Nepal expat tax 2083/84: 183-day rule and rates

Nepal taxes its residents on income from anywhere in the world, and its tax year doesn't follow the calendar. The income year runs from 1 Shrawan to the end of Ashadh in the Bikram Sambat calendar, roughly mid-July to mid-July. The year that matters now is 2083/84, which runs from mid-July 2026 to mid-July 2027.

This guide covers Nepali personal tax for people moving to or spending long periods in Nepal: the 183-day rule and how it sits alongside the 150-day tourist visa limit, the new 2083/84 rates, freelancing, crypto, investments and pensions, the Social Security Fund, treaties and the long-stay visa routes.

The key question is simple. Are you resident? A resident pays tax on worldwide income at 1% to 29%. A non-resident pays a flat 25% on income from Nepal and nothing on income from abroad.

What's changed: the Finance Act 2083 applies from the 2083/84 income year, which started in mid-July 2026. In the Budget Speech for 2026/27, the Finance Minister doubled the threshold for the 1% first band to NPR 1 million for individuals and cut the top rate by ten points, from 39% to 29%. The Budget also gave a 50% tax rebate on income from exporting services, made capital gains tax on listed Nepali shares a final withholding tax, and announced plans for legal rules that let people work from Nepal for foreign employers. Those remote-work rules are Proposed, not law.

📋 Nepal tax at a glance for 2083/84

Figures in rupees are converted at NPR 152 to US$1. Nepal Rastra Bank's reference rate on 20 October 2026 was NPR 151.59 buying and NPR 152.19 selling.

👉 Nepal Rastra Bank: foreign exchange rates

The 183-day rule and the 150-day visa

Why do two different day counts matter in Nepal? Because the visa and the tax rules count days over different periods, and the gap between them catches long-stayers.

Image 1 — the visa counts by calendar year, the tax test counts any 365 days

A tourist visa lets you stay up to 150 days in each visa year, and the visa year is the calendar year, January to December. The tax test is different. You're resident if you're in Nepal for 183 days or more in any period of 365 days in a row. That window doesn't have to line up with the calendar year or with the Nepali income year.

So you can stay within your visa limits and still become tax resident. Spend 150 days in Nepal from August to December, then come back for 40 days in January, and you've spent 190 days in Nepal within 365 days. That's over 183, so you're resident.

• Count every day. Keep a record of arrival and departure dates, not just visa stamps.

• Watch the turn of the year. The visa clock resets on 1 January. The tax clock doesn't.

👉 Department of Immigration: Nepal visa types, fees and documents

When you become tax resident in Nepal, and how you stop

Section 2 of the Income Tax Act 2058 says an individual is resident for an income year if any one of these applies:

• Normal place of abode. Your normal place of residence is in Nepal. There's no day count for this test.

• 183 days. You're in Nepal for 183 days or more in any period of 365 days in a row.

• Posted abroad by the Government of Nepal. This catches Nepali government staff working overseas.

Residents are taxed on income from Nepal and abroad, with a credit for foreign tax paid on foreign income. Non-residents are only taxed on income from Nepal, at a flat 25%.

Leaving is a matter of breaking every test. Move your home out of Nepal, and keep your visits under 183 days in any rolling 365 days. Because the window rolls, a long stay late in one year can keep you resident into the next.

Leaving also has a tax cost. Under sections 40 and 41 of the Act, just before you become non-resident you're treated as having sold your assets, other than land and buildings in Nepal, at market value. Gains on shares and other interests in companies up to that point can be taxed even though you haven't sold anything.

👉 Inland Revenue Department: Income Tax Act 2058, as amended by the Finance Act 2082 (in Nepali)

Income tax rates for 2083/84

Residents pay tax on taxable income on the scale below. Employers withhold tax from salaries every month.

Nepal income tax rates for resident individuals in 2083/84

Source: Budget Speech for 2026/27, paragraph 7(a), which doubled the first band to NPR 1 million and cut the top rate by ten points; the 39% top rate for 2082/83 is in the Income Tax Act as amended to 2082. The bands in between are in Schedule 1 of the Finance Act 2083 and the IRD's 2083/84 rate sheet, which we couldn't read in full, so check them there.

• The 1% band is a social security tax on employment income. Under the Act as amended to 2082, it isn't charged on pension income, on the income of a registered sole proprietor, or on people who contribute to the Social Security Fund or the government Pension Fund.

