Financial Preparation

• Determine your investment budget and timeline (property + transaction costs + reserves)
• Develop a currency strategy (NPR is pegged to Indian Rupee at 1.6:1 ratio)
• Understand historical NPR/USD or NPR/CAD exchange rates and inflation trends
• Set up international wire transfer capabilities with your home bank
• Research local banking options for foreign investors (Himalayan Bank, Nepal Investment Bank)
• Evaluate tax implications in both Nepal and your home country
• Secure proof of fund sources for anti-money laundering compliance

Market Research

• Identify target regions based on investment goals (urban, tourism, commercial)
• Research locality-specific price trends and rental yields
• Follow online forums and groups for expatriates and investors in Nepal
• Subscribe to local real estate publications or research reports
• Analyze infrastructure projects and urban development plans
• Study tenant demographics and rental demand in target areas
• Plan an exploratory visit to evaluate regions and establish connections

Professional Network Development

• Connect with legal advisors specializing in foreign investment in Nepal
• Identify reputable real estate agencies with experience serving foreign clients
• Establish relationships with potential local business partners
• Research property management companies in your target market
• Find accountants familiar with international taxation issues
• Connect with your country’s embassy or consulate in Nepal
• Join business associations like Nepal-US Chamber of Commerce or similar Canadian groups

Expert Tip: Nepal’s property market has distinct seasonal patterns. Winter months (November-January) offer better visibility of Himalayan views for mountain properties but can make travel to remote areas challenging. The monsoon season (June-September) typically sees reduced transaction volumes and can obscure views, but may present negotiating advantages. Consider timing your property exploration trip during October-November (post-monsoon) or March-April (spring) for optimal conditions.

Recent Regulatory Change: As of January 2023, the minimum investment threshold for foreign investment was raised from NPR 5 million to NPR 20 million (approximately $150,000 USD), significantly increasing the entry barrier for smaller investors. The government has indicated that certain “priority sectors” may qualify for lower thresholds, but real estate development is not currently among those sectors. These regulations are subject to change, highlighting the importance of up-to-date legal advice.

Banking Setup

• Local Bank Account Options:
  • Company account: Available for registered Nepalese companies with foreign investment
  • Foreign currency accounts: Limited to business purposes with central bank approval
  • Personal accounts: Difficult for foreigners without long-term visa status
  • Banks with better foreign investor services: Nepal Investment Bank, Himalayan Bank, Nabil Bank
• Typical Requirements:
  • Company registration documents
  • Foreign Investment approval certificate
  • Tax registration (PAN) documents
  • Passport and visa details of foreign directors
  • Board resolution authorizing account opening
  • Initial deposit (varies by bank)
  • KYC documentation for all directors
• Banking Limitations:
  • Strict foreign exchange controls on capital repatriation
  • Limited international banking connections
  • Restrictions on foreign currency transactions
  • Account opening process can take 2-4 weeks
  • Digital banking services less developed than Western standards

Financing Options

Financing options for property investment in Nepal are limited for foreign investors:

1. Self-Financing:
   • Most common approach: Foreign investors typically bring 100% of required capital
   • Foreign Investment registration: Capital must be brought through banking channels with proper documentation
   • Central bank recording: Investment must be recorded with Nepal Rastra Bank to facilitate future repatriation
   • Staged investment possible: Capital can be brought in phases aligned with project milestones
2. Local Bank Loans (Limited):
   • Availability: Only for established companies with strong local track record
   • Loan-to-Value (LTV): Typically limited to 50-60% maximum
   • Interest Rates: 10-15% in Nepalese Rupees
   • Term: Usually 5-10 years maximum
   • Requirements: Extensive collateral, personal guarantees, business performance history
3. Partner Financing:
   • Joint venture with Nepalese partner contributing land portion
   • Developer financing for off-plan commercial purchases (rare but emerging)
   • Equity partnerships with local investors or investment groups
4. International Options:
   • Home equity financing from North America
   • International business loans secured against assets outside Nepal
   • Investment funds focusing on emerging markets (for larger projects)

Most foreign property investments in Nepal are cash purchases due to limited local financing options and high interest rates. Some developers of commercial properties in Kathmandu have begun offering installment payment plans, but these typically require 40-50% upfront payment and completion of the remainder during construction.

