Buying a house or land in Nepal is a dream for many — but often, buyers are surprised by the extra costs that come up after the deal is signed. The purchase price isn’t the final amount you’ll pay. There are multiple hidden charges involved in completing the transaction and preparing the property for use.
To help you avoid unpleasant surprises, here’s a breakdown of the hidden costs you need to plan for when buying property in Nepal.
1. 🧾 Registration Fees (दर्ता शुल्क)
When you buy property, you must register it at the Malpot (Land Revenue Office). The registration fee is typically 4.5% of the total property value, but it can vary based on location and municipality.
- Example: For property worth NPR 1 crore, you’ll pay about NPR 4.5 lakhs just for registration.
🔍 Some areas may have discounted rates or progressive taxes depending on land use (agricultural, residential, commercial).
2. 🏛️ Capital Gains Tax (पूँजी लाभकर)
This tax is usually paid by the seller, but buyers often bear it indirectly during negotiation. The rate is:
- 5% if the property is held for more than 5 years
- 10% if held for less than 5 years
- 20% flat for companies selling land
💡 Always clarify whether this tax is included in the final price or if you’ll cover it separately.
3. 🧾 Stamp Duty and Notary Fees
Legal documents must be stamped and notarized. These may include:
- Sale deed agreement
- Power of Attorney
- Tax forms
🔖 Stamp duty may range from Rs. 500 to several thousand, and notary services can charge Rs. 200–1,000 per document.
4. 💼 Agent or Broker Fees
Real estate brokers or agents help find property and facilitate the deal. Their commission usually ranges between:
- 1–2% of the total property price for both buyer and seller
✅ Make sure to negotiate this in advance and confirm whether VAT is added to their charges.
5. 🏗️ Valuation Charges (for Bank Loan Buyers)
If you’re taking a home loan, banks require property valuation through certified valuers. The fee depends on property size and value.
- Typically costs between NPR 5,000 – NPR 20,000
🏦 This is non-refundable, even if your loan is not approved.
6. 🛠️ Renovation or Repair Costs
Many buyers overlook how much they’ll spend after moving in:
- Plumbing, painting, electrical works
- Flooring, furnishings, kitchen upgrades
- Gate installation or fencing
🏚️ Especially for old homes, expect to spend 2–10% of the property value on upgrades.
7. 📃 Blueprint Approval and Municipality Charges
For newly built homes or constructions under progress:
- You may need to pay charges for blueprint approvals (नक्सा पास)
- Local municipality fees can add up, especially for road connections, drainage, etc.
These are typically required to legalize the house or get the building completion certificate.
8. 🏦 Loan Processing Charges (if applicable)
Taking a home loan? Expect these extra costs:
- Loan processing fee: Around 0.5–1% of loan amount
- Insurance premium: Mandatory for many banks
- Documentation fees
💰 For a 50 lakh loan, processing can cost up to NPR 25,000–50,000
9. 🧹 Cleaning and Moving Costs
Don’t forget to budget for:
- Deep cleaning services
- Moving truck or transportation
- Labor for shifting furniture
It might not seem much, but it can cost Rs. 10,000–30,000 depending on distance and volume.
10. 🪪 PAN and VAT (For Commercial Properties)
If you’re buying commercial land or property, ensure:
- The property is VAT-compliant
- You are registered for PAN and VAT
These costs often sneak up during tax filings or re-sale of commercial properties.
✅ Final Thoughts
Buying property in Nepal is more than just paying the listed price. By being aware of these hidden costs, you can plan your finances better and avoid last-minute shocks.
✅ Final Thoughts
Buying property in Nepal is more than just paying the listed price. By being aware of these hidden costs, you can plan your finances better and avoid last-minute shocks.
📌 Checklist Recap:
- Registration and stamp fees
- Taxes and notary charges
- Brokerage fees
- Bank loan charges (if applicable)
- Municipality and blueprint approval
- Repair and post-purchase upgrades