• Pensioners can take an extra 25% of the first band off taxable income, up to a set limit.

• Women whose only income is from employment get a 10% rebate on their tax.

• Non-residents pay a flat 25% on income from Nepal, with no bands.

👉 Inland Revenue Department: tax rates for natural persons for 2083/84 (in Nepali)

👉 Ministry of Finance: Budget Speech for 2026/27 (2083/84), paragraphs 7 and 68

👉 Nepal Law Commission: Finance Act 2083 (in Nepali)

Worked example

• You're single, resident for the whole of 2083/84 and earn US$100k a year from a Nepali employer, about NPR 15.2 million.

• Tax on the first NPR 1 million is NPR 10,000 (1%). Most of the rest falls in the 29% top band.

• Using the 2083/84 bands as reported so far, the total comes to about NPR 3.9 million, about US$25,700. Even if every rupee above NPR 1 million were taxed at 29%, it would be about NPR 4.1 million (27%).

Your income tax bill is roughly 25.7% of your salary, an approximate figure until the IRD's rate sheet confirms the middle bands. If you're enrolled in the Social Security Fund, you'd also pay 11% of your salary and skip the 1% band, which takes the all-in cost to about 36%.

Freelancing in Nepal

If you're self-employed and resident, your business profit is taxed on the same scale, after expenses. The 1% first band doesn't apply to a registered sole proprietor, so on US$100k of profit (NPR 15.2 million) you'd pay roughly NPR 3.9 million, or about 25.7% (approximate, as above).

• Small business regimes: there's a fixed tax for very small businesses and a turnover-based tax for businesses with turnover of NPR 3 million to NPR 10 million. Both are limited to income from Nepal, and the turnover tax doesn't cover consulting or expert services by doctors, engineers, auditors, lawyers, artists or consultants. Most freelancers on US$100k won't qualify.

• Foreign-currency fees: under the Act as amended to 2082, a resident who isn't running a registered business pays 5% on foreign-currency payments for software or similar electronic services, or personal consulting, provided to clients outside Nepal, and for content uploaded to social media. The bank withholds it when the money arrives, and if that's your only income you don't need to file a return. It's limited to those services, so our rating doesn't count it.

• Service exports: the 2026/27 Budget gave a 50% tax rebate on income from exporting services, mainly aimed at IT. It's sector-limited, so our rating doesn't count it.

• Social security: joining the Social Security Fund is voluntary for the self-employed.

You also need the right to work for yourself. Nepal's business visas are tied to registered investment, and no visa covers freelancing for clients abroad.

Crypto, investments and pensions

Is crypto legal in Nepal? No. Nepal Rastra Bank, the central bank, says trading Bitcoin and other cryptocurrencies isn't allowed in Nepal and is illegal. If you become resident, think carefully before holding or trading crypto, even on a foreign exchange.

On the tax side, crypto isn't one of the assets the capital gains rules list (land, buildings and interests in entities such as shares), and the IRD hasn't said how a gain would be taxed. If trading counts as a business, profits go on the 0% to 29% scale.

For other investments, residents pay tax on worldwide income:

• Capital gains: gains on shares and other interests in companies are taxed at 10%, including foreign shares. Land and buildings are taxed at 5% if held 5 years or more and 7.5% otherwise, and shares listed in Nepal at 5% if held more than 365 days and 7.5% otherwise. A main home you've owned and lived in for 10 years is outside the charge.

• Foreign dividends and interest: they aren't taxed at source in Nepal, so they're added to your income and taxed on the scale.

• Pensions: a foreign pension is taxed on the scale. The 1% band doesn't apply, and you get the extra 25% pension allowance.

Nepal has no wealth tax and no inheritance tax.

👉 Nepal Rastra Bank: is trading Bitcoin and other cryptocurrencies allowed in Nepal? (in Nepali)

👉 Nepal Law Commission: Income Tax Act 2058, Schedule 1 (gains rates and pension allowance) (in Nepali)

Social security

Nepal's Social Security Fund (SSF) runs schemes for health, maternity, accidents, disability, old age, dependants and unemployment. Under the Contribution-based Social Security Act 2074, every employer listed with the Fund must enrol its workers and pay contributions on their basic salary each month. The Act doesn't exclude foreign workers.

