Nepal Home Asia Nepal Taxes and Costs Taxes on Foreigners' Real Estate Rental Income in Nepal More NP × Nepal Financial Overview Overview Income Tax et al Tax Example Taxes if Resident Buying Guide Property Inheritance Country Statistics Property Investments Key Contacts Accountants Lawyers Real Estate Agents Tax on property income in Nepal October 06, 2017 Effective Tax Rate on Rental Income Monthly Income US$1,500 US$6,000 US$12,000 Tax Rate 25% 25% 25% Click here to see a worked example Source: Global Property Guide research INDIVIDUAL TAXATION Nonresidents are taxed on their Nepalese-sourced income. Married couples may be taxed jointly or separately. INCOME TAX Income earned by nonresidents is taxed at a flat rate of 25%. RENTAL INCOME Rental income earned by nonresidents from leasing property is subject to 25% withholding tax. CAPITAL GAINS Acquisition costs and related expenses are deductible when calculating taxable capital gains. Capital gains realized from selling real property that are used in business are considered ordinary income and taxed at the standard income tax rate. CORPORATE TAXATION INCOME TAX Income and capital gains earned by corporations are taxed at a flat rate of 25%. Income-generating expenses and operating expenses are deductible when computing for the taxable income. PROPERTY TAX Urban House and Land Tax The urban house and land tax is levied on the value of the property. Depreciation is taken into account, at rates ranging from 0.05% to 1.50% per year, depending on the type of construction of the house. URBAN HOUSE AND LAND TAX TAX BASE, NPR (US$) TAX RATE Up to 1 million (US$9,804) nil 1 million – 2 million (US$19,608) NPR300 (US$3) 2 million – 3 million (US$29,412) 0.05% 3 million – 5 million (US$49,020) 0.25% 5 million – 10 million (US$98,039) 0.50% Over 10 million (US$98,039) 1.50% Source: Global Property Guide Nepal - More data and information How high are estate duties in Nepal? Comments deep | March 29, 2010 the web is worth informative but not sufficient, the latest amendments to nepalese taxation and VAT has also to be posted; provisions underlining non-business chargeable assets, depriation bases,foreign establishments and for the multinational subsidiary companies are the most requisites' Login or Register to submit a comment! In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.