Investing in Nepal

This “Investing in Nepal – A Legal Guide” introduces you to Nepal's investment
regulations, and business and trading environment with focus on legal and
regulatory matters.

The information in the guide is in summary form, and is intended as an
introductory guide only. The information is accurate as at 30 January 2016,
and will be updated regularly. We aim to cover all details required by foreign
investors and multinational companies that are not usually covered by other
such guides.

It is a general guide only and is not to be relied upon. Detailed advice should
be obtained to cover a specific fact situation.

If you would like help with business activities in Nepal, please contact us.

Anjan Neupane

Tej Bahadur Katuwal

Partner and Head of Corporate


(T) +977 1 4101631

(T) +977 1 4101631



First Edition – published December 2013
Second Edition – published October 2015
Third Edition – published January 2016

Investing in Nepal

Neupane Law Associates is a leading international business and dispute
resolution law firm based in Kathmandu, Nepal. We have been advising






organizations and private individuals for over 30 years.

We are recognized as the "go to" law firm for international business and
dispute resolution. We have market-leading expertise in banking, foreign
investments, project finance, joint ventures, mergers and acquisitions,
insurance and reinsurance, and international commercial transactions. We
have represented our clients in many sophisticated international transactions
and highly complex disputes in Nepal.

Various international publications highly recommended our practice.
Chambers Asia-Pacific/Global 2016 ranks us Leading Firm ("Band-1") in Nepal











recommended by international law firms and clients” and our team with
“excellent knowledge and practice experience of business law and Nepali
legal practicalities”. Some recent awards received by the firm include
“Investment Law Firm Nepal - 2015” by ACQ Global Awards, “Overall Leading
Law Firm Nepal - 2014” by Acquisition International, and “Leading Law Firm
Nepal - 2013” by ACQ Law Awards.


Investing in Nepal

Nepal is a landlocked Himalayan nation with a population of just under 30
million. Located between India and China, two of the largest and fastest
growing economies of the world, Nepal promises tremendous investment
The Government of Nepal claims that it has adopted and continues to adopt
liberal policies. Nepal continues to attract the attention of many foreign








manufacturing, information technology, tourism, and service sectors.
Doing business in Nepal is may not be very easy for foreign investors as legal
rules are often complex and opaque, and often inaccessible to foreigners as
they are contained in the local language.
Therefore, we felt the need to publish a holistic legal guide to help foreign
investors understand the basic legal processes of investing and doing
business in Nepal. We hope that this will provide the correct information to all
investors and policy makers.


Investing in Nepal

Applicable Legal Framework
Investment in Nepal by foreign individuals and companies is regulated under
various laws and regulations. Particularly, they are:
• Foreign Investment and Technology Transfer Act 1992
• Industrial Enterprises Act 1992
• Foreign Exchange (Regulation) Act 1965
• Company Act 2006
• Investment Board Act 2013
In addition, investors also need to comply with various additional regulations
and directives prescribed by the regulatory bodies which are as follows:

Department of Industries

Investment Board

Nepal Rastra Bank (the Central Bank of Nepal)

Other regulatory bodies such as Insurance Board, Civil Aviation
Authority, Nepal Telecommunications Authority, Ministry of Environment


Investing in Nepal

Other Relevant Laws
Some of the other important laws other than directly related to investment
that investors should take into consideration of are:
• Arbitration Act 1999
• Contract Act 2000
• Customs Act 2007
• Civil Code (Muluki Ain) 1853 (revised 1962)
• Electricity Act 1992
• Environment Protection Act 1997
• Export-Import Control Act 1957
• Income Tax Act 2002
• Labour Act 1992
• Local Self Governance Act 1999
• Private Financing of Building and Operation of Infrastructure Act 2006
• Public Procurement Act 2006
• Value Added Tax Act 1996
Investors also need to be aware of the provisions of the Double Tax
Avoidance Treaties, and Investment Promotion and Protection Treaties
related to their home jurisdictions.


