The existing laws have recognized the NRN rights to inheritproperty in Nepal. Inherited Properties have been defined as the propertiesacquired through the means of purchase, gift, mortgage and partition.
Regarding purchasing of land, there is a limit to the amountof land that you are entitled to purchase as a foreign citizen of NepaliOrigin. The law has recognized the following limit of land.
| S.No | Place of Land Area |
| 1. Kathmandu Valley | 2 (Two Ropani) |
| 2. Municipalities of the Terai District | 8 (Eight) Katha |
| 3. Other Municipalities except in Kathmandu Valley and Terai District | 4 (Four Ropani) |
| 4. Village Development Committees of the Terai District | 1 (One) Bigha |
| 5. Other than the places mentioned above | 10 (Ten) Ropani |
There are various methods of land ownership. We are givingyou the brief overview of them so that you as an NRN is going to avail throughthese provisions if you are going to purchase land in Kathmandu or in any other places of Nepal.
Land Inheritance
The inheritance of land basically means you are going toinherit the land belonging to your ancestors. Foreign citizens are required totake permission of Government of Nepal to have land inheritance. However, ifyou are a foreigner of Nepalese origin and possess the NRN citizenship ofNepal, you are not entitled to take any permission from any authorities inorder to have ownership of your ancestral property.
Investment on Land
As like any other foreign investors, NRNs are also not permitted tomake investment in the land of Nepal. The relevant law for making theinvestment is FITTA 2019. Real estate has not been classified as industry underIndustrial Enterprises Act 2076. That is the reason why NRNs are not entitled toinvest in Land of Nepal professionally.
By virtue of Mortgage
The laws have allowed the NRNs to inherit properties throughmortgage in Nepal. You can do mortgage to any immovable or movable propertiesas an NRN in Nepal. Regarding Land, there are two ways to do mortgage, namedMortgage without possession( Dristibandhaki ) and Mortgage with possession( BhogBandhaki). Let’s see them in detail below.
Mortgage with Possession ( Bhog Bandhak )
In this type of possession, a NRN can act both as a debtoror a creditor. If you have a land and want money, you will transfer theownership of the land to another person. The creditor will enjoy thepossession. It is not required to pay any charge, interest or fee to thecreditor. The amount of time that such a property can be mortgaged is similarfor NRN as for Nepalese citizen, i.e. 10 years.
If you are a NRN citizen of Nepal, you have to take permissionfrom the Ministry of Foreign Affairs. The secretary of MOFA will grant you thepermission after enquiry. If you are a creditor, you will be obtaining the bluecovered land owner certificate.
Mortgage without Possession (Dristi Bandhak)
In this type of Mortgage, you will not transfer theownership of your land in return for the credit from a creditor. But you areentitled to pay fees or interest for the credit you have acquired. The maximumextendable time period of this kind of mortgage is also 10 years and initialtime period is only 5 years.
If the debtor doesn’t pay the loan, the creditor shouldtransfer the ownership of the land to him within two years of the expiration ofthe date for repayment of loan. The creditor has to apply to the relevantauthority for transferring the ownership of the land if the debtor is not ableto pay the debt within the required time.
Rules for Property Transfer by NRNs
There are two methods for NRNs to transfer their property.
By selling the property
For immovable properties like land, a deed must be filed tothe Land Revenue Office. For movable properties, deeds should not be submitted.However, movable assets such as stocks and other financial instruments likebonds are an exception to this.
By donating and gifting the property
There are two kinds ofdonations or gift- a donation to the person for religious, social, community orpublic purposes and a gift to another person as a way to show family affectionand love. Such a donation can be made such that it will only be effective afterone’s death.
In any case, if thevaluation of the donation exceeds NPR 100,000, then the deed must be executed andregistered with the relevant Land Revenue Office.
Opening of the Bank Account for Transfer of Money for Buyingand Selling of Property for NRN
For the purpose of receiving and investing on the propertiesin Nepal, A foreign citizen with a NRN card can open a foreign currency accountin Nepal. A NRN citizen can take away the money obtained in their account tothe foreign country of which they are the citizen.
FAQs
By inheritance: Foreign citizens of Nepalese origin can inherit ancestral property from both Nepalese and foreign citizens of Nepalese origin without seeking approval from Government of Nepal. Further, a foreign citizen of Nepalese origin must possess an NRN ID Card in order to inherit immovable property.
