Nepal’s new tax proposal sparks concern among non‑resident Nepalis

KATHMANDU– The Government of Nepal is facing growing criticism from the global Nepali diaspora after discussions surfaced about a proposal to impose a 50% tax on property sold by Non‑Resident Nepalis (NRNs). The provision, reportedly included in a draft bill under review, has triggered strong objections from NRN communities worldwide.

According to the Non‑Resident Nepalis Association (NRNA), the proposed rule would require NRNs to pay half of the property’s value as tax when selling land or houses in Nepal, including ancestral property inherited from family members. NRN leaders argue that such a policy would be “unfair, discouraging, and harmful” to Nepalis living abroad who continue to invest in their home country.

NRNA representatives have urged the government to remove the provision immediately, stating that many NRNs purchased or inherited property long before acquiring foreign residency. They warn that the proposed tax could reduce investment, weaken emotional ties with Nepal, and create financial hardship for families who depend on property sales for personal or emergency needs.

Government officials have not yet confirmed whether the 50% tax will be included in the final version of the bill. The proposal is still under internal discussion and has not been passed into law. Any such change would require Cabinet approval, parliamentary debate, and formal inclusion in the Finance Act.

For now, NRNs continue to pay standard capital gains tax on property sales, as defined by existing tax laws. However, the debate has sparked widespread concern, with many calling for clearer communication from the government before moving forward with any major policy changes affecting millions of Nepalis abroad.