Investing in Nepal

Investment and Business Methods
There are several ways through which foreign companies may enter the
Nepalese market:
• Establishing a fully owned subsidiary
Foreign investors can establish a fully owned subsidiary by taking
permission from Department of Industries, Industrial Promotion Board, or
the Investment Board depending on the type of your investment.
• Establishing a joint venture company
Foreign investors can establish a fully owned subsidiary by taking
permission from Department of Industries, Industrial Promotion Board, or
the Investment Board depending on the type of investment.
• Establishing a branch office
Foreign companies undertaking business and transactions are required
to open branch office in Nepal if they are providing services from a
fixed location in Nepal for over 30 days. Recommendation from a
relevant ministry will be required to establish a branch office.
• Establishing a liaison office
Foreign companies are required to open a liaison office if they are
appointing its representative in Nepal or intend to open an office to
undertake representative activities. Generally, recommendations from
ministries are not required.
In addition to these methods investors can also undertake technology
transfer agreements (management, licensing, franchising etc) or appoint
local distributors to undertake business in Nepal.

Investing in Nepal

Required National Participation
Investors from all countries are allowed to invest in Nepal. Government of
Nepal has not discriminated against investors from any particular country.
However, foreign investors are required to partner with Nepalese investors in
some sectors such as consulting (maximum foreign shareholding can be 51%)
and aviation (maximum foreign shareholding can be 49% for domestic and
80% for international operators).
Once a Nepalese subsidiary is registered, such subsidiary is treated as a
Nepalese company. The law does not discriminate between foreign owned
and locally owned companies. However, in relation to some government
procurement, local and international tenders may occasionally require of
local and/or foreign partners from particular countries.
Companies or Individuals?
Both companies and individuals can invest in Nepal. There are no rules
discriminating or restricting natural and legal persons or major procedural
differences during investment.
Minimum Investment
Minimum investment amount for foreign companies and individuals investing
in shares of a company in Nepal has been fixed at NPR. 5,000,000 (Five Million
Nepali Rupees) which is equivalent to around USD 50,000. The investor will
have to at purchase shares equivalent to this amount or lend over this
amount. This may not apply in setting up of contact/liaison offices or branch
offices of foreign companies.

Investing in Nepal

Opening A Subsidiary
The subsidiary company of the foreign company can be opened in Nepal
under Company Act, 2006. The holding company can control the subsidiary
company by:
! By holding direct or indirect control over the formation of the board of
! By holding majority shares of the company.

Opening Procedure for Subsidiary
The steps for approval or registrations required (for general projects) are as
• Obtain foreign investment approval from Department of Industry
• If the foreign investment is of fixed assets up to five hundred million,
then approval of Department of Industry is required.
o If the foreign investment proposed more for an industry requiring
fixed assets beyond excess of two billion rupees then approval
of Industrial Promotion Board is required.
• Registration of company (private, public or branch) at Companies
Registrar Office
• Register for tax at the Tax Office
• Obtain foreign investment approval from Nepal Rastra Bank
• Register as an industry at the Department of Industry
• Complete the required environmental compliance procedures (if
required by Environmental Protection Act)


Investing in Nepal

Documents Required for New Projects
The following documents are required for approval of Joint Venture or 100%
owned subsidiaries from the Department of Industries:
• Investment Application
• Joint Venture Agreement (if applicable)
• Project Report
• Notarized company registration and constitutional documents of
foreign companies or passport copies of individuals
• Board of Director resolutions for foreign companies
• Investor Bio-Data/CV or Company Profile
• Financial Credibility Certificate (provided by a foreign bank)
• Power of Attorney for representatives

Additional documents required by Nepal Rastra Bank are:
• Investment timeline
• Commitment letter not to repatriate for at least one year of investment
• Documents providing source of funds of the investor
• Non-blacklisting certificate obtained from Credit Information Bureau


Investing in Nepal

Share Acquisitions Procedure in Existing Companies
Foreign investors may acquire already operating Nepali companies through
sale of shares, or join in as a joint venture partner through issue of new shares.
Documents required for the approval process are as follows:
• Share Purchase Agreement, Share Issue Agreement and/or Joint
Venture Agreement (as appropriate)
• Request letter of existing shareholder to sell share.
• Request letter of foreign investor to buy share.
• Relevant company/board resolutions
• Copy of Passport and CV of a foreign investor if a foreign investor is an
• Copy of the minute of board meeting regarding of foreign investor
regarding investing in Nepal through purchase of share if the investor in
a company along with certificate of incorporation and company
• Financial Credibility Certificate of the foreign investor provided by a
• Current shareholder list of a Nepalese company certified by
Company's Registrar Office.
• Auditor's Report of Nepalese company.
• Tax clearance certificate of Nepalese company.
• Authority letter form the company to sign the documents on behalf of
the company.