Currency Management

The Nepalese Rupee (NPR) presents unique currency considerations:

• Exchange Rate Characteristics:
  • NPR is pegged to the Indian Rupee at a rate of 1.6:1
  • Value fluctuates with INR against USD/CAD
  • Historically depreciated against USD over time
  • Foreign exchange controls limit easy conversion and expatriation
• Currency Transfer Options:
  • Wire transfers through banking channels (required for investment capital)
  • Limited availability of specialized forex services
  • Formal documentation required for all major currency movements
  • Approval process for foreign currency repatriation
• Strategic Considerations:
  • Investment capital should be documented as Foreign Direct Investment (FDI)
  • Maintain records of all currency exchanges and transfers
  • Budget for potential currency depreciation in long-term investments
  • Consider inflation (historically 6-8% annually) in investment calculations
  • Plan exit strategy accounting for potential repatriation challenges

Currency risk is a significant factor for Nepal investments. The NPR has shown long-term depreciation against Western currencies, which can erode returns when measured in USD/CAD, but can also enhance rental yields for income generated in hard currency (e.g., from expatriate tenants or tourism businesses).

Property Search Resources

• Online Property Portals:
  • HamroBazaar – Popular local classified site with property listings
  • Nepal Homes – Dedicated property portal with English interface
  • Housing Nepal – Focused on Kathmandu Valley properties
  • Real Estate Nepal – Listings for commercial and residential properties
• Real Estate Agencies:
  • Century 21 Nepal – International franchise with English-speaking agents
  • Nepal Investment & Development Consultants – Commercial focus
  • Himalayan Holidays Treks & Tours – Tourism property specialists
  • Note: Most agencies are small local operations with limited online presence
• Direct Networking:
  • Local business associations and chambers of commerce
  • Expatriate communities in major cities
  • Industry-specific connections (tourism, manufacturing, etc.)
  • University and educational institution networks
• Property Developers:
  • CE Construction – High-end apartments in Kathmandu
  • Comfort Housing – Mixed residential developments
  • Brij Group – Commercial and hospitality projects
  • Valley Homes – Residential communities in Kathmandu Valley

Property Viewing Trip Planning

For North American investors, an efficient property exploration trip is essential:

1. Pre-Trip Research:
   • Identify specific regions and property types of interest
   • Establish contacts with at least 3-5 local agents or property sources
   • Schedule meetings with legal advisors and potential business partners
   • Research local market rates to avoid “foreigner pricing”
   • Obtain necessary visas and travel documentation
2. Trip Logistics:
   • Plan for at least 2-3 weeks on the ground
   • Account for slower pace of business and potential delays
   • Consider seasonal factors (avoid monsoon season if possible)
   • Arrange reliable local transportation
   • Base yourself in a central location like Kathmandu or Pokhara
3. During Viewings:
   • Take detailed photos, videos, and notes
   • Record GPS coordinates for property boundaries
   • Ask about infrastructure reliability (water, electricity, internet)
   • Inquire about neighborhood development plans
   • Speak with neighboring property owners if possible
4. Local Support:
   • Hire a local translator/fixer if you don’t speak Nepali
   • Engage a lawyer early in the process to review potential properties
   • Consider working with a buyer’s advocate rather than seller’s agents
   • Connect with expatriates who have completed similar investments

Property Evaluation Criteria

Assess potential investments using these key criteria:

• Location Factors:
  • Accessibility and road conditions (critical in mountainous regions)
  • Proximity to essential facilities (hospitals, markets, schools)
  • Natural disaster risk (landslides, flooding, earthquake vulnerability)
  • Tourist traffic patterns (for hospitality investments)
  • View factors (Himalayan views add substantial premium)
  • Development potential of surrounding areas
• Legal Considerations:
  • Clean title history (minimum 30-year verification recommended)
  • Proper registration with local authorities
  • Land classification and usage rights (agricultural vs. residential vs. commercial)
  • Building permits and compliance with zoning regulations
  • Access rights and easements clearly documented
  • Absence of family disputes or competing claims
• Physical Attributes:
  • Topography and land gradient (flat land commands premium)
  • Soil stability and composition
  • Water sources and drainage
  • Existing structures’ condition and earthquake resilience
  • Boundary demarcation and fencing
  • Infrastructure connections (electricity, water, telecommunications)
• Investment Potential:
  • Current pricing compared to market averages
  • Historical price appreciation in the area
  • Rental demand and potential yields
  • Infrastructure improvements planned nearby
  • Comparable recent transactions
  • Development or value-add opportunities

Expert Tip: Land measurements in Nepal traditionally use a local system: 1 Ropani = 16 Annas, 1 Anna = 4 Paisa, 1 Paisa = 4 Dam. In the Terai region, measurements use Bigha, Katha, and Dhur. Always convert to square meters or square feet for clarity, and physically verify measurements as traditional documentation often contains discrepancies. GPS verification of boundaries is highly recommended as many properties lack clear physical demarcation.

