Can foreigners buy property in Nepal? Unfortunately, the short answer is no. Foreign nationals cannot purchase property in Nepal for personal use, such as buying a home to live in or a holiday residence. Nepal’s laws remain quite strict in safeguarding the nation’s real estate, prioritizing its citizens.
How Can Foreigners Buy Property in Nepal Legally?
However, there’s a different scenario where a foreigner can purchase property. If you are an entrepreneur or business owner, looking to expand your operations into Nepal, you can acquire property as long as it’s for business purposes.
By registering a limited company within Nepal, you are allowed to purchase land or a building to conduct your business. In this case, you can hold 100% ownership of the property through your registered business.
This opportunity presents a unique advantage for foreign investors or companies aiming to establish a footprint in the nation. So, while residential property might be off-limits, commercial property acquisition is very much possible.
Can Non-Resident Nepalis (NRNs) Buy Property in Nepal?
The rules for Non-Resident Nepalis (NRNs) are different. NRNs can purchase property in Nepal but with certain restrictions. They can buy up to 2 ropanis of land or a house within the Kathmandu Valley.
If they prefer the Terai region, they are allowed up to 8 Kattha of land or a house, but only for personal use. This allowance provides an opportunity for Nepalis living abroad to invest back into their home country.
Will Foreigners Ever Be Allowed to Buy Property for Personal Use?
The real estate laws in Nepal remain relatively conservative, especially when it comes to foreigners owning land. Historically, the government has emphasized national identity, which has influenced the strict land ownership laws in place since the Civil Code of 2021 BS (1964 AD). According to this code, selling or transferring land to foreign nationals is considered harmful to national sovereignty. Any such transactions can be subject to government confiscation.
However, times are changing. There is increasing recognition of the economic potential tied to real estate investments, and discussions have been ongoing to amend these laws.
The formation of a stable government has led to optimism that policies around foreign ownership of property could evolve in the future. So while there is no guarantee, the possibility that foreigners will one day be able to own personal property in Nepal is not far-fetched.
Final Thoughts: Can a Foreigner Buy Property in Nepal?
To summarize, can foreigners buy property in Nepal? It depends. Foreigners cannot buy residential property for personal use, but they can acquire commercial property through a registered business. Non-Resident Nepalis have a bit more leeway with personal property ownership, but even they are subject to limits. While the laws may seem rigid now, there is hope that they will change in the coming years.
If you’re a foreign entrepreneur or an NRN looking to invest in property in Nepal, explore our listings or reach out to us. We’re here to help you navigate the process and find the perfect property for your needs.
Recommended reading: Top 5 Mistakes to Avoid When Buying Property in Nepal