What is the property inheritance law in Nepal? ›
The Civil Code, 2017 provides with equal inheritance laws ensuring equal right to sons and daughters over the ancestral property regardless of their marital status. Hence, husband, wife, father, mother, son/s or daughter/s are considered equal coparcener over the ancestral property.
What are the provisions for transfer of ancestral property or inheritance to foreigner in Nepal? ›
Foreign citizens are required to take permission of Government of Nepal to have land inheritance. However, if you are a foreigner of Nepalese origin and possess the NRN citizenship of Nepal, you are not entitled to take any permission from any authorities in order to have ownership of your ancestral property.
Can NRN get a home loan in Nepal? ›
Home loan assists the NRNs who have been seeking to purchase plots & building, house constructions and renovation or repair of their existing homes in Nepal by fulfilling their funding needs.
Can a wife claim husband's parents property in Nepal? ›
The wife can claim and share the property that is inherited by the husband from his ancestors. According to Section 258 of the Civil Code 2074, the property in the name of two spouses is called joint property.
Can a Nepali citizen inherit property in India? ›
Yes, a person resident outside India i.e. i) an NRI ii) a PIO and iii) a foreign national of l1on-lndian origin can inherit and hold immovable property in India from a person who was resident in India.
What are the property rights of daughters in Nepal? ›
Daughters have the right to inherit property, obtain equal property as coparcener, and act as a successor to their Parents inheriting their assets and liabilities. These Property Rights are legally enforceable in the Courts of Nepal and guaranteed by Right to Property and Rights to Women of the Constitution of Nepal.
Is there inheritance tax in Nepal? ›
According to the Income Tax Act, capital gains tax is not required in Nepal if the individual inherits the property and there is no sale. However, if the heir decides to sell the property, tax on the sale proceeds must be paid.
Can unmarried daughter claim father's property in Nepal? ›
Nepali society is a patriarchal society. Son is the successor to his parental property though daughter may claim for the property right after the age of 35, if she did not marry but the son by birth preserves the rights to his parental property.
How long can NRN stay in Nepal? ›
NRN is provided a tourist visa upon arrival in Nepal. Subsequently, NRN visa can be obtained after applying for a visa extension at the Department of Immigration. The tourist visa is issued for certain number of days whereas NRN visa is issued for a maximum of 10 years.
NRN Identity Card will provide certain facilities in Nepal such as visa exemption, purchase of immovable property (land) as provided by the Act Relating to Non Resident Nepalese 2007 and Non-Resident Nepalese Regulations 2009.
Why does Nepal not allow dual citizenship? ›
Surendra Bhandari, a senior advocate, said Nepal's constitution doesn't envision dual citizenship. A non-residential citizenship is more a recognition of the people of Nepali origin rather than a citizenship with full rights.
Can NRN have bank account in Nepal? ›
The account of NRN which is opened for different foreign currency in any commercial bank of Nepal is NRN Foreign Currency Account. This type of account can be opened in US Dollar, Euro, Pound Sterling, Australian Dollar, Canadian Dollar, Japanese Yen and Chinese Yuan.
What is the benefit of being NRN? ›
If you are a Nepali citizen with NRN status, you do not need a visa to stay in Nepal and can stay indefinitely, thanks to your status. If you are a foreign national who holds NRN status, you must apply for a visa to stay in Nepal, but the visa will be free of charge.
What is the locking period of NRN? ›
Yes, every FDI is locked in at least for one from the date of investment. Further, the minimum suggested by Security Board of Nepal (SEBON) is three years.
Can a non citizen inherit property? ›
Can Noncitizens Inherit Property? One threshold question you may have is simply whether you can leave property to someone who isn't a U.S. citizen. The answer is yes; noncitizens can inherit property just as citizens can.
Can a foreign citizen own property in Nepal? ›
Only Nepali citizens can purchase land and houses in Nepal. However, there is a way you can do it. If you have a registered company (a business or industrial establishment) in Nepal, then you can purchase land and houses in the company's name.
Can non Indian citizens inherit property? ›
Q: Can an NRI inherit assets in India? A: Yes, an NRI can inherit any immovable property in India, be it residential, commercial, or agricultural, from a person resident in India or a person resident outside India.
