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    Can NRNs easily buy property in Nepal?

    Non-Resident Nepalis (NRNs) can indeed buy property in Nepal, but there are certain restrictions and conditions that they must meet. Here’s an overview of the process and requirements for NRNs interested in buying property in Nepal:

    Can NRNs Easily Buy Property in Nepal?

    Yes, NRNs can buy property in Nepal, but there are limits on the type and amount of property they can purchase. The process is relatively straightforward, provided that all the required documents are in order and they follow the governmentโ€™s guidelines. However, it’s essential to be aware of the limitations that exist.

    Types and Limits of Property that NRNs Can Purchase

    • Residential Property: NRNs are allowed to purchase residential property in Nepal, but there are some restrictions on the size and location:
      • Kathmandu Valley: NRNs can buy up to 2 ropanis of land (approximately 1,017 square meters).
      • Terai Region: NRNs can buy up to 8 kattha of land (approximately 2,720 square meters).
      • Other Areas: They can buy up to 8 ropanis of land in other parts of Nepal.
    • Restrictions on Agricultural Land: NRNs are not allowed to buy agricultural land without special approval. The government has restricted agricultural land purchases to prevent the misuse of such properties for non-agricultural purposes.

    Documents Required for NRNs to Purchase Property

    NRNs must provide certain documents to prove their identity and eligibility:

    1. NRN Card: NRNs must have a valid Non-Resident Nepali (NRN) Card issued by the Nepal government.
    2. Proof of Citizenship: A copy of their Nepalese citizenship certificate and documents that prove they have acquired foreign citizenship or a valid residence permit in a foreign country.
    3. Income Source: Documents showing their source of income are sometimes required to ensure compliance with laws regarding money laundering.

    Process for NRNs to Buy Property in Nepal

    1. Apply for an NRN Card: The NRN card is essential for establishing eligibility to buy property in Nepal. It is issued by the Ministry of Foreign Affairs.
    2. Property Search and Agreement: Find a suitable property and reach a preliminary agreement with the seller. Hiring a local real estate agent or attorney can facilitate the process.
    3. Verify Legal Documents: Verify the property documents, such as the land ownership certificate (Lal Purja), tax receipts, and any other legal documents. It is advisable to consult a lawyer to ensure everything is in compliance with local laws.
    4. Registration at the Land Revenue Office: Once the property deal is finalized, the property needs to be registered at the Land Revenue Office. This requires the NRN to be physically present in Nepal or provide a power of attorney to a trusted individual.
    5. Payment of Taxes: Pay the applicable registration fees and property taxes during the registration process.

    Challenges NRNs May Face While Buying Property

    1. Government Regulations and Restrictions: Although the law allows NRNs to buy property, there are still various restrictions on the type and quantity of land they can purchase, particularly related to agricultural land.
    2. Bureaucratic Delays: The process can be bureaucratic, involving several visits to government offices and document verifications, which may lead to delays.
    3. Misunderstanding of Regulations: Many NRNs may not be fully aware of current property regulations, which can lead to misunderstandings about what they are permitted to buy.

    Benefits for NRNs Buying Property in Nepal

    1. Reconnect with Homeland: Buying a home in Nepal can help NRNs stay connected to their roots, either as a vacation home or as a residence during their visits to Nepal.
    2. Investment Opportunity: Property prices in Nepal, especially in major urban areas like Kathmandu, Pokhara, and Lalitpur, have been on the rise. This makes purchasing property a potentially lucrative investment for NRNs looking for long-term capital gains.
    3. Ease of Transfer: NRNs with a valid NRN card find the property transfer process relatively straightforward, which allows them to buy or sell property with minimal complications compared to foreigners who do not hold an NRN status.

    Important Considerations for NRNs

    • Regulatory Changes: Property laws are subject to change, so it is essential for NRNs to stay informed about current regulations and restrictions.
    • Local Expertise: Hiring a local real estate expert or legal consultant will help NRNs navigate through the property purchase process smoothly. They can ensure compliance with all regulations and protect buyers from potential fraud.
    • Purpose of Purchase: NRNs should clearly define the purpose of the property, whether itโ€™s for residential, investment, or commercial use, as it can impact the type of property they are eligible to purchase.

    Conclusion

    NRNs can purchase property in Nepal, but there are restrictions on the type and amount they can own, particularly regarding agricultural land and the maximum size of properties in different regions. The process itself is relatively simple once all the documents are in place, but it is advisable to work with local professionals to navigate the regulatory environment.

    If you are an NRN looking to buy property in Nepal, Nepal Real Estate Solution can guide you through the property search, documentation, and purchase process to make it as smooth as possible. Feel free to contact us for more personalized assistance.