Legal Due Diligence

• ✓
  Title Verification: Confirm ownership through Land Revenue Office records (minimum 30 years back)
• ✓
  Ownership Certificate (Lalpurja): Verify authenticity with government records
• ✓
  Land Survey Certificate (Napi Naksaa): Check official measurements and boundaries
• ✓
  Four Boundary Verification (Char Killa): Confirm adjoining properties and boundaries
• ✓
  Tax Payment Records: Verify all property taxes are current
• ✓
  Encumbrance Certificate: Confirm no liens, mortgages, or legal disputes
• ✓
  Municipal Records: Check zoning, permits, and local planning restrictions
• ✓
  Road Access Documentation: Verify legal right of access to the property

Physical Due Diligence

• ✓
  Property Survey: Professional verification of boundaries and measurements
• ✓
  Soil Testing: Check stability, especially in mountainous or former agricultural land
• ✓
  Environmental Assessment: Evaluate flood risk, landslide potential, water sources
• ✓
  Building Inspection: For existing structures, assess earthquake resilience and general condition
• ✓
  Infrastructure Evaluation: Test electricity, water supply, drainage, internet connectivity
• ✓
  Access Assessment: Evaluate road conditions, accessibility during monsoon season
• ✓
  Neighbor Consultation: Speak with adjacent property owners regarding boundaries and local issues

Financial & Business Due Diligence

• ✓
  Comparative Market Analysis: Verify price against recent comparable transactions
• ✓
  Development Cost Assessment: Professional estimates for construction or renovation
• ✓
  Rental Market Analysis: Verify realistic rental expectations from local agencies
• ✓
  Tax Implications: Assessment of property tax, capital gains, and business taxes
• ✓
  Currency Risk Analysis: Evaluate impact of potential NPR depreciation
• ✓
  Business Registration Verification: Confirm company can legally hold property
• ✓
  Foreign Investment Compliance: Verify investment structure meets regulatory requirements

Expert Tip: Nepal lacks a centralized electronic property registry, so title verification requires physical checks at multiple government offices. Discrepancies between different records are common. The most reliable verification comes from the Land Revenue Office (Malpot Karyalaya), but should be cross-referenced with Municipality records, Survey Department maps, and tax payment histories. Engage a lawyer experienced in foreign investment to coordinate these checks rather than relying solely on real estate agents or sellers.

Pre-Transaction Preparation

1. Property Selection: Identify suitable property meeting business needs
2. Company Setup: Complete foreign investment company registration (if applicable)
3. Due Diligence: Comprehensive legal and physical verification
4. Initial Agreement: Memorandum of Understanding with seller detailing terms
5. Approval Process: Obtain any necessary regulatory approvals for transaction

Unlike in Western markets, Nepalese property transactions typically begin with informal agreements and verbal commitments, followed by more formal documentation as the process advances. A Memorandum of Understanding (MOU) serves as an initial agreement, though it may have limited legal enforceability compared to the final deed.

Transaction Execution

1. Prepare Purchase Agreement:
   • Detailed agreement prepared by legal counsel
   • Specify all terms, conditions, and contingencies
   • Include clear remedies for non-performance
   • Verify seller has authority to execute sale
2. Finalize Purchase Price and Terms:
   • Negotiate final price based on due diligence findings
   • Structure payment schedule and method
   • Agree on responsibility for taxes and fees
   • Document any conditional elements
3. Earnest Money Deposit:
   • Typical range of 10-20% of purchase price
   • Held in lawyer’s escrow account or trusted third party
   • Clear conditions for forfeiture or return
4. Prepare Deed Transfer Documents:
   • Sale Deed (Rajinama) in Nepali language
   • Application for registration
   • Tax clearance documents
   • Municipal approval certificates
5. Deed Execution and Registration:
   • Physical presence of buyer and seller (or authorized representatives) required
   • Execution at Land Revenue Office (Malpot Karyalaya)
   • Payment of government registration fees and taxes
   • Official stamping and certification

The transaction process can take 1-3 months from agreement to completion, depending on the complexity of the property, any foreign investment approvals needed, and the efficiency of local government offices. Patience is essential, as delays are common in the administrative process.

