NRNs are the people of Nepalese origin who reside outside Nepal.

As per FITTA ACT “Non-resident Nepali (NRN)” means a person holding the NRN identity card as per Nepali law.

As per NRN Act, “Non-resident Nepali (NRN)” means a foreign citizen of Nepalese origin, including Nepali citizens living abroad. Here,

• Foreign citizen of Nepalese origin means a person whose family lineage includes a Nepali citizen and who now holds citizenship in a non-SAARC country.
• Nepali citizen residing abroad means a Nepali citizen living abroad for at least two years, excluding those in SAARC countries, diplomatic missions, or studying abroad.
• Section 7(a) of the Nepal Citizenship Act 2063 provides for non-residential Nepalese citizenship.
• Person holding NRN Citizenship is allowed to enjoy social, economic and cultural rights in Nepal but not have right to enjoy political right in Nepal.

The laws which govern Non-Resident Nepali are:

• Constitution of Nepal, 2072
• Non-Resident Nepali Act, 2064
• The National Civil Code, 2074
• Foreign Investment and Technology Transfer Act (FITTA), 2075
• Section 7(a) of Nepal Citizenship Act 2063

1. Share investment in foreign currency
2. Re-investment of dividends derived from foreign currency
3. Lease financing
4. Investment in venture capital fund
5. Securities investment through secondary market
6. Investment in purchasing shares or assets of Nepali company
7. Technology transfer 

As per the FITTA Act, the NRNs are restricted from making investment in Nepal which consists of following:


  Restricted investment sector to NRN Citizens

NRNs face restrictions on land acquisition, including limits on land type, maximum area owned, and other legal requirements. Also, NRNs are allowed to acquire land in Nepal through inheritance, gifts, purchases, or investments in specific sectors, but having limitation on the type and size of land they can own.

1. By purchasing land/property in Nepal
2. Inheritance of property by NRN in Nepal
3. By investment in Nepal

1. By purchasing property in Nepal 

NRNs are allowed to purchase a residential plot of land in different areas of Nepal, as per the NRN rules, not exceeding the following areas:

a.Required Documents for NRN for the purchase of Land/Property in Nepal

Non-Resident Nepali while purchasing the land or property of Nepal, must submit the following documents to the Ministry of Foreign Affairs;

b. Procedures of Buying Land by NRN in Nepal:

An individual of Nepali origin intending to acquire land within Nepal, they shouldn’t own any land in their name and their family’s name. NRNs can acquire land for residential or commercial purposes within specific limitations set by the Nepal Rastra Bank and other regulatory bodies.

NRNs can purchase land/property in Nepal as per NRN Act 2064, and NRN Rules, 2065:

2. Inheritance of property by NRN in Nepal

NRNA Bylaws and Civil code grant NRN citizens equal rights in inheriting and owning property as Nepali citizens. It is indeed not necessary for foreign citizens of Nepalese origin to seek approval from Government of Nepal in order to inherit ancestral property from both Nepalese and foreign citizens of Nepalese origin. In regard to the inheritance of immovable property, a foreign citizen of Nepalese origin must have an NRN citizenship or NRN card.

The Property goes to the NRN legal heir in case of a deceased foreign citizen of Nepalese origin (having NRN Card) with property in Nepal. If not, then it goes according to the prevailing law.

3. By investment in Nepal

NRN citizen having NRN citizenship can invest in sectors like tourism or industry, potentially involving land acquisition, following government-set procedures and specific requirements. Non-resident Nepalis or Foreign Companies with over 50% NRN investment can invest their earnings abroad following foreign investment laws or Nepal Government notifications for NRN investments.

NRNs or Foreign Companies must invest through licensed Nepali banks or Financial Institutions, following prevailing financial transaction laws.

a. Conditions for NRN to make foreign investment in Nepal:

For NRNs aiming to invest in Nepal, these conditions are necessary:
 

b.Procedure of foreign investment by an NRN in Nepal:

The step wise process for foreign investment by NRN in Nepal is as follows;
 

Note: Labor Law of Nepal is taken in consideration while hiring Nepali citizens for employment and ensure minimum wage compliance. 

As like NRNs have right to own and inherit any movable or immovable property in Nepal, they also enjoy the same rights and facilities as Nepalese citizens for transfer of property in Nepal. Basically, NRNs can transfer their property in major two ways as;

1. By Selling
2. By donation

1. By Selling

Unless permitted by the Government of Nepal, if a foreigner inherits or acquires a share in Nepali property, they can’t register it in their name or derive income from it.

NRNs can sell land similarly to Nepali citizens, but the NRN Department of MOFA doesn’t approve repatriating money from these sales. Nepal Rastra Bank (NRB) also doesn’t authorize repatriation of such funds. However, this income can be used within Nepal instead of sending it abroad.

a.Procedure of transferring property by NRN by selling in Nepal:

The step wise process for property transfer by selling would be as below;
 

2. By Donation or Gift

• NRNs donate their property for religious, social or any other purposes as his/her wish intending not to make any profit from those transfer ownership.
• NRNs as a love and affection grant their property to their close ones or relatives or friends as a gift and not returnable to them.

• Nepal’s tax law distinguishes between Resident and Non-Resident tax payers.
• Residents declare global income and pay taxes accordingly, while Non-Residents declare and pay taxes solely on their Nepal-based earnings.
• NRNs pay taxes in Nepal as Non-Resident tax payers on their Nepalese income.

• Yes, the individuals of Nepali origin can sell their property and take the money back to foreign land as prescribed in the prevailing law of the country.

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