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Nepal Inheritance and Gift Tax Guide

Nepal does not impose a formal inheritance tax or estate duty on the transfer of assets upon death. Gifts between close relatives (spouse, parents, children, siblings) are entirely tax-free at 0%. However, property registration upon inheritance or gift may attract nominal registration fees and stamp duty. There is no gift tax on donations to registered charitable organisations. All amounts in NPR.

Nepal's tax system does not include a standalone inheritance tax or estate duty on the value of assets passing on death. Similarly, gift tax is not levied on transfers between close family members. However, when inherited or gifted property is registered (land, buildings), nominal registration fees and stamp duty apply. When the property is later sold, capital gains tax may apply. For related guidance, see our Property Tax Guide →, Capital Gains Guide →, and Wealth Tax Guide →.

Inheritance Tax

  • No inheritance tax: Nepal does not levy any inheritance tax or estate duty on the value of assets inherited upon death. There is no filing requirement for inheritance.
  • Estate duty on registration: While there is no inheritance tax, when inherited immovable property (land, buildings) is registered in the name of the heir, nominal registration fees and stamp duty apply. These are typically lower than standard property transfer taxes and are based on the government valuation of the property.
  • Succession certificate: Heirs may need to obtain a succession certificate or probate from the court to transfer assets, especially for bank accounts and shares. The court fee is minimal.
  • Capital gains on subsequent sale: When inherited property is later sold, the heir's cost of acquisition is the original cost of the deceased (no step-up in basis). Capital gains tax at 5-10% will apply on the sale. The holding period of the deceased is added to the heir's holding period.

Gift Tax

  • Gifts between close relatives — 0%: Gifts of cash, property, or assets between close relatives (spouse, parents, children, grandchildren, siblings) are entirely exempt from gift tax. No filing or reporting is required.
  • Gifts to non-relatives: Gifts to non-relatives may be subject to tax in the hands of the recipient as income from other sources if the IRD determines the gift is disguised income. However, occasional personal gifts of modest value are generally not taxed in practice.
  • Charitable donations: Donations to registered charitable organisations in Nepal are exempt from gift tax for the donor. The donor may also claim a deduction from taxable income for donations up to prescribed limits (50% of donation, capped at 5% of total income).
  • Property registration on gift: When immovable property is transferred as a gift, nominal registration fees and stamp duty apply (lower than the standard property transfer tax rates). The transfer must be registered at the Land Revenue Office.

Succession Planning

  • Will and probate: While not tax-required, having a will is strongly recommended to ensure smooth transfer of assets. Without a will, assets are distributed according to the Nepali succession laws under the Muluki Ain (Civil Code).
  • Trusts: Nepal does not have a well-developed trust law for tax planning purposes. Trusts are relatively uncommon for inheritance planning in Nepal.
  • NRI considerations: Non-Resident Nepalis (NRNs) holding assets in Nepal should plan their succession carefully, taking into account both Nepali inheritance laws and the tax laws of their country of residence.

For annual wealth tax (property tax) on inherited assets, see our Wealth Tax Guide →. For property transfer tax, see our Property Tax Guide →.