• Rates: rates are set by notice in the Nepal Gazette. The Act lets the Fund's board set up to 11% from workers and 20% from employers (31% in all) without the union and employer members present, and our rating assumes those rates. Contributions are on basic salary, not total pay.

• The 1% band: SSF contributors don't pay the 1% social security tax.

• Self-employed: joining is voluntary.

Ask your employer whether you'll be enrolled. Our Employees rating assumes you are.

👉 Nepal Law Commission: Contribution-based Social Security Act 2074 (in Nepali)

👉 Social Security Fund: registration and contributions

Double tax treaties

Does Nepal have double tax treaties? Yes, but only a few. Nepal has signed 11: Austria, Bangladesh, China, India, South Korea, Mauritius, Norway, Pakistan, Qatar, Sri Lanka and Thailand. In December 2025 the IRD published notice of the government's decision to terminate the Mauritius treaty. There's no treaty with the UK, the US, Australia or most of Europe.

Without a treaty, you rely on Nepal's foreign tax credit for tax paid abroad on foreign income, and on the other country's own rules. Check both sides before you move.

👉 Department of Industry: Foreign Investment in Nepal 2024, with the treaty list

👉 Inland Revenue Department: notice of the decision to terminate the Mauritius treaty (in Nepali)

Long-stay visas in Nepal

Nepal doesn't have a digital nomad visa. The Department of Immigration's main routes are:

• Tourist visa: 15, 30 or 90 days on entry (US$30, US$50 or US$125), extendable at US$3 a day, up to 150 days in a visa year (January to December).

• Residential visa: US$1,200 a year, for retirees aged 60 or more (a bank statement of US$20,000 and an income of at least US$20,000 a year), investors of at least US$100,000, and people of international repute.

• Business visa: for foreign investors and business people, with a recommendation from the Department of Industry.

• Working visa: for foreign employees, with a labour permit and a recommendation from a ministry.

The 2026/27 Budget says the government will bring in legal rules so people can work from Nepal for foreign employers, and a bill to overhaul the visa system. Both are Proposed, not law.

👉 Department of Immigration: tourist, residential, business and working visas

Who is Nepal good for?

How does Nepal compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2083/84 rules and the all-in cost including compulsory contributions, at NPR 152 to US$1.

☑️ Who is Nepal good for? Tax ratings for expats in 2083/84

Filing and deadlines

The income year ends on the last day of Ashadh, in mid-July. You'll need a Permanent Account Number (PAN) from the IRD before you file.

• Employees: if your only income is Nepali salary from one resident employer at a time, the tax your employer withholds is your final tax. Under the Act as amended to 2082, you still have to file a return if your income is over NPR 4 million.

• Everyone else: returns are due within three months of the end of the income year, so around mid-October 2027 for 2083/84, and the IRD can extend this by up to three months. Check the exact date with the IRD.

• Foreign income: if you're resident, declare it and claim a credit for foreign tax paid.

Frequently asked questions

When do I become tax resident in Nepal?

You're resident if your normal place of abode is in Nepal, or if you're in Nepal for 183 days or more in any period of 365 days in a row. The 365 days don't have to match the calendar year or the Nepali income year.

What is Nepal's tax year?

The income year runs from 1 Shrawan to the end of Ashadh in the Bikram Sambat calendar. The 2083/84 income year runs from mid-July 2026 to mid-July 2027.

What are the income tax rates in Nepal for 2083/84?

Residents pay 1% on the first NPR 1 million of employment income, then rising bands up to a top rate of 29%, down from 39% in 2082/83. Check the bands in between against the IRD's 2083/84 rate sheet. Non-residents pay a flat 25% on income from Nepal.

Does Nepal tax foreign income?

Yes, if you're resident. Residents are taxed on worldwide income, including foreign pensions, dividends and interest, with a credit for foreign tax paid. Non-residents are taxed only on income from Nepal.

Is crypto legal in Nepal?

No. Nepal Rastra Bank says trading Bitcoin and other cryptocurrencies isn't allowed in Nepal. The IRD hasn't published guidance on how crypto gains are taxed.

Does Nepal have a digital nomad visa?

No. A tourist visa allows up to 150 days in each calendar visa year. Retirees aged 60 or more can apply for a residential visa with an income of at least US$20,000 a year. The 2026/27 Budget plans rules for remote work for foreign employers, but they're not law yet.

Where to go next

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