Tax residency in Nepal
How to become a tax resident — and how hard it is to leave.
How to become a tax resident
Typically after 183+ days of presence in a year — or any of:
- habitual (normal) place of abode is in Nepal for the income year
- present in Nepal for 183 days or more during a continuous period of 365 days that falls in whole or in part in the income year
- employee of the Government of Nepal deputed to a foreign country at any time during the income year
Nepal’s main residence routes for a foreign individual are the residential visa (including a US$100,000 industrial-investment route or a US$20,000-per-year income route) and the new digital nomad visa for remote workers, while direct citizenship-by-investment is not available.
How to break residency
easy to leaveTax residence is based on physical presence, habitual abode, or government deputation; once a person leaves Nepal so that their normal place of abode is no longer in Nepal, is not deputed abroad by the Government of Nepal, and they no longer meet the 183‑day test in any relevant 365‑day period, tax residency ceases without multi‑year tail rules or domicile‑based taxation.
“A natural person (individual) is a resident in Nepal for an income year, if s/he satisfies any of the following three conditions: - If the habitual (Normal) Place of Abode is in Nepal - If s/he is Present in Nepal for 183 days or more during a period of 365 consecutive days: - An Employee of GON deputed in Foreign Country by Government of Nepal: Income Tax Act, 2058 has made a detailed provision for resident individuals and companies. A resident person with respect to an income-year means the following: a) In respect of an individual: - whose normal place of abode is in Nepal; - who has resided in Nepal for 183 days or more