How to use this calculator
Enter the purchase price, sale price, any improvement/registration costs and the holding period in years. The calculator picks the 5% or 7.5% rate automatically, applies the exemptions, and shows your gain, the CGT and what you keep.
Capital gains tax on property in Nepal
When an individual sells land or a building in Nepal, tax is charged on the gain — not the whole sale price. The rate is 5% for property held more than five years and 7.5% for five years or less, which encourages longer holding. A sale of Rs 10 lakh or less, and a primary residence owned and used for ten years or more, are exempt. The tax is collected as advance tax at the Land Revenue Office (Malpot) when the transfer is registered, so buyers and sellers usually settle it as part of the deal. Companies and businesses are taxed differently, generally as business income.
Frequently asked questions
What is the capital gains tax on selling land or a house in Nepal?
For individuals, the gain on selling land or a building is taxed at 5% if the property was owned for more than 5 years, and 7.5% if owned for 5 years or less. The tax applies only to the gain (sale price minus purchase price and allowable costs).
When is a property sale exempt from capital gains tax?
A sale of Rs 10 lakh or less is exempt, and so is a primary residence that has been owned and used as a residence for 10 years or more.
How is the gain calculated?
Gain = sale price − purchase price − allowable costs such as improvement and registration expenses. If there is no gain, no capital gains tax is due.
How is the tax paid?
Capital gains tax on real estate is collected as advance tax at the Land Revenue Office (Malpot) at the time of registering the transfer.