Non-Resident Nepalis (NRNs) hold a unique legal standing in Nepal’s property landscape. Whether you live in the United States, Australia, the United Kingdom, or any other country, you may still own property in Nepal — and you have the right to gift that property to your relatives under Nepalese law.
The legal right of NRNs to own, transfer, and gift immovable property in Nepal is governed by several key statutes, including:
- The Non-Resident Nepali Act, 2064 (2008)
- The National Civil (Code) Act, 2017 (Muluki Dewani Sanhita)
- The Land (Survey and Measurement) Act, 2019
- The Registration Act, 2034 (1977)
- The Foreign Exchange Regulation Act, 2019
- The Land Revenue Act, 2034 (1977)
Understanding these laws is critical before initiating any property gift transaction. This guide walks you through the entire process clearly, step by step, so you can gift your property confidently and legally.
What Is a Property Gift (Daanpatra) Under Nepali Law?
Legal Definition of Property Gift
Under the National Civil Code Act, 2017, a property gift — locally called “Daanpatra” (दानपत्र) — is a voluntary, unconditional transfer of ownership of immovable or movable property from one person (the donor) to another (the recipient or donee), without any monetary exchange.
This is different from a sale deed. In a gift deed, no consideration or payment is required. The donor voluntarily gives the property out of love, affection, or charity to a relative or any eligible person.
Key elements of a valid property gift under Nepali law include:
- The donor must be the legal owner of the property
- The gift must be made voluntarily, without coercion
- The recipient must accept the gift
- The gift must be registered at the concerned Land Revenue Office
- The donor must be mentally sound and of legal age (18 years or above)
Who Qualifies as an NRN Under Nepali Law?
The Non-Resident Nepali Act, 2064 defines an NRN as a Nepali citizen or a person of Nepali origin who holds a foreign citizenship but has obtained NRN status through the NRN Association or the Government of Nepal.
NRNs are permitted to own residential and business property in Nepal. However, they are subject to specific regulations regarding the purchase, transfer, and gifting of immovable property — especially when it involves transactions with relatives who are resident Nepali citizens.
Can NRNs Gift Property to Relatives in Nepal?
Legal Permissibility of NRN Property Gift
Yes — NRNs can legally gift property to their relatives in Nepal. The National Civil Code, 2017 and the NRN Act, 2064 together allow NRNs to transfer property through a registered gift deed. However, certain conditions must be satisfied.
According to Section 185 and related provisions of the Muluki Dewani Sanhita (Civil Code, 2017), a gift of immovable property becomes legally valid only upon registration at the Land Revenue Office (Malpot Karyalaya).
Who Are Considered “Relatives” Under Nepali Law?
Nepali law recognizes specific categories of relatives (Nata Natedar) for property transactions. These typically include:
Relationship CategoryExamplesDirect Bloodline (Sansara)Spouse, children, grandchildrenAscending LineParents, grandparentsSiblingsBrothers, sistersExtended FamilyNephews, nieces, cousins (within 7 generations)In-LawsDaughter-in-law, son-in-law
The degree of relationship matters because it affects the stamp duty rate applicable during property registration.
Tax and Stamp Duty on NRN Property Gift to Relatives
Applicable Tax Structure
One of the most important aspects of gifting property in Nepal is understanding the stamp duty and capital gains tax implications. The rates vary depending on the relationship between the donor and the recipient.
RelationshipStamp Duty RateBetween husband and wife1% of property valueBetween parents and children1.5% of property valueBetween siblings2% of property valueBetween other relatives3%–5% of property valueBetween non-relatives5%–7% of property value
Note: These rates are based on Land Revenue Department guidelines and may vary by municipality or district. Always confirm the current rate with the concerned Land Revenue Office.
Capital Gains Tax Considerations
Under the Income Tax Act, 2058 (2002), a property gift is generally not subject to capital gains tax if the transfer is made to an immediate blood relative. However, the recipient may be liable for tax if they sell the property in the subsequent years.
NRNs should also be aware of the double taxation avoidance agreements (DTAAs) Nepal has with some countries. These agreements may affect how the gift is treated for tax purposes in the donor’s country of residence.
