bar. A foreign passport holder cannot register land in their own name at any Land Revenue Office (Malpot). The only statutory exception is inheritance — a foreign citizen who inherits land from a Nepali relative may hold it, but cannot sell or transfer it to another foreigner without converting the title to a Nepali citizen first. If you are a foreign individual with no NRN status, direct ownership is off the table.

Foreign companies: leasehold through Department of Industry approval

A company with foreign equity (meeting the foreign-investment threshold under FITTA 2019) can acquire land for its approved business purpose. The route: secure foreign investment approval from the Department of Industry (DOI), then obtain a recommendation from DOI to the relevant Land Revenue Office. The land is granted as leasehold — not freehold — typically for long terms renewable once, under the Industrial Enterprises Act 2020 and the Land Use Act 2019. Area limits vary by sector and location; DOI publishes sectoral guidelines periodically. The lease deed is registered at the Land Revenue Office against the plot (kitta) number. The company cannot sub-lease or mortgage the land without DOI and NRB consent.

NRN card vs. NRN citizenship: two different legal statuses

Do not conflate them. The NRN card (issued under the Non-Resident Nepali Act 2008) is available to foreign citizens of Nepali origin. It grants the right to purchase residential land subject to area ceilings that were set in that Act:
• Kathmandu Valley: 2 ropani (approx. 1,018 sq m)
• Other metropolitan/sub-metropolitan cities: 8 ropani
• Municipalities: 12 ropani
• Rural municipalities: 16 ropani
These limits have not been formally amended since 2008; verify the current ceilings with the NRN Desk or Land Revenue Office before committing funds. The purchase must be for self or family residence. Commercial use requires converting to a company structure. The card holder registers the deed at the Land Revenue Office like a citizen, but the deed notes the NRN status and the area ceiling applies.

NRN citizenship (conferred under the Nepal Citizenship Act 2006, amended 2023) is a form of dual citizenship. Holders enjoy nearly the same property rights as resident citizens — no area ceiling for residential land, and they can hold commercial and agricultural land subject to the same ceilings that apply to citizens (e.g., Terai and Kathmandu limits under the Lands Act ceiling provisions). The critical difference: NRN citizens can also inherit agricultural land without restriction; NRN card holders cannot.

Apartment and unit ownership: the land share is the constraint

The Apartment Ownership Act 2017 (2074 BS) governs condominium-style units. A foreign individual or NRN card holder can buy an apartment unit — the structure — and register it at the Land Revenue Office. The catch: the unit title includes an undivided share of the underlying land (the "land share"). That land share is subject to the same ownership bars above. In practice, developers sell the unit on a leasehold land basis when the buyer is a foreigner or NRN card holder. NRN citizens can acquire the freehold land share. Before signing, confirm with the Land Revenue Office whether the project's land is freehold or leasehold, and whether the developer has obtained the necessary foreign-buyer clearance from DOI (for non-NRN foreigners).

Property in a Nepali spouse's name: common, risky, not a workaround

Buying in a Nepali spouse's or relative's name is routine but creates a legal minefield. Under the Civil Code 2017, property acquired during marriage is joint marital property. If the marriage ends, the foreign spouse can claim a share — but enforcing that claim from abroad is slow and uncertain. Conversely, if the Nepali spouse sells, mortgages, or gifts the property without the foreign spouse's consent, the foreign spouse has limited remedies. The Land Revenue Office registers the deed in the Nepali name only; no separate "foreign interest" column exists. If you take this route, execute a notarized side agreement (under the Contract Act 2000) defining beneficial interest, repatriation rights, and dispute forum. It is not a substitute for legal ownership, and courts have invalidated sham arrangements where the foreigner provided 100% of funds but had no documented interest.

Moving money in and out: NRB categories decide everything

Every property-related rupee must enter through a Nepali bank under a Nepal Rastra Bank (NRB) approved category. For NRN card holders and foreign companies: "Foreign Investment — Property" or "NRN Investment" inflow codes. For NRN citizens: "Returning Nepali" or "NRN Citizen Investment." The bank issues a Foreign Exchange Encashment Certificate at the time of inward remittance — keep the original. Repatriation of sale proceeds is not automatic. You must apply to NRB (through your bank) with: the sale deed, tax clearance (Land Revenue Office + Inland Revenue), the original encashment certificate, and proof the property was held for the minimum period (which varies by investor category). NRB approves case by case. No approval = no outward remittance. Ask your bank before you transfer which inflow code they will use and whether that code has a repatriation track record.

Action checklist: who to approach and what to ask

• Land Revenue Office (Malpot) — Confirm current registration practice for your status (NRN card, NRN citizen, foreign company). Ask: "What documents do you require for a [status] buyer? What is the current area ceiling? Is the land freehold or leasehold?" Get the answer in writing on office letterhead.
• Department of Industry (DOI) — For foreign companies: submit the investment proposal, get the approval letter, then request the land recommendation letter. Ask: "Current maximum lease term for my sector? Any district-level area caps?"
• Nepal Rastra Bank (via your bank) — Before any inward remittance: "Which inflow category will you book this under? Has that category supported full repatriation in the last 12 months? What is the minimum holding period?"
• NRN Desk (Ministry of Foreign Affairs / Non-Resident Nepali Association) — For NRN card or citizenship queries: "Current area limits for my status? Any new circulars since the last amendment?"
• Licensed Nepali advocate — For spouse structures, inheritance, or any dispute risk: retain one before money moves. Ask for a written opinion on enforceability of beneficial-interest agreements under current Civil Code jurisprudence.

Key laws to review (check each for the latest amendment): Constitution of Nepal (Art. 25); Lands Act 1964 (2021 BS) with amendments; Civil Code 2017 (2074 BS), Ch. on Property & Partition; Foreign Investment and Technology Transfer Act 2019 (2075 BS); Industrial Enterprises Act 2020 (2076 BS); Land Use Act 2019 (2076 BS); Apartment Ownership Act 2017 (2074 BS); Non-Resident Nepali Act 2008 (2064 BS); Nepal Citizenship Act 2006 (2063 BS) as amended 2023; NRB Foreign Exchange Regulation 2022 and the latest Property-Related Inflow/Outflow Circular.