← Guides / Nepal

Nepal Capital Gains Tax Guide (CGT)

Nepal's capital gains tax (CGT) applies to gains from the sale of shares and property at reduced rates compared to ordinary income. Shares held for less than 1 year are taxed at 10%, over 1 year at 5%. Property held for less than 5 years is taxed at 10%, over 5 years at 5%. Gains on the sale of a primary residence are fully exempt. All amounts in NPR.

Capital gains in Nepal are taxed separately from ordinary income under the Income Tax Act, 2058. The tax is administered by the Inland Revenue Department (IRD) and is generally withheld at source by the buyer or the securities depository. Gains are calculated as the difference between the sale consideration and the acquisition cost (including incidental costs of acquisition and disposal). For related guidance, see our Property Tax Guide →, Investment Income Guide →, and Crypto Tax Guide →.

CGT on Shares and Securities

  • Short-term (under 1 year) — 10%: Gains from the sale of listed shares held for less than 12 months are taxed at 10%. The holding period is calculated from the date of purchase to the date of sale.
  • Long-term (over 1 year) — 5%: Gains from listed shares held for more than 12 months are taxed at the reduced rate of 5%. This incentivises long-term investment in the Nepali stock market (NEPSE).
  • Withholding mechanism: CGT on listed shares is typically withheld at source by the stock exchange clearing house or the broker. The seller receives the net proceeds after CGT deduction. No separate tax return filing is required for share CGT unless the taxpayer wants to claim a refund or adjustment.
  • Unlisted shares: Gains on unlisted shares are taxed at the same rates (5-10%) but are self-assessed by the seller and paid directly to the IRD. Valuation of unlisted shares for CGT purposes may require the submission of audited financial statements.

CGT on Property

  • Short-term (under 5 years) — 10%: Gains from the sale of real estate held for less than 5 years are taxed at 10%. This includes land, residential buildings, and commercial property.
  • Long-term (over 5 years) — 5%: Property held for more than 5 years qualifies for the reduced 5% rate.
  • Primary residence exemption — 0%: Gains from the sale of a primary residence (owner-occupied home) are fully exempt from CGT, provided the property was used as the main home. Only one primary residence per family may qualify at a time.
  • Calculation: Gain = Sale price − Acquisition cost − Cost of improvements − Incidental costs (registration, broker fees, legal fees). Indexation for inflation is not available — gains are calculated on a nominal basis.

Exemptions and Reliefs

  • Primary residence: Fully exempt as described above. No limit on the gain amount as long as it is the owner's primary residence.
  • Agricultural land: Gains from the transfer of agricultural land may be exempt under certain conditions, particularly when the land is transferred within close family members or used for subsistence farming.
  • Inherited property: The cost of acquisition for inherited property is the cost at which the deceased acquired it (step-up in basis is not available in Nepal). The holding period includes the deceased's holding period.

For property transfer tax and annual land tax, see our Property Tax Guide →. For CGT on crypto assets, see our Crypto Tax Guide →.

Related Guides

Thailand Tax Residency Guide (180-Day Rule, RD Certificate 2026)Thailand tax residency — the 180-day presence test in a calendar year, the residence certificate from the Revenue Department, the absence of a domicile concept for tax purposes, and the permanent estaCôte d'Ivoire Wealth Tax Guide 2026 — No Annual Wealth Tax, Taxe Foncière as Proxywealth taxation in Côte d'Ivoire. Côte d'Ivoire does not impose an annual net wealth tax. The Taxe Foncière (annual property tax at 0.5%) serves as a proxy wealth tax on real estate. No net worth tax,Colombia Property Tax Guide 2026 — ICA (Predial) 0.5–3.5%, CGT Included in IIT, Primary Residence Exemptionproperty taxes in Colombia. Predial (ICA — Impuesto Predial) at 0.5–3.5% of cadastral value varying by municipality. Capital gains on property included in IIT at progressive rates 10–39%. Primary resiAustralia Amending Your Tax Return Guide (Correcting Errors, Time Limits, Amendment Process, Voluntary Disclosures)amending your Australian tax return — the correction process for the errors, the time limits for the amendments, the voluntary disclosure rules, the penalties for the incorrect returns.Chad Wealth Tax Guide 2026 — Property Holdings, Net Wealth, Local Taxeswealth taxes in Chad. Annual property tax on real estate holdings, local taxes on property, and wealth transfer taxes. Planning strategies for 2026.Armenia Personal Tax Guide 2026 — Flat 20% IIT, No Personal AllowanceArmenian personal income tax (IIT). Flat 20% rate on all income. No personal allowance. Microbusiness 0% tax for turnover under AMD 24M. Resident and non-resident taxation for 2026.
Browse all guides →