Licensing mandatory for transactions above Rs 30 million
KATHMANDU, October 30: In a bid to bring Nepal’s real estate market under tighter regulation, the government has rolled out a significant policy change: anyone looking to sell property worth more than Rs 30 million will now have to do so through a licensed company.
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The Department of Land Management and Archive (DoLMA) on Thursday issued a public notice inviting applications from firms interested in obtaining these licenses—marking the official start of the government’s effort to formalize high-value property transactions.
For decades, property deals in Nepal—often involving massive sums—have operated in a largely informal space, allowing room for manipulation, tax evasion and money laundering. Authorities say the new system aims to change that.
Under the new provision, interested companies have 30 days to apply. The license fee has been set at Rs 500,000 for properties valued up to Rs 50 million and Rs 1 million for valuations above that amount.
The rule stems from the Ministry of Land Management, Cooperatives and Poverty Alleviation’s decision, published in the Nepal Gazette on October 13, in line with Section 26 (a and b) of the Land Revenue Act 1976. It mandates that all transactions exceeding Rs 30 million be handled by licensed real estate firms.
To start with, the requirement applies to six metropolitan cities—Kathmandu, Lalitpur, Biratnagar, Birgunj, Bharatpur and Pokhara—and 11 sub-metropolitan cities including Dharan, Itahari, Janakpurdham, Hetauda, Butwal, Nepalgunj and Dhangadhi, among others.
The Nepal Land and Housing Developers' Association has been lobbying for such a system for years, arguing that licensing would professionalize the sector and curb illicit cash flows. Officials believe the move will not only bring transparency but also deter the use of illegally earned money in property investment.
