Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government has introduced a new regulation mandating that all real estate transactions worth over NPR 30 million in Nepal’s six metropolitan cities and eleven sub-metropolitan cities must now be conducted through registered companies, not individuals.
According to the Ministry of Land Management, Cooperatives, and Poverty Alleviation, the decision was enforced by amending Sections 26Ka and 26Kha of the Land Revenue Act, 2034 (1977). The new provision has been officially implemented in all metropolitan and sub-metropolitan areas, including Kathmandu Metropolitan City and Dharan Sub-Metropolitan City, marking a major step toward regulating high-value property transactions.
Ministry’s assistant spokesperson Damodar Wagle said the policy aims to make land and housing transactions more transparent, accountable, and structured. “The government has taken this step to systematically channel large-scale land transactions through legally registered companies, ensuring traceability and tax compliance,” he stated.
Wagle further added that while the new rule currently applies only to metropolises and sub-metropolises, it will gradually be extended nationwide in the coming phases. The government’s long-term goal is to bring all major land dealings under a formal business registration and regulatory framework, reducing the risk of money laundering, tax evasion, and speculative real estate inflation.
Under the new rule, individuals or informal groups will no longer be allowed to buy or sell property worth more than NPR 30 million without registering a company and conducting the transaction under its name. The policy aligns with Nepal’s broader effort to formalize the real estate market, enhance financial transparency, and curb the use of unaccounted money in property dealings.
Real estate experts say the decision could have significant implications for Nepal’s booming urban property market, especially in Kathmandu, Pokhara, Biratnagar, and Lalitpur, where multimillion-rupee transactions are frequent. Some anticipate that the new rule will encourage more corporate involvement and reduce speculative land trading, while others caution it may initially slow down property sales due to procedural changes.
The Ministry has clarified that the Land Revenue Offices across the designated cities have been instructed to implement the directive immediately. Landowners and buyers involved in transactions exceeding the NPR 30 million threshold will need to submit company registration documents, ownership verification, and tax clearance certificates before completing ownership transfer.
Officials believe this initiative will also help the government improve revenue collection, prevent illicit financial flows, and integrate the real estate sector into Nepal’s formal economic and taxation system.
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