Biratnagar

Salary from a foreign employer or fees from foreign clients

Taxed1%–29% progressive for residents; 25% flat for non-residents; a final 5% for qualifying foreign-currency service income

Payments for employment or services are Nepali-source when the work is done in Nepal, wherever the payment is made (section 67(6)(jha)(1)), and non-residents are taxed on Nepali-source income (section 6), so working remotely from Nepal is taxable from the first day, not just after 183 days. A non-resident individual pays a flat 25% on that income with no allowances (Schedule 1, section 1(8)); as a resident you pay the progressive scale: from the 2083/84 income year (from mid-July 2026) 1% up to NPR 1,000,000, 10% to NPR 1,500,000, 20% to NPR 2,500,000, 27% to NPR 4,000,000 and 29% above, with one scale for everyone (separate couple bands were abolished by the Finance Act 2083). The 1% band (the social security tax) applies to employment income and is not charged on pension income, on taxpayers with a registered sole proprietorship, or on people who contribute to the Social Security Fund. A salary from a foreign employer has no Nepali withholding, so you register for a PAN and pay and file yourself. Freelancers get a better deal: a resident individual not running a business who is paid in foreign currency through a bank or money transfer company for software or similar electronic services, consulting services provided personally, or audio-visual content uploaded to social media, has 5% withheld by the bank, and from the Finance Act 2083 that 5% is the final tax (see regimes). Registering a sole proprietorship takes you out of that 5% rule and into the normal scale. Foreign tax paid on foreign income can be credited up to the Nepali average rate (section 71). This profile did not check which countries have a tax treaty with Nepal. Immigration rules are separate: tourist visas do not allow work, and Nepal has no remote-work visa yet.

On the nomad visa

Nepal has no digital nomad visa. In May 2025 the government's economic reform action plan proposed a 5-year multiple-entry nomad visa with a 5% income tax for holders staying over 186 days, but it was never enacted; this profile could not find the plan on opmcm.gov.np, and the Department of Immigration's visa list (October 2026) has no such category. The 2026/27 budget promised legal provisions to let people work from Nepal for foreign employers and a new immigration bill. Today the options are a tourist visa (at most 150 days per calendar year, work not allowed) or, for people aged 60 or over with US$20,000 a year of income, a residential visa (US$1,200 a year); residents are taxed on worldwide income.

Dividends, interest, gains, rent and pensions from abroad

Taxed1%–29% progressive on foreign dividends, interest, rent and pensions; capital gains 7.5%–10%

Residents are taxed on investment income 'wherever the source' (section 6). Foreign dividends, interest, rent and pensions are added to your other income and taxed on the 1%–29% scale, with a credit for foreign tax up to the Nepali average rate (section 71). Residents with pension income deduct a further 25% of the first band (NPR 250,000) before tax, subject to a ceiling set by regulation (Schedule 1, section 1(9ka)). Gains on non-business assets are taxed separately: from the Finance Act 2083, 7.5% on Nepal Stock Exchange listed shares held more than 365 days and 10% if held 365 days or less (a final withholding unless you choose to file), 7.5% on land and buildings held 5 years or more and 10% if held less (a final tax collected at registration), and 10% on other gains (Schedule 1, section 1(4)). This profile reads that 10% as covering gains on foreign shares and other securities, but found no IRD guidance on foreign assets or crypto-assets. Nepali investments: dividends from Nepali companies bear a final 5% withholding, and bank and listed-company interest paid to individuals a final 6% (sections 88 and 92).

Net wealth and inheritance

No wealth taxNo inheritance tax

Nepal has no net wealth tax and no inheritance, estate or gift tax. Gifts, bequests and inheritances are exempt from income tax unless they are really pay or business income (Income Tax Act section 10(cha)). The Finance Act 2083 also stopped a death from triggering the change-of-ownership rule for entities (section 57). Land and buildings: municipalities levy their own property and rent taxes, and provinces set registration fees on property transfers; this profile did not check those rates. When an individual sells a non-business home or land, the land revenue office collects the 7.5% or 10% capital gains tax at registration.

Tax resident after

183 days a year

Top income tax rate

29%

When you become tax resident

An individual is resident for an income year (Shrawan to Ashadh, about mid-July to mid-July) if their normal place of abode is in Nepal, or if they are present in Nepal for 183 days or more in any continuous 365-day period (Income Tax Act 2058, section 2(kanga)). Because the test is any 365 days, a stay that straddles two income years can make you resident in both. The Act does not define 'normal place of abode', so someone who settles on a long-stay visa with a home may be resident before day 183; this profile found no IRD guidance on that. Tourist visas are capped at 150 days per calendar year (January to December), so a tourist cannot reach 183 days within one calendar year, but can within a 365-day window that spans two calendar years. Tourist visas do not permit work.

Top income tax rate

29% on taxable income above NPR 4,000,000 (27% plus a 2-point additional tax) from the 2083/84 income year, which began in mid-July 2026; the same in Kathmandu and the rest of Nepal, as there is no provincial or municipal income tax. Until then the top rate was 39% above NPR 5,000,000. Non-residents pay a flat 25%; qualifying foreign-currency freelance income of residents pays 5%.