Documents Required for NRN Property Gift Registration in Nepal
Complete Document Checklist
Both the donor (NRN) and the recipient (donee/relative) must prepare the following documents:
Documents Required from the NRN Donor:
DocumentPurposeNRN Card or Citizenship CertificateProof of identity and NRN statusPassport (Valid)Identity verificationProperty Ownership Certificate (Lalpurja)Proof of ownershipLand Map / Napi NakshaProperty boundary verificationTax Clearance CertificateProof of no outstanding tax duesNRN Registration CertificateIssued by NRN Association NepalPower of Attorney (if applicable)If donor is not present in NepalFour Passport-Size PhotographsRegistration requirement
Documents Required from the Donee (Recipient Relative):
DocumentPurposeCitizenship CertificateProof of Nepali citizenshipRelationship CertificateIssued by Ward Office (Wada Karyalaya)Tax Identification Number (PAN)Tax compliance requirementFour Passport-Size PhotographsRegistration requirementMarriage Certificate (if spouse)Proof of marital relationship
Step-by-Step Process for NRN Property Gift Registration in Nepal
Step 1: Verify Property Ownership and Legal Status
Before initiating the gift process, the NRN must verify the property’s legal status. This includes:
- Confirming the property is registered in the NRN’s name at the Land Revenue Office
- Checking for any encumbrances, mortgages, or legal disputes on the property
- Obtaining a four-border sketch (Char Killa) certificate
- Ensuring property tax (Malpot) is up to date
This step is essential to avoid complications during the registration process.
Step 2: Obtain a Relationship Certificate from the Ward Office
The NRN and the recipient relative must obtain a Relationship Certificate (Nata Pramaan Patra) from the local Ward Office (Wada Karyalaya). This document officially confirms the blood or family relationship between the donor and the donee.
Required at Ward Office:
- Citizenship certificate of both parties
- Birth certificates
- Marriage certificate (if applicable)
- House number/residence proof
This certificate is mandatory for availing of the reduced stamp duty rate applicable to family property transfers.
Step 3: Prepare the Gift Deed (Daanpatra)
The gift deed must be prepared by a licensed legal practitioner (advocate) or a recognized legal documentation service in Nepal. The deed must include:
- Complete details of both donor and recipient
- Detailed property description (Kitta Number, location, area)
- Declaration that the gift is voluntary and unconditional
- Statement confirming the recipient’s acceptance
- Date and place of execution
- Signatures of both parties and two witnesses
The deed must be drafted in Nepali language and must comply with the provisions of the National Civil Code, 2017 and the Registration Act, 2034.
Step 4: Submit Application at the Land Revenue Office (Malpot Karyalaya)
Both the donor and the donee (or their authorized representative with a valid Power of Attorney) must appear in person at the Land Revenue Office (Malpot Karyalaya) in the district where the property is located.
Submission checklist at Malpot Karyalaya:
- Completed application form
- Original and photocopies of all required documents
- Original property ownership certificate (Lalpurja)
- Payment receipts for stamp duty and registration fees
- Relationship certificate
- Passport and NRN card copies (attested)
If the NRN is abroad and cannot appear in person, they must provide a notarized and apostilled Power of Attorney to a trusted representative in Nepal.
Step 5: Pay Stamp Duty and Registration Charges
After document verification, the Land Revenue Office will calculate the stamp duty based on the current government valuation (Sarkari Mool) of the property and the relationship between the parties.
Payment is made at the concerned Revenue Office or through the Treasury Single Account (TSA) online system.
Estimated costs:
- Stamp duty: 1%–5% (as per relationship category)
- Registration charges: As per Land Revenue Department schedule
- Municipal tax: As applicable per local municipality
Keep all payment receipts safely as they form part of the permanent registration record.
Step 6: Receive the Updated Ownership Certificate (Lalpurja)
Once all documents are verified and payments are completed, the Land Revenue Office will:
- Register the gift deed in the official record
- Cancel the donor’s name from the ownership register
- Issue a new Lalpurja (ownership certificate) in the recipient’s name
- Update the land cadastral records
The entire registration process typically takes 1 to 5 working days, depending on the district and the completeness of the documentation.
Role of Power of Attorney in NRN Property Gift
Why NRNs Need a Power of Attorney
Most NRNs cannot travel to Nepal just to register a property gift. In such cases, a Power of Attorney (Mukhtyaarnaama) is the most practical legal solution.
A Power of Attorney allows the NRN to appoint a trusted person — such as a sibling, parent, spouse, or attorney — to handle the entire property gift registration process on their behalf.
Requirements for a Valid NRN Power of Attorney
- Must be prepared in Nepali or English
- Must be notarized in the country of the NRN’s residence
- Must be apostilled (if the country is a signatory to the Hague Apostille Convention)
- Must be authenticated by the Nepali Embassy or Consulate in the NRN’s country of residence
- Must specify the exact scope of authority granted to the representative
After arrival in Nepal, the Power of Attorney must be translated into Nepali (if in English) by a certified translator and registered at the District Administration Office (DAO) or the concerned Land Revenue Office.
