Q1: What is the new law all about?
The Government of Nepal had amended the Land Revenue Act, 2034 (“Revenue Act“), which requires that any person, firm, or company obtain a license from the Department of Land Management and Records (“Department“) before engaging in any land or real estate transaction exceeding NPR 30 million (Rs. 3 crore) in a single deal. This law is intended to regulate large-scale real estate activity, promote transparency, and curb tax evasion. Land Revenue Act provided that the threshold, licensing fees, relevant authority and applicable areas would be notified. Hence, a gazette notice was published dated 2082/06/27 BS and a further notice was issued on 2082/06/27 notifying all the relevant details. .
Q2: Who must obtain the license as per this Law?
As per the Land Revenue Act, the license requirement applies only to those engaged in the business of buying, selling, or assisting in the sale or purchase of land or houses for commercial purposes. This includes real estate developers, brokerage companies, and institutions that provide intermediary or consultancy services relating to property transactions. Private individuals who buy or sell property for personal use by mutual agreement are not required to obtain a license. Law expressly excludes non-commercial transactions between natural persons.
Q3: What is the purpose of the Amendment?
The amendment to the Land Revenue Act aims to formalize and supervise real estate dealings, ensure transparency, and secure proper tax compliance in high-value property transactions.
Q4: Which areas are covered by the Gazette Notice?
The notice applies to all areas designated as real-estate trading zones in the Nepal Gazette published on 2082/06/27 BS. These include all Metropolitan Cities and Sub-Metropolitan Cities across Nepal detailed below:
| Category | Areas Included (as per Government Notice dated 2082/06/27 BS) |
|---|---|
| Metropolitan Cities | Kathmandu, Lalitpur, Biratnagar, Birgunj, Bharatpur, Pokhara |
| Sub-Metropolitan Cities | Dharan, Itahari, Janakpurdham, Jeetpursimara, Kalaiya, Hetauda, Butwal, Ghorahi, Tulsipur, Nepalgunj, Dhangadhi |
Q5: Does the law depend on land size or only on transaction value?
The law is based solely on transaction value. Any land or real estate deal above Rs. 3 crore requires a license, regardless of the property’s size or area.
Q6: Who issues the license, and how can one apply?
Licenses are issued by the Director General of the Department of Land Management and Records under the Ministry of Land Management, Cooperatives, and Poverty Alleviation. Applications must be submitted online through www.public.dolma.gov.np. The Department issued a public notice on 2082/07/13 BS (October 30, 2025 AD), and the application deadline is within 30 days from that date (2082/08/12 BS / November 29, 2025 AD).
Q7: What documents are required for the application?
Applicants must provide the following documents as listed in Schedule-8 of the Land Revenue Regulations, 2036
- Company registration certificate and PAN/VAT registration
- Tax clearance certificate
- Board resolution authorizing the application
- Details of shareholders and directors
- Financial statements showing capacity
- Description of the intended transaction area and scope of business
Q8: What are the applicable license fees?
| Maximum Single Transaction Limit | Initial License Fee |
|---|---|
| Up to Rs. 5 crore | Rs. 500,000 |
| Above Rs. 5 crore | Rs. 1,000,000 |
Q9: What penalties apply for conducting real-estate business without a license?
| Type of Violation | Applicable Penalty |
|---|---|
| Operating a real-estate business | If the transaction/claim amount is not disclosed: Fine up to Rs. 2.5 million or imprisonment up to six months, or both. |
| without a valid license | If the transaction/claim amount is disclosed: Fine up to the total transaction or claim amount, or imprisonment up to six months, or both. |
| Violating the terms or conditions of the issued license |
If the transaction/claim amount is not disclosed: Fine up to Rs. 1 million, depending on the severity of the violation.If the transaction/claim amount is disclosed: Fine up to the total transaction or claim amount, depending on the severity of the violation. |
Q10: Are past transactions affected by the Law?
No. Transactions completed before the Gazette notice date (2082/06/27 BS) are not affected. The requirement applies only to transactions registered on or after that date.
Contact for Legal Assistance
For legal advice or compliance support regarding license application documentation, or business structuring under the new land transaction regulation, please contact:
📍Niti Partners and Associates Trade Tower, Kathmandu ✉️ [email protected] 📱 +977-9803831179