NRN Property Buying Guide: How Non-Resident Nepalis Can Own Land in Nepal (2025)

Living abroad but want to buy property in Nepal? This complete guide explains NRN eligibility, land ownership rules, apartment vs. land laws, and the legal steps to buy property from overseas.

The NRN Dream: Owning Property Back Home

Millions of Nepalis live and work abroad—in Australia, the USA, UK, Gulf countries, and beyond. Many dream of buying a piece of land or a house back home for retirement, investment, or simply to maintain roots.

But the question is: Can Non-Resident Nepalis (NRNs) legally buy property in Nepal?

The short answer: It’s complicated.

Who is an NRN?

Under the Non-Resident Nepali Act 2064, an NRN is:

A foreign citizen of Nepali origin (someone who was a Nepali citizen or whose ancestors were), OR
A Nepali citizen permanently residing abroad (holding residency in another country)

Key Point: Citizenship Matters

Category	Can Buy Land?	Can Buy Apartment?
Nepali Citizen (living abroad)	✅ Yes	✅ Yes
Foreign Citizen (Nepali origin)	❌ No*	✅ Yes (1 unit)
Foreign Citizen (non-Nepali)	❌ No	❌ No

*Foreign citizens of Nepali origin can invest in apartments but cannot own land directly.

The Golden Rule: Land vs. Apartment

Nepal’s laws treat land and apartments very differently for NRNs.

Land (Jagga)

Who Can Buy: Only Nepali citizens.
NRNs with Foreign Citizenship: CANNOT buy land in Nepal.
NRNs with Nepali Citizenship: CAN buy, but face practical challenges (bank accounts, presence requirements).

Why? Nepal’s land laws protect against foreign ownership. Land is considered a national resource.

Apartment (Flat/Condominium)

Who Can Buy: NRNs (including those with foreign citizenship) are eligible under the NRN Act to purchase units regulated by the Apartment Ownership Act 2054.
Limit: One apartment per NRN.
Use: Personal residence (not for commercial rental subletting without permission).

Key Law: While the Apartment Ownership Act regulates the building, the NRN Act provides the specific eligibility for non-citizens of Nepali origin to own this specific asset class.

Pathway 1: You Still Have Nepali Citizenship

If you’re abroad but retained your Nepali citizenship (green passport), you have full property rights.

How to Buy Land:

Power of Attorney (POA): If you can’t travel to Nepal, grant a POA to a trusted family member or lawyer. This allows them to negotiate, sign, and register on your behalf.
Bank Account: Open or maintain a Nepali bank account. Payment for property must flow through the banking system.
Malpot Registration: Your representative will handle the registration at the Land Revenue Office.
Considerations:
- You need your original Nagarikta (Citizenship Certificate).
- If lost, you must apply for a duplicate from the District Administration Office (DAO).

Repatriation of Funds

If you’re sending money from abroad to buy property:

Nepal Rastra Bank allows remittance for property purchase.
Keep all bank transfer records for tax purposes.
There’s no limit on how much you can send, but large amounts may trigger scrutiny.

Pathway 2: You Have Foreign Citizenship

If you’ve taken citizenship of another country (Australia, USA, UK, etc.), you’ve legally lost Nepali citizenship (Nepal doesn’t allow dual citizenship).

What You CAN Do:

Buy an Apartment: Under the Apartment Ownership Act, you can buy one apartment for personal use.
Invest in Companies: You can invest in Nepali companies (including real estate companies) under the Foreign Investment and Technology Transfer Act (FITTA).
Hold Shares: NRNs can hold shares in Nepali companies listed on NEPSE.

What You CANNOT Do:

Buy agricultural land (Khet Bari).
Buy residential land plots (Jagga).
Own multiple apartments.

The Apartment Loophole

Many NRNs use apartment ownership as a foothold. Apartments in Kathmandu, Pokhara, and other cities are legally purchasable and can appreciate in value.

Process:

Choose a registered apartment project (developer must be licensed).
Sign a Purchase Agreement.
Pay via bank remittance (keep records).
Register at the Land Revenue Office (apartment unit registration separate from land).
Get the apartment ownership certificate (Flat Ko Lalpurja).

Power of Attorney: The Key to Distance Transactions

For NRNs who can’t travel, the Power of Attorney (POA) is essential.

Types:

General POA: Broad powers covering multiple transactions.
Special POA: Specific to one transaction (e.g., buying one property).

How to Get It:

Draft the POA document (in Nepali/English).
Get it notarized by a Nepal Embassy or Consulate in your country.
The notarized POA is valid in Nepal for property transactions.

Caution:

Only grant POA to someone you completely trust.
Revoke POA immediately after the transaction is complete.
Bad actors have used POAs to sell property without the owner’s knowledge.

Tax Implications for NRNs

Capital Gains Tax (When Selling):

If you sell property:

Owned for less than 5 years: 10% Capital Gains Tax.
Owned for more than 5 years: 5% Capital Gains Tax.

Rental Income Tax:

If you rent out property:

Rental income is taxable in Nepal.
You must file an annual return with the Inland Revenue Department.

Country-Specific Double Taxation:

Some countries (like Australia) may tax your Nepal rental income as well. Check if a Double Taxation Avoidance Agreement (DTAA) exists between Nepal and your country.

Common Scams Targeting NRNs

1. Fake Lalpurja (Land Ownership Certificate)

Fraudsters forge land certificates and sell non-existent plots to NRNs who can’t verify in person.

Prevention: Always verify the Lalpurja at the Malpot office. Use a trusted lawyer.

2. POA Abuse

The POA holder uses their power to sell your property to themselves or a third party.

Prevention: Use Special POA (limited scope). Revoke immediately after use.

3. “Under Construction” Projects

Developers take money and never complete the project.

Prevention: Only buy from licensed developers. Verify project completion status.

4. Joint Family Property Confusion

NRNs buy property that turns out to be jointly owned (undivided). Other family members claim rights.

Prevention: Check for “Ansabanda” (partition) completion before buying.

Checklist for NRN Property Buyers

✅ Verify your citizenship status (Nepali or foreign).

✅ If Nepali citizen: Ensure your Nagarikta is valid.

✅ If foreign citizen: Limit to apartment purchase.

✅ Grant a proper POA if buying from abroad.

✅ Verify property at Malpot (Rokka status, ownership).

✅ Use bank transfers for all payments.

✅ Hire a local lawyer for due diligence.

✅ Register the property in your name (not a relative’s).

Conclusion

Buying property in Nepal as an NRN is absolutely possible—but it requires careful navigation of citizenship laws, property regulations, and practical logistics.

Whether you’re a Nepali citizen abroad looking to buy land or a foreign citizen of Nepali origin seeking an apartment, understanding your legal standing is the first step.

Don’t let distance make you vulnerable to fraud. Work with a trusted legal team.

Disclaimer: NRN property laws are complex and case-specific. This guide provides general information. For specific transactions, consult our property law specialists.