Common Legal Issues in NRN Property Gift Transactions
Disputes Over Partition Rights
In joint family properties, other co-heirs may object to the gift. Under the National Civil Code, 2017, a property that has not been partitioned cannot be gifted without the consent of all co-owners.
NRNs must ensure the property is clearly partitioned and registered solely in their name before proceeding with a gift transfer.
Undeclared Encumbrances
Some properties may have undisclosed mortgages or bank loans. Gifting encumbered property without disclosing this is illegal under Nepali law and may result in legal action against both donor and recipient.
Signature Verification for NRNs Abroad
When the NRN signs documents abroad, the signature must be notarized and verified by a Nepali diplomatic mission. Unverified signatures can lead to rejection of the gift deed at the Land Revenue Office.
Practical Tips for NRNs Gifting Property in Nepal
Hire a Licensed Nepali Advocate
Always engage a registered advocate with experience in property law and NRN-related transactions. They can prepare the gift deed correctly, guide you on tax implications, and represent your interests at the Land Revenue Office.
Keep Digital Copies of All Documents
Maintain scanned copies of all property documents, NRN cards, passports, and registration certificates in a secure cloud storage system. This helps avoid delays in case of document loss.
Verify Property Records Online
The Government of Nepal’s Land Management Information System (LMIS) allows you to check property ownership details online. NRNs can verify their property records before initiating any transfer.
Inform Your Bank (If Property Is Mortgaged)
If the property has any outstanding bank loan, you must obtain a No-Objection Certificate (NOC) from the bank before gifting the property. Gifting a mortgaged property without bank approval is a legal violation.
Summary Table: NRN Property Gift Process at a Glance
StepActionResponsible Party1Verify property ownership and clear duesNRN Donor2Obtain Relationship Certificate from Ward OfficeBoth Parties3Prepare Gift Deed (Daanpatra)Licensed Advocate4Submit documents at Land Revenue OfficeNRN or PoA Holder5Pay stamp duty and registration feesNRN or PoA Holder6Receive updated LalpurjaDonee (Recipient)
Frequently Asked Questions (FAQs)
Q1. Can an NRN gift property to a non-relative in Nepal?
Yes, an NRN can gift property to a non-relative. However, the stamp duty rate applicable will be significantly higher — typically between 5% and 7% of the property’s government valuation. Legal procedures remain the same, but additional scrutiny may apply at the Land Revenue Office.
Q2. Is a gift deed (Daanpatra) reversible under Nepali law?
Under the National Civil Code, 2017, a registered gift deed is generally irrevocable once completed. However, courts may annul a gift if proved to be made under coercion, fraud, or mental incapacity. Seeking legal advice before executing the deed is strongly recommended to avoid future disputes.
Q3. What happens if the NRN donor passes away before registration is completed?
If the donor dies before registration is completed, the gift deed becomes legally invalid. The property will then be distributed according to inheritance laws under the National Civil Code. Registration must be completed during the donor’s lifetime to give the gift legal validity.
Q4. Do NRNs need to pay capital gains tax on gifted property in Nepal?
Generally, NRNs are not required to pay capital gains tax on gifted property when transferred to immediate relatives. However, the recipient may be subject to capital gains tax if they later sell the property. Tax liability depends on the nature and timeline of any subsequent sale transaction.
Q5. How long does the NRN property gift registration process take in Nepal?
The registration process typically takes between 1 and 5 working days once all documents are submitted correctly at the Land Revenue Office. Delays can occur due to incomplete documents, property disputes, or high workload at the office. Advance preparation reduces processing time considerably.
Q6. Can an NRN gift agricultural land to relatives in Nepal?
Yes, NRNs can gift agricultural land. However, the Land (Survey and Measurement) Act, 2019 and local land use regulations may impose restrictions on minimum land size after partition. Agricultural land gifted must comply with zoning regulations and the Land Use Act, 2019 applicable in that district or municipality.
Q7. Is a Power of Attorney required if the NRN is present in Nepal?
No. A Power of Attorney is only necessary when the NRN cannot appear in person at the Land Revenue Office. If the NRN is physically present in Nepal during the registration process, they can sign all documents directly without needing to delegate authority to another person through a Power of Attorney.
Q8. What is the validity period of an NRN’s Power of Attorney for property matters?
Under Nepali law, a Power of Attorney for property transactions does not have a fixed expiry unless specified in the document. However, it becomes automatically invalid upon the death of the donor or upon formal revocation. Most legal practitioners recommend specifying a validity period to maintain legal clarity and control.
Disclaimer: This article is intended for general legal information purposes only and does not constitute legal advice. Laws and regulations may be subject to change. Consult a registered Nepali advocate for advice specific to your situation.