Transaction Costs

Budget for these typical transaction expenses:

• Registration Fee:
  • 4-6% of government assessed property value
  • Varies by location (higher in urban areas)
  • Typically paid by buyer
• Capital Gains Tax:
  • Paid by seller (2.5% for individuals, 10% for companies)
  • Based on profit from sale
  • May sometimes be negotiated into purchase price
• Legal Fees:
  • 1-3% of property value for comprehensive services
  • Higher for complex foreign investment structures
  • Should include thorough due diligence services
• Company Formation Costs:
  • $2,000-5,000 USD for registration process
  • Includes government fees and professional services
• Property Valuation:
  • $500-1,500 USD depending on property complexity
  • Required for accurate tax assessment
• Land Survey Fee:
  • $300-800 USD for professional boundary verification
  • Essential to confirm actual dimensions
• Miscellaneous Government Fees:
  • Various small fees for certificates and documents
  • Budget approximately $200-500 USD

Total transaction costs typically range from 6-12% of the purchase price, excluding company formation costs if a new entity is required. These costs should be factored into your overall investment calculations.

Expert Tip: In Nepal, there’s often a significant difference between the officially declared value (for tax purposes) and the actual transaction price. This practice, while common, creates substantial legal risk for foreign investors who need properly documented investment amounts for future repatriation. North American investors should insist on full documentation of the actual purchase price through proper banking channels, even if this results in higher registration fees. The long-term protection of your investment and repatriation rights outweighs the short-term tax savings.

Administrative Tasks

• ✓
  Property Tax Registration: Register with local municipality for annual property tax
• ✓
  Utility Transfers: Transfer electricity, water, and other utilities to new owner
• ✓
  Foreign Investment Recording: Ensure investment is properly recorded with Nepal Rastra Bank
• ✓
  Property Insurance: Obtain appropriate coverage including earthquake insurance
• ✓
  Boundary Marking: Physical demarcation of property boundaries
• ✓
  Security Arrangements: Implement appropriate security for unoccupied property
• ✓
  Annual Compliance Filings: For corporate ownership structures

Regulatory Compliance

Properties in Nepal must comply with various regulations:

• Building Codes:
  • National Building Code of Nepal (NBC) compliance required
  • Earthquake resistance standards especially important
  • Municipal building bylaws vary by location
  • Seismic retrofitting may be required for older structures
• Environmental Regulations:
  • Environmental Impact Assessment (EIA) for larger developments
  • Initial Environmental Examination (IEE) for medium-sized projects
  • Special permits for developments near protected areas or water bodies
  • Waste management compliance for commercial properties
• Foreign Investment Compliance:
  • Annual reporting to Department of Industry
  • Repatriation approvals for any dividend or capital return
  • Maintenance of minimum capital requirements
  • Compliance with sectoral restrictions and conditions
• Labor Regulations:
  • Labor Act compliance for any employees
  • Social security registration and contributions
  • Work permits for any foreign staff
  • Local employment quotas for larger businesses
• Tourism Specific Regulations:
  • Tourism Industry licensure for hospitality properties
  • Nepal Tourism Board registration
  • Star-rating certification for hotels
  • Safety and hygiene compliance

Regulatory compliance requirements can vary significantly based on the property’s location, size, and intended use. Working with qualified local consultants is essential to navigate these requirements efficiently.

Record Keeping

Maintain comprehensive records for tax and legal purposes:

• Property Documents:
  • Original ownership certificate (Lalpurja)
  • Survey maps and plot diagrams
  • Registration documents and deed
  • Tax payment receipts
  • Building permits and approvals
  • Insurance policies
• Corporate Records:
  • Company registration certificates
  • Foreign investment approvals
  • Board resolutions related to property
  • Annual compliance filings
  • Tax clearance certificates
  • Audit reports
• Financial Records:
  • Capital investment documentation
  • Bank transfer records of purchase funds
  • Property valuation reports
  • Development and construction expenses
  • Ongoing maintenance costs
  • Rental income and expenses
• Administrative Records:
  • Utility connections and bills
  • Property tax assessments and payments
  • Local authority correspondence
  • Insurance claims and inspections
  • Staff employment records (if applicable)
  • Service provider contracts

Maintain duplicate records in both Nepal and your home country, with digital backups. Records should be kept in both English and Nepali where possible, especially for key legal documents. For corporate structures, a minimum 7-year records retention period is recommended to comply with various regulatory requirements.

