How is the registration fee calculated in Nepal?
Registration fee is calculated as a percentage of the property value (the higher of declared sale price or government-assessed value). The percentage varies by area: 5% in Metropolitan cities, 4.5% in Sub-Metropolitan cities, 4% in Municipalities, and 2% in Rural Municipalities. Apartments have a flat 1% rate regardless of area.
Who pays registration fee and who pays capital gains tax?
The buyer pays the registration fee (stamp duty) at the time of property transfer. The seller pays the capital gains tax on profit made from the sale. Both are collected at the Land Revenue Office (Malpot) during the registration process.
What is Bagmati Savyata Kosh?
Bagmati Savyata Kosh (Bagmati Civilization Fund) is an additional 5% surcharge on the registration fee for properties located within Kathmandu Valley — covering Kathmandu, Lalitpur, and Bhaktapur districts. This charge funds heritage and infrastructure preservation in the valley.
How much discount do women get on property registration?
Women buyers receive a 25% concession on the registration fee in all urban areas (Metropolitan, Sub-Metropolitan, and Municipality) and a 30% concession in Rural Municipalities. The discount is applied to the calculated registration fee — for example, a 4% Municipality fee effectively becomes 3% (4% minus 25% of 4%) for a woman buyer. This policy is designed to encourage women's property ownership across Nepal.
When is capital gains tax exempt in Nepal?
Capital gains tax is exempt when: the property was held for 10+ years and sold for up to Rs. 10 lakh, the property is agricultural land used for farming, the transfer is between spouses or to children, or the property is inherited. The tax also doesn't apply when the total transaction is under Rs. 10 lakh.