Investing in Nepal

After the approval procedures are complete with the Department of
Industries, the investor is also required to take Nepal Rastra Bank’s approval
and complete the deal by registering shares at the Office of the Companies
Registrar. Additional documents required by Nepal Rastra Bank are:
• Investment timeline
• Commitment letter not to repatriate for at least one year of investment
• Documents providing source of funds of the investor
• Non-blacklisting certificate obtained from Credit Information Bureau
• Document issued by a chartered accountant providing fair value
valuation of the sales being sold (regulations generally do not like to
see transactions taking place at lower than fair value and if
transactions have been undertaken below fair value, they impose a
condition regulating future sale price)

Dispute resolution relating to joint ventures or technology transfers
Industries with fixed assets investment as per Industry Registration Certificate
of up to NPR 500 millions the dispute between a foreign investor and national
investor or the industry has to be settled by mutual consent in presence of the
Department of Industries. If the dispute could not be settled by mutual
consent then such dispute shall be settled by UNCITRAL model of arbitration
which has to be held in in Kathmandu.
Freedom to choose jurisdiction and law is provided to agreements Industries
with “fixed assets” investment of above NPR 500 millions and disputes may be
settled as mentioned in the Joint Venture Agreements, Share Purchase
Agreement, Licensing Agreements, or other agreements.


Investing in Nepal

Foreign Investment and Technology Transfer Act 1992 only allows foreign
investors to invest in businesses listed as “industries” as per the Industrial
Enterprises Act 1992. The list of businesses listed as industries are listed below.
If the business you want to invest in is not included in the list below, then
special permission from the Industrial Promotion Board chaired by the Minister
of Industry is required to classify such business as an industry for the Foreign
Investment Approval to be obtained. It is of key importance that investors
structure their business wisely by choosing the correct industry or multiple
Note: this list does not apply when registering a Liaison Office or Branch
Office of Foreign Companies, and to banks and financial institutions and
insurance companies, which their own respective regulators may permit
under specific laws governing those sectors.
The Government of Nepal has classified the following as “industries”:
Manufacturing Industries

All manufacturing industries that manufactures goods from raw
materials. This includes assembly industry.

Mining Industries

Extraction and processing of all types of mines and minerals.

Energy Industries

Energy production through hydro, wind, solar, coal, natural oil gas and
other sources.

Investing in Nepal

Survey/feasibility study of energy projects

Agricultural Industries

Silk worm farming

Fruits Farming and Fruits Refinery

Livestock Farming

Dairy Industry

Poultry Farming

Fish Farming

Tea Farming and Refinery

Farming Medical Plants and Refinery

Seeds Production Vegetable Products

Mushroom, Vegetable Farming and Refinery

Tissue culture

Green House

Bee Farming

Production of Honey

Rubber Farming


Private Leased Forest


Cotton Farming, Production of seeds of Cotton

Farming of fruits and cash crops for commercial purpose

Tourism Industries

Tourist residency, motel

Hotels and Resorts


Travel Agency


Investing in Nepal


Water Rafting

Cable-car complex



Hot air ballooning

Para sailing

Golf course


Horse riding

Entertainment (Amusement) Park

Adventure Tourism

Service Industry




Consultancy Services1

Ginning and Billing




Hospital and Nursing Home

Education and Training



Construction and sale of residential homes

Telephone (cellular, mobile, paging)

Television broadcasting

Only maximum 51% investment is allowed
Only maximum stake of 49% in domestic and 80% in international airlines is allowed


Investing in Nepal

Satellite and cable television

Cloth and yarn dying

Cloth printing

Transportation of goods

Battery recharging

Security guard

Advertising designing and ad-agency


Liquid petroleum gas refilling


Documentary and television show production

Construction heavy equipment leasing and maintenance



Veterinary clinic

Diagnostic services

Operation and maintenance of buildings, roads, airport, pipelines,
sports complex, rope-way, power projects, inland clearance depo and


Packaging service

Dry cleaning

Catering (Local catering is not allowed)

Video audio recording


Internet services

Interior decoration

Investment company

Professional services such as plumbing, wiring,

Fashion design

Investing in Nepal

Ready mix concrete

Electricity installation and maintenance

Computer software

Call centre

Computer data collection, processing and designing

Business process outsourcing (BPO)