Expert Tip: Foreign investors should create a comprehensive “Property Dossier” containing all essential documents related to their Nepal investment. Include English translations of key Nepali documents, certified by a recognized translator. Keep digital copies securely stored with cloud backups, and physical copies both in Nepal and your home country. This dossier is invaluable for demonstrating legitimate ownership, resolving any future disputes, and establishing the paper trail needed for eventual repatriation of your investment.

Nepalese Tax Obligations

• Property Tax:
  • Annual municipal tax based on property value and location
  • Rates vary from 0.15% to 0.35% of assessed value
  • Paid to local municipal government office
  • Due dates vary by municipality
• Rental Income Tax:
  • 10% flat tax on gross rental income for companies
  • Collected through TDS (Tax Deducted at Source) by the tenant
  • Annual filing required with Inland Revenue Department
  • Deductions limited compared to Western tax systems
• Capital Gains Tax:
  • For companies: 25% of net gain
  • For individuals: 2.5% of sale value or 10% of gain (higher of the two)
  • Based on difference between purchase and sale price
  • Limited inflation adjustments available
• Corporate Income Tax:
  • 25% standard rate for companies
  • Reduced rates (20%) for certain sectors or regions
  • Quarterly advance tax payments required
  • Annual tax returns due within 3 months of fiscal year end
• Value Added Tax (VAT):
  • 13% on commercial leases and services
  • Applicable for businesses exceeding NPR 5 million annual turnover
  • Monthly filing and payment required
  • Registration threshold lower for service businesses
• Dividend Withholding Tax:
  • 5% for distributions to foreign shareholders
  • Withheld at source by the Nepalese company
  • Final tax liability in Nepal for the foreign investor

Home Country Tax Obligations

Nepal has limited tax treaties with other countries. Currently, there is no comprehensive tax treaty with the United States or Canada, which can result in tax inefficiencies and potential double taxation in some scenarios. Professional tax advice from specialists familiar with both jurisdictions is essential for optimal tax planning.

Tax Planning Strategies

• Corporate Structure Optimization: Evaluate whether to hold property through Nepalese company or foreign holding structure
• Expense Documentation: Maintain meticulous records of all business-related expenses to maximize deductions
• Repatriation Planning: Structure dividend distributions strategically to minimize withholding taxes
• Lease Structure: Consider net lease arrangements where tenants bear tax burdens directly
• Reinvestment Strategies: Reinvesting profits in Nepal may defer home country taxation
• Related Party Transactions: Carefully document and price any services between related entities
• Exit Planning: Consider tax implications of different exit strategies well in advance
• Sector-Specific Incentives: Research available tax incentives for specific industries or regions

Nepal’s tax environment continues to evolve as the country seeks to attract foreign investment. Recent reforms have streamlined some processes, but compliance requirements remain complex. Regular consultation with tax professionals specialized in cross-border investment is essential to navigate this changing landscape effectively.

Expert Tip: For U.S. investors, particular attention should be paid to the potential application of Controlled Foreign Corporation (CFC) rules if you hold Nepalese property through a company structure. These rules can result in U.S. taxation of undistributed corporate earnings. Similarly, Canadian investors should be aware of Foreign Accrual Property Income (FAPI) rules. In both cases, proper structuring with professional guidance can help mitigate these potential tax inefficiencies while remaining fully compliant with both countries’ tax laws.

Selecting a Property Manager

Evaluate potential property managers using these criteria:

• Experience with Foreign Investors:
  • Understanding of foreign investors’ unique needs
  • Experience with international reporting standards
  • English language proficiency
  • Ability to navigate cross-cultural expectations
• Professional Qualifications:
  • Formal business registration
  • Professional certifications or affiliations
  • References from other foreign clients
  • Transparent fee structure
• Service Capabilities:
  • Size and training of staff
  • Geographic coverage in your property’s area
  • Technical expertise for your property type
  • Emergency response procedures
• Communication Systems:
  • Regular reporting protocols
  • Digital communication channels
  • Time zone accommodation
  • Responsiveness to inquiries
• Financial Management:
  • Transparent accounting practices
  • Ability to make international transfers
  • Record-keeping systems
  • Tax documentation procedures
• Local Network:
  • Established relationships with service providers
  • Government and regulatory connections
  • Access to quality maintenance contractors
  • Community integration

