This article will provide you all the latest legal aspects associated with Selling or Buying Land from Abroad in Nepal.
Table of Contents
Selling or Buying Land from Abroad in Nepal
The Legal Frameworks and Procedure of Selling or Buying Lands or other Forms of Property from Abroad in Nepal is complex and confusing because of Strict Legal Protocols, Lack of Concise Legal Provisions and Not-Investment Friendly Nepalese Administration.
Whether you’re an NRN looking to invest in property back home or thinking about selling land you already own, understanding the process is necessary to follow the rules and avoid any legal issues.
In this guide, we explore the details of buying or selling land in Nepal for NRNs, through the application process, legal considerations, and any limitations you need to be aware of before making any property transactions in Nepal.
Land Buying Process in Nepal
Ownership Restrictions
Non-Resident Nepalis (NRNs) seeking to purchase land in Nepal must not possess any existing land registered in their or their family’s name. This requirement aims to prevent speculative investments and ensure fair access to property ownership.
Application
Non-Resident Nepalis (NRNs) are required to submit an application to the Ministry of Foreign Affairs (MoFA) to obtain permission for land purchase in Nepal. The application must include crucial documents like the NRN identification card, foreign citizenship certificate, Lalpurja (land registration certificate), and other pertinent paperwork.
Amount of Purchasable Land
Legal provisions specify the maximum land area that Non-Resident Nepalis (NRNs) can purchase, depending on the location. For example, in the Kathmandu Valley, NRNs can buy up to two Ropanis of land, while in other areas, the allowable limit varies.
Approval and Registration
Upon receiving approval from MoFA, the land registration process can proceed. The concerned land revenue office handles the registration, issuing a blue-colored certificate as proof of ownership.
Repatriation
While NRNs can sell land in Nepal similar to Nepali citizens, repatriating the proceeds from land sales abroad is restricted. Nepal Rastra Bank (NRB) does not grant approval for repatriation, meaning the income must be utilized within Nepal.
Land Selling Process in Nepal
Compliance
NRNs must adhere to legal requirements and disclose any previously owned land to avoid complications during the sale process.
Application process
Selling land involves following the procedures outlined by the relevant authorities, including obtaining necessary approvals and completing documentation accurately.
Repatriation
NRNs should be aware that repatriating funds from land sales abroad is not permitted. However, the income generated can be utilized within Nepal for investment or other purposes.
Limitation on Land Purchase by NRNs in Nepal
Non-Resident Nepalis (NRNs) face limitations on the amount of land they can purchase in Nepal, depending on the location.
In the Kathmandu Valley, NRNs are restricted to acquiring a maximum of two Ropanis of land. In Terai district municipal areas, they can purchase up to eight Katthas, while in other district municipal areas, the limit is set at four Ropanis.
NRNs can only acquire one farm in Terai district’s rural municipality area. For areas outside these specifications, such as regions beyond urban or rural municipalities, NRNs are permitted to purchase up to ten plantations.
These restrictions aim to regulate land ownership and prevent excessive acquisition by non-residents.
Documents Required for Selling/Buying Lands in Nepal
When applying to purchase land in Nepal, applicants are required to provide comprehensive personal details. This includes basic information such as their name, surname, year of birth, nationality, and details of their foreign citizenship.
Applicants must provide their current address in the country of residence. Specific details pertaining to the Non-Resident Nepali (NRN) identity card, including the ID number and validity period, are also necessary.
Applicants must outline purchase information, including the landowner’s name, citizenship number, and specifications regarding the land or house being purchased.
The full disclosure of any prior land ownership in Nepal by the applicant or their immediate family is mandatory as part of the application process. These detailed requirements ensure transparency and adherence to legal protocols in land transactions involving NRNs.
Conclusion
The process of selling or buying land in Nepal as an NRN requires a thorough understanding of legal regulations, documentation requirements, and limitations. If one follows the prescribed procedures and seeking professional guidance when necessary, NRNs can engage in property transactions in Nepal efficiently and legally. It’s essential to remain informed about any changes in regulations or policies that may impact property ownership for NRNs in Nepal.
For swift and reliable legal services.