Land Sale Capital Gains Tax Nepal FY 2083/84

📅 Which fiscal year is this? Nepal’s current fiscal year is FY 2083/84, which began on Shrawan 1, 2083 (17 July 2026). Tax rates change with each Finance Act, and a great many Nepali tax pages online still display older figures. Every rate below states the year it belongs to — and where we could only verify an earlier year, we say so instead of pretending otherwise.

Selling land or a house in Nepal triggers capital gains tax collected at the Land Revenue Office when the transfer is registered. The rates rose this year, and there is one exemption that saves some sellers the tax entirely — which many do not know they qualify for.

The Rates for FY 2083/84

Seller	Ownership period	FY 2083/84	Was
Individual	Owned more than 5 years	7.5%	5%
Individual	Owned 5 years or less	10%	7.5%
Entity or company	Any	1.5% of sale value	1.5% — no change
Involuntary disposal (government compulsory acquisition)	Any	2.5%	5% or 7.5%

Note the entity rate is on sale value, not gain. A company selling land pays 1.5% of the whole sale amount regardless of whether it made a profit — a fundamentally different calculation from the individual rates, which apply to the gain only.

A new concession worth knowing: where the disposal is involuntary — land compulsorily acquired by the government — the rate is now 2.5%, down from 5% or 7.5%. If your land is being acquired for a public project, this applies to you.

Two Exemptions

🏠 The 10-year residence exemption

A building owned AND resided in for more than 10 years falls outside the definition of a non-business chargeable asset — and is therefore not taxable on disposal. Both conditions must hold: ownership and residence.

💰 The small-value exclusion

Land, or land and building, disposed of for proceeds of less than Rs 10,00,000 is outside the chargeable-asset definition.

⚠ The Rs 10 lakh figure is often quoted wrongly as Rs 1 crore. It is ten lakh, not one crore — a factor of ten. We had the higher figure in our own working assumptions before checking, and it is wrong. If you are relying on a value-based exemption for a property worth tens of lakhs, it does not apply.

The residence exemption is the one people miss. A family home lived in for over a decade can be sold without this tax. If you are approaching ten years, that timing is worth planning around — and if you have already passed it, make sure the Land Revenue Office knows before you register the transfer.

Who Collects It, and When

The tax is withheld by the Land Revenue Office (मालपोत) on the sale amount at the time of registration. You do not calculate and remit it separately — it comes out of the transaction as it completes.

The buyer’s cost is separate and we are not going to invent a number for it. The land registration fee (मालपोत शुल्क) is paid by the buyer and is set by each local level under its own Economic Act — so there is no single national rate. Reported figures put it in the range of a few percent of the government-assessed value, with concessions for women buyers and additional local surcharges in some areas, but we could not verify any of that against a Department of Land Management or municipal source. Ask the Land Revenue Office for your area before budgeting a purchase.

One thing that raises both charges at once: the government raised minimum land valuations across much of Kathmandu Valley for FY 2083/84. Because both the capital gains withholding and the registration fee are computed on assessed value, a higher valuation increases both sides of the same transaction.

🤝 Selling or buying property and want the tax position clear first?

Tell us the ownership period, rough value and whether you have lived in it. Digital Solution will explain which rate applies and whether an exemption might — and when to involve a practitioner before you sign.

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How the Gain Is Calculated

For an individual, the tax applies to the gain — broadly the disposal proceeds less what the asset cost you. The cost base generally includes the purchase price, the registration fee you paid when buying, and the cost of improvements.

Keep the paperwork from when you bought. Every rupee you can evidence as cost reduces the taxable gain. The purchase deed, the registration fee receipt and bills for construction or major improvement are all worth holding for as long as you own the property — which in Nepal can be decades.

A Claim You Will See That We Could Not Support

Some sites describe a three-tier structure — a lower rate above five years, a middle rate for three to five years, and a higher rate under three. Our verified sources show two tiers, not three, split at the five-year mark. We are flagging the three-tier version as unverified and likely incorrect. If you encounter it, check against the Finance Act before relying on it.

Frequently Asked Questions

What is the capital gains tax on selling land in Nepal?

For an individual: 7.5% if owned more than five years, 10% if owned five years or less. Entities pay 1.5% of the sale value.

Did the rates change this year?

Yes — the individual rates rose by 2.5 percentage points for FY 2083/84, from 5% and 7.5%.

Is there any exemption?

Two. A building owned and resided in for more than ten years is outside the chargeable-asset definition, and disposals under Rs 10 lakh are excluded.

Is the exemption threshold Rs 1 crore?

No — it is Rs 10 lakh. The crore figure circulates widely and is wrong.

Who deducts the tax?

The Land Revenue Office withholds it on the sale amount at registration.

What does the buyer pay?

The registration fee, set by each local level. There is no single national rate — ask your Land Revenue Office.

What if the government acquires my land?

Involuntary disposal now attracts a reduced 2.5%.

What counts toward my cost base?

Broadly the purchase price, the registration fee you paid on purchase, and improvement costs — if you can evidence them.

Sources

Published professional tax-rate summary for FY 2083/84 on capital gains rates and the Land Revenue Office withholding.
Published professional tax fact document on the non-business chargeable asset exemptions, including the ten-year ownership and residence condition.
Reporting on the Finance Act 2083 capital gains changes.

Capital Gains Tax on Selling Land or a House in Nepal