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Nepal Legal Firm

How to Register Land in Nepal (Malpot Process) 2025

May 15, 2025
Utsav Prakash Sigdel
2 min read

Buying land? Don't get scammed. Follow this step-by-step guide to the 'Malpot' registration process, tax rates (4-5%), and the Blue/Red Lalpurja.

Malpot Land Tax Property Law Real Estate

The “Lalpurja” Dream

In Nepal, owning a “Lalpurja” (Red Land Ownership Certificate) is the ultimate security. But the path to getting one is filled with paperwork, brokers, and potential pitfalls under the Land Act 2021 and Civil Code 2074.

Step 1: Verification (The Most Important Step)

Before you pay a single rupee:

  1. Check the “Rokka” Status: Go to the Land Revenue Office (Malpot). Is the land frozen (Rokka) by a bank or court? If yes, it cannot be sold.
  2. Field Visit: Compare the Cadastral Map (Napi Naksha) with the actual ground reality. Does the map match the road access?
  3. Owner Check: Ensure the seller is the actual person on the photo in the Lalpurja.

Step 2: The “Likhit” (Deed)

  • Local scribes or lawyers draft the Sales Deed (Rajinama).
  • You must state the “ThailI” amount (Transaction Value).
  • Warning: Undervaluing the land to save tax is illegal and risky. If the government acquires the land later, you get compensated based on this low value.

Step 3: Paying the Taxes (2025 Rates)

There are two main costs:

  1. Registration Fee:
    • Metropolitan City: ~4% of valuation.
    • Municipalities: ~4-4.5%.
    • Discount: 25-50% Discount if the land is registered in a Woman’s Name. (A great policy to empower women!).
  2. Capital Gains Tax (CGT): Paid by the Seller.
    • Owned for <5 Years: 7.5% (Increased from 5% in recent amendments).
    • Owned for >5 Years: 5%.

Step 4: The Transfer

  • Both Buyer and Seller must be present at Malpot.
  • Thumbprints (biometrics) and photos are taken.
  • The officer verifies everything and issues the new Lalpurja to the buyer.

Types of “Purja”

  • Red (Lalpurja): Full private ownership (Raikar).
  • White (Nissa): User rights (often on government land, restricted ownership).
  • Joint Ownership: Husband and Wife can own land jointly (Samyukta Purja).

Conclusion

Never rely solely on a “Dalal” (Broker). Always verify the map and the “Rokka” status personally at the Malpot office. A verified Lalpurja is wealth; an unverified one is a lawsuit waiting to happen.

Important Note

This article provides general information and should not be considered as specific legal advice. Always consult with a qualified attorney for your particular situation.

Utsav Prakash Sigdel

Senior Legal Advisor with expertise in corporate law and legal consultation.