Management Agreement Essentials

Ensure your property management contract includes these key elements:

• Detailed Service Scope: Comprehensive list of included and excluded services
• Fee Structure: Clear explanation of all management fees, commissions, and additional charges
• Contract Term: Duration, renewal conditions, and termination provisions
• Performance Metrics: Specific, measurable targets for occupancy, maintenance, or financial performance
• Reporting Requirements: Frequency, format, and content of regular reports
• Maintenance Authority: Spending limits requiring owner approval
• Financial Controls: Banking arrangements, fund handling procedures, audit rights
• Staff Responsibilities: Clear delineation of manager vs. owner responsibilities
• Insurance Requirements: Necessary coverage and liability limitations
• Dispute Resolution: Process for addressing disagreements
• Language Provisions: Contract valid in both English and Nepali
• Governing Law: Jurisdiction and applicable legal framework

For properties in remote locations, consider including specific provisions for emergency situations such as natural disasters, political unrest, or health emergencies, with clear protocols for property protection and owner notification.

Expert Tip: The property management industry in Nepal is still developing, with few companies meeting international standards. For hospitality properties, consider engaging an international management company with a Nepal presence (such as Hyatt, Radisson, or Marriott’s management divisions) rather than relying solely on local operators. For residential or commercial properties, consider a hybrid approach combining a professional management company for financial and legal matters with a trusted local caretaker for day-to-day oversight, creating a redundant supervision system.

Exit Options

Exit Process

When selling your Nepal investment:

1. Pre-Sale Preparation:
   • Resolve any outstanding legal issues or disputes
   • Update all compliance and regulatory approvals
   • Complete any deferred maintenance or improvements
   • Prepare financial statements and performance history
   • Compile complete documentation package
2. Market Positioning:
   • Identify most likely buyer categories
   • Prepare professional marketing materials
   • Engage specialized brokers if appropriate
   • Set realistic price expectations based on comparables
   • Consider timing relative to seasonal factors
3. Transaction Structure:
   • Determine optimal sale structure (asset vs. shares)
   • Plan for tax implications in Nepal and home country
   • Prepare necessary legal documentation
   • Negotiate key terms and conditions
   • Structure payment terms and security
4. Regulatory Approvals:
   • Department of Industry approval for company transfers
   • Nepal Rastra Bank approval for fund repatriation
   • Local municipality clearances
   • Tax clearance certificates
   • Other sector-specific approvals as needed
5. Funds Repatriation:
   • Document original investment amounts
   • Apply for repatriation approval with central bank
   • Structure staged repatriation if necessary
   • Manage currency conversion timing
   • Ensure proper tax documentation

The exit timeline in Nepal can be significantly longer than in Western markets, often requiring 6-12 months from decision to sell until fund repatriation. Building relationships with potential future buyers throughout your ownership period can significantly improve exit options when the time comes.

Repatriation Considerations

Several factors affect the repatriation of investment funds from Nepal:

• Nepal Rastra Bank (NRB) Approval: Required for all investment capital repatriation
• Documentation Requirements: Must demonstrate original investment through proper channels
• Tax Clearance Certificate: Required to prove all tax obligations have been met
• Foreign Exchange Controls: May delay or limit large currency conversions
• Banking Relationships: Strong banking relationships facilitate smoother processes
• Dividend vs. Capital: Different approval processes for profit vs. investment repatriation
• Annual Limits: Potential annual caps on outbound transfers
• Economic Conditions: National foreign exchange reserves may impact approval timing

The repatriation process is one of the most challenging aspects of foreign investment in Nepal. Maintaining meticulous records of all capital brought into the country through official banking channels is absolutely essential. Investment through informal channels or cash transactions may be impossible to repatriate legally. Planning for this process should begin at the initial investment stage, not when exit is imminent.

Expert Tip: Consider a “strategic exit partner” approach when selling property in Nepal. Identify potential Nepalese buyers or larger companies with complementary interests early in your ownership. Cultivate these relationships throughout your investment period by involving them in aspects of your business. When ready to exit, a pre-established relationship can facilitate smoother transactions, potentially at premium valuations, compared to listing on the open market. This approach is particularly valuable for hospitality properties, where local hotel groups or travel companies may see strategic value beyond the property itself.