💰 Capital Gain Tax in Nepal (2026): A Complete, Simple & Smart Guide for Everyone
Updated: May 2025 | For Property, Shares, and More
Ever made a tidy profit selling land, a house, or company shares? If yes, then you’ve met Capital Gain Tax (CGT) — the government’s share of your earnings.
This guide breaks down what CGT is, how it’s calculated in Nepal, and how you can pay it easily — all in plain, practical language.
🧩 What Exactly Is Capital Gain Tax?
Capital Gain Tax (CGT) is the tax you pay on profit made from selling valuable assets like real estate, buildings, or company shares.
It’s charged only on the gain, not on the full sale amount.
👉 Example: If you bought land for Rs. 10 lakh and sold it for Rs. 15 lakh, your taxable gain is Rs. 5 lakh.
In Nepal, this tax is managed by the Inland Revenue Department (IRD) under the Income Tax Act, with slightly different rules depending on what you sell and how long you owned it.
🔍 Types of Capital Gains
Capital gains in Nepal are mainly of two types, depending on how long you’ve held the asset:
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Short-Term Capital Gain (STCG)
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Asset sold within 5 years (for property)
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Taxed at a higher rate
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Long-Term Capital Gain (LTCG)
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Asset held for more than 5 years
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Taxed at a lower, concessional rate
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💡 Why Paying Capital Gain Tax Matters
Paying your CGT is not just about obeying the law — it has real financial advantages:
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✅ Stay Legally Safe: Avoid penalties, audits, and legal hassles.
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✅ Build Financial Credibility: Clean tax records boost your trust with banks and government bodies.
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✅ Support National Growth: Your tax helps fund roads, schools, hospitals, and public infrastructure.
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✅ Avoid Future Issues: Proper filing today prevents fines or complications later.
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✅ Smooth Ownership Transfers: Verified tax payments make property transfers quick and transparent.
📊 How to Calculate Capital Gain Tax in Nepal
CGT calculation depends on what kind of asset you’re selling.
1️⃣ On Real Estate (Land, House, or Apartment)
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If held < 5 years: 7.5% tax on the profit
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If held ≥ 5 years: 5% tax on the profit
Formula:
Allowable Expenses include:
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Renovation or improvement costs (with proof)
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Broker commissions
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Legal or transfer fees
🧮 Tip: Use a “Real Estate CGT Calculator” to estimate your payable tax before selling your property.
2️⃣ On Shares (Listed & Unlisted)
For Individual Investors:
| Type of Share | Holding Period | Tax Rate |
|---|---|---|
| Listed (NEPSE) | Up to 365 days | 7.5% |
| Listed (NEPSE) | More than 365 days | 5% |
| Unlisted Company | Any duration | 10% |
For Institutions: Rates may differ slightly based on IRD rules.
3️⃣ On Other Assets (Bonds, Mutual Funds, etc.)
Generally, CGT on these assets ranges from 5% to 10%, depending on the type and holding period.
💳 How to Pay Capital Gain Tax in Nepal
Paying your CGT is a three-step process:
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Calculate Your Gain:
Subtract purchase price and allowable expenses from your selling price. -
File the Tax Return:
Report the gain to the Inland Revenue Department (IRD) or through your broker (for listed shares). -
Pay the Tax:
Deposit the amount via a designated bank or online payment portal.
⚠️ Note: For listed shares, brokers usually deduct CGT automatically at the time of sale (TDS).
🧾 Example: Selling Shares in Nepal
Let’s say you sold 1,000 shares of Company X:
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Buy Price: Rs. 500
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Sell Price: Rs. 600
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Holding Period: 2 years
Profit = Rs. 100 × 1,000 = Rs. 100,000
Tax (5%) = Rs. 5,000
So, you’ll receive Rs. 95,000 after CGT.
🏁 Conclusion
Capital Gain Tax in Nepal is an unavoidable part of making profits from property, shares, or investments. But when you understand how it works, it’s easy to manage and even easier to stay compliant.
👉 Always keep your purchase and sale documents safe.
👉 Consult a tax expert if your case involves inheritance, business assets, or foreign investments.
Pay smart, stay transparent, and invest confidently.
💬 Frequently Asked Questions (FAQs)
1. Is capital gain tax applicable on inherited property?
Yes, but the gain is based on the market value during inheritance, not the original buying price.
2. How can I reduce capital gain tax legally?
Hold your asset for more than 5 years and claim valid expenses such as renovation or brokerage fees.
3. What if I sell at a loss?
No CGT is applicable when you sell below the purchase price.
4. Is capital gain tax applicable on gifts?
Usually no, unless it’s a business transaction. But tax applies if the gifted asset is later sold for profit.
5. What happens if I don’t pay CGT?
Expect penalties, interest, and possible legal action from the IRD. Always file and pay on time.
✨ Final Tip
If you regularly buy and sell property or shares, bookmark this guide or use a Capital Gain Tax Calculator Nepal to keep your numbers clear and avoid surprises later.
Read more: How to Open a Demat Account in Nepal: Step-by-Step Guide