ICT value added services

Email service

Telex service

Telegraph service

Internet protocol television

Internet Telephony

Data network

Waste collection and cleaning service

Student hostel

Child care centre

Elderly care homes

Sports services

Theatre and dance

Construction (Infrastructure) Industry

Construction and operation of roads, railway, rope way, trolley-bus,








Construction, management and operation of conference centre

Construction, management and operation of water pipelines, sewage

Construction, management and operation of power houses and
transmission lines

Construction, management and operation of irrigation infrastructure

Investing in Nepal

Annex 1 of the Foreign Investment and Technology Transfer Act 2049 does
not allow investment in the following industries:

Household industries

Personal service businesses such as barber shop, beauty parlours,
tailoring, driving training

Weapons industry

Radioactive elements related industries

Buying and selling of lands and houses (except construction businesses)

Movies, films of Nepali language

Security printing

Currency and coins businesses

Retail businesses with operations in less than three countries

Beedi (Local/traditional cigarette) industry (except industries that
export more than 90%)

Internal courier service

Atomic energy

Chicken farming

Fish farming

Bee farming

Legal, accounting, engineering and consultancy business3

Local catering business

Rural tourism







trademark licensing etc) is allowed in all industries. These companies will also
be allowed to open contact/liaison offices.


Only consultancy business other than legal, accounting, engineering with up to 51% foreign
shareholder stake is allowed


Investing in Nepal

Branch Office
A foreign company can also register its branch to undertake incomeproducing activities within Nepal other than through establishment of a
subsidiary or a joint venture. Establishment of branch offices requires
recommendation from a relevant Nepal government agency or entity. A
branch office may be suitable for one off work eg. providing construction
services, government procurement, management and other similar activities.
Contact/Liaison Office
Contact/liaison office may only spend and have employees but may not
undertake “income generating activities” within Nepal. Contact office may
be appropriate for those wishing to have a point of contact for their business
within Nepal.


Investing in Nepal

Foreign Investment and Technology Transfer Act 1992 and Foreign Exchange
(Regulation) Act 1965 allows foreigners to lend money to industries and
businesses in Nepal. Regulatory permission needs to be obtained form two
institutions – Department of Industries and Nepal Rastra Bank (Central Bank of
Nepal) in order to do so. Interest, principal, fees, and other charges can be
repatriated to foreign convertible currency after approvals have been
obtained from both Department of Industries and Nepal Rastra Bank.
The Central Bank of Nepal has introduced a directive stating that it shall only
approve loan transactions with maximum interest rate of One Year LIBOR +
5.5%. Shareholder loans are capped at LIBOR + 2% and need to maintain
debt-equity ration of 60:40. Withholding tax of 15% applies on interest
payments made to foreign banks and companies that do not have a Double
Tax Avoidance Treaty with Nepal.
Security can be obtained on assets of the borrower company or the
guarantors (eg. land, houses, movable assets, shares, off-take agreements,
government licences and other assets) after the loan transaction has been
approved by the Department of Industries. Additional approvals may also be
required to register security depending on the structure of the transaction.
Security has to be registered at the local land revenue office or the Secured
Transactions Registry. Security registration charges at land revenue offices are
1% of the loan amount (the registration fee is NPR 40,000 maximum for banks
licensed by the Central Bank of Nepal). NPR 500 is charged for registration of
security at Secured Transaction Registry.


Investing in Nepal


Maximum Foreign Investment Permissible: 49 to 95 %

Regulatory Body: Civil Aviation Authority of Nepal

Foreign Investment is permissible in domestic airlines, international
airlines, flying schools and repair and maintenance work


Maximum Foreign Investment Permissible: 100%

Regulatory Body: Ministry of Tourism

Applicable Act and Policies: Tourism Policy, Tourism Act

Approval from the Department of Tourism required for operating
restaurant, hotels, and resorts

Higher Education
Medical Education

Maximum Foreign Investment Permissible: 100%

Regulatory Body: Ministry of Education

Applicable Act and Policies: Directive of Ministry of Health and






Infrastructure of Private and Non-governmental Health Institution,

Affiliation to a University has to be entered into and approval from
the Ministry of Education required.

Engineering Education/ Management Education

Maximum Foreign Investment Permissible: 100%

Regulatory Body: Ministry of Education

Investing in Nepal

Applicable Act and Policies: Technical Education Policy of Ministry
of Education

Approval is granted under the Technical Education Policy of Ministry
of Education


Maximum Foreign Investment Permissible: 100%

Regulatory Body: Department of Mines

Applicable Act and Policies:
o Department of mines and Geology (Department) Act, Mines
and Minerals Act, 2050 (1993) Mines and Minerals Regulations,
2056 (1999)
o License from the Department of Mines has to be obtained for
mining activities in Nepal

• Maximum Foreign Investment Permissible: 80% (Telephone operations)
• Regulatory Body: Nepal Telecommunication Authority,
• Ministry of Information and Communication
• Applicable Act and Policies: Telecommunication Act
• Approval of Nepal Telecommunication Authority is required to operate
services and obtain license prior to operation


Maximum Foreign Investment Permissible: 100%

Regulatory Body: Ministry of Energy/Department of Electricity

Off taker: Nepal Electricity Authority

Applicable Act and Policies: Electricity Act

Investing in Nepal

Infrastructure and Public Private Partnership

Investors can propose to the relevant ministries directly or bids may
be invited by the government. A concession agreement will be
signed by the relevant Ministry. Some concessions will be processed,
negotiated and signed by the Investment Board.

Applicable Act: Private Financing in Build and Operation of
Infrastructures, 2006.

Industries under the Jurisdiction of Investment Board

Fast Track Road, Tunnel, Railway, Ropeway, Trolley Bus

Construction of international as well as regional level airport and in
modernization and management of the running airport

Waste management and refinement plants

Chemical Fertilizer Production, Petroleum Refinery

Construction of big bridge specified by the Government of Nepal,

Bank and Financial Institution to be established in foreign investment
having more than 51% or in the establishment or operation of
Insurance or Reinsurance Company

Medical college as well as hospital or nursing home having more
than three hundred beds

Hydropower project having the capacity of Five Hundred or more
than Five Hundred Megawatt (500 or more MWs)

Establishment of Special Economic Zone, Export Promotion or
Refinement Zone, Special Industrial Zone or Information Technology

Construction Industry, Mine Industry, Tourism Industry, Air industry or
Productive Industry having fixed capital of Ten hundred million
rupees or having more than Ten hundred million rupees project cost

Concession agreement has to be signed with the Investment Board
to undertake these projects

Investing in Nepal

Real Estate Acquisitions
Real estate can be acquired without permission for the activities of the
subsidiary. Branch and liaison offices cannot purchase real estate.
Exchange Controls
Nepal implements strict foreign exchange controls. Usually, permission from
the Nepal Rastra Bank is required to remit funds abroad. However, foreign
exchange requirements are slowly becoming flexible, eg. permission is not
required to import goods through letters of credit. Regulatory permission is not
required to remit above USD 10,000 per remittance for fees, royalties,
advertising and other purposes through wire transfers.
Post-Incorporation Legal Compliance
There are various post-incorporation compliances that need to be
undertaken regularly such as (a) undertake annual filing of the company at
Office of Company Registrar; (b) approve of shareholders list, directors list
from Office of Company Registrar; (c) certificate of investment from banks
should be obtained once funds are remitted, (d) all investment and
transactions should take place through proper banking channels (amount
invested or consideration of purchase price should be deposited in the
company accounts), (e) fulfil other compliance requirements, licence
requirements depend on the industrial sector, and (f) environmental
regulations have to be complied with depending on the industry sector.
Business Visa and Work Permits
Foreign visitors other than Indian nationals need valid passports to enter
Nepal. There is a provision in the Foreign Investment Act to provide six month

Investing in Nepal

investors visa for feasibility studies, however, is not currently granted, and
investors have to use tourist visas instead.
A foreign investor or the authorized representative of such investor and their
dependent family members is provided business visa until such investment is
retained. First a six-month visa is granted and extended gradually based on
progress of the project. After the project has achieved commercial operation
or required amount has been invested, a five-year business visa may be
Foreign workers (including Indian nationals) will require work permit to work in
Nepal. Work permit can only be obtained by proving that employees of such
skill, education and experience are not available in Nepal. The process to
obtain work permit is lengthy and clearances from over 4 government
departments are required.
The foreign investor can repatriate (a) the amount received by the sale of
the share of foreign investment as a whole or any part thereof; (b) the
amount received as profit or dividend from foreign investment; (c) the
amount received as the payment of principal or interest on any foreign loan;
(d) the amount received under the agreement for the technology transfer in
such currency as set forth in the concerned agreement as approved by the
Department of Industries.
Repatriation approvals can take several months. Recommendation of the
Department of Industries and approval from Nepal Rastra Bank is needed for
the repatriation. Audit reports, resolutions, bank account statements, tax
clearance certificates, and various other documents need to be presented
for obtaining remittance approval from repatriation for dividends/profits.

Investing in Nepal


Corporate Taxation
There is a 25% tax imposed on the taxable income of any corporate institution
for any income year. However, the tax rates may vary according to the
business of the corporation. Special income tax rates apply as follows:

Type of Business

Tax Rate

Banks, financial institutions, general insurance


Entities engaged in manufacturing (except alcohol and 20%
tobacco industries)
Entities constructing and operating roads, bridges, tunnels, 20%
ropeways, flying bridges, trolley buses and trams






public 20%

infrastructure to be transferred to the government
Entities engaged in power generation, transmission or


All income earned from export of goods and services


*Please note that other special exemption or reductions are also available.
Please consult for detailed advice.


Investing in Nepal

Personal Taxation
All companies employing staff should deduct taxes for each employees at
the following rates:
Income (per annum)

Tax Rate

NPR 200,000 or less


More than NPR 200,000, less than NPR 15% of taxable income of more than

NPR 200,000

More than NPR 300,000

25% for taxable income of more than
NPR 300,000

More than NPR 2,500,000

Additional 40% on the taxable amount
calculated under 25% rate on the
taxable income of more than NPR

Tax can be deducted in the amount of 6% on payments to the provident
fund or an approved retirement fund. If a ‘natural’ person has a taxable
income of NPR 2.5 million (USD 25,000) or above, an additional tax of 40%
must to be paid for an income above NPR 2,500,000 (USD 25,000). Rates vary
by a small degree for married couples.


Investing in Nepal

Withholding Taxes

Resident entities must pay a 5% withholding tax on dividends. A
withholding tax of 5% is also levied on profits repatriated by a
permanent establishment to its parent company.

Withholding tax of 15% applies to royalties, lease, commission, interest
paid (except to Nepalese banks).

Withholding tax of 10% applies to real estate leases/rental payments
and aircraft lease payments

Withholding tax of 1.5% applies for service fees, construction or
contract fees paid to VAT registered entities

Capital Gains Tax
For corporate entities and businesses incorporated, capital gains are treated
as income and taxed at the same rate as income.
For natural persons, the tax rates are as follows:

2.5% if the ownership of disposed non-business taxable property (land
and building) is held for more than five years

5% if the ownership of disposed non-business taxable property (land
and building) is held for less than five years; and

5% on all gains in the stock market securities transactions.


Investing in Nepal

Value Added Tax (‘VAT’)
VAT is levied at a single rate of 13%. Leasing and buying/selling of real estate
are VAT-exempt. VAT is not levied on goods and services exported, which are
zero rated. Goods such as basic agricultural products, medicine, education
services, air transport, financial and insurance services are also exempt.
Tax Depreciation
Assets depreciation rates are as follows:




Buildings, structures and similar works of a permanent



Computers, data handling equipment, fixtures, office


furniture and office equipment

Automobiles, buses and minibuses



Construction and earth moving equipment and any


depreciable asset not included in another class










Intangible assets other than depreciable assets

Average rate

included in class D

according to
the useful life.


Investing in Nepal

Land Registration Tax
Land registration tax (similar to stamp duty) has to be paid when
selling/transferring land to a new owner at the following rates:
Property Type

Municipal Areas Tax

Non-municipal Area




Rs. Rs. 400

Rs. 300

10,000 or less
Property worth Rs. 10,001 – Rs. 1000

Rs. 500

Property worth Rs. 25,001 or 4.5%



Taxes on Possession of Real Estate
Municipal House Tax
The annual tax for the possession of houses in municipal areas has to be paid
to the Municipal Office. The rates are as follows:Class

Type of House

Tax Rate (per sq.


Raw bricks with mud mortar or made of wood Rs. 450


Kiln bricks/stones with mud mortar

Rs. 525


Kiln bricks/stones with cement mortar.

Rs. 575


RCC frame structure

Rs. 635


Investing in Nepal

Property Tax
Property tax is levied on the following rates in municipal areas:Property Valuation (NPR)

Tax Rate

Up to 1 million


1 million – 2 million


2 million – 3 million


3 million – 5 million


5 million – 10 million


Over 10 million


Other Taxes
Other taxes such as Customs Duty, Excise Duty and specific royalties for
power production and operation of casinos are also applicable. Customs
and excise duty refund for imported raw materials and machineries for export
oriented industries and exported goods are available under Industrial
Enterprises Act 1992.


Investing in Nepal

If you have any questions or require further information, please feel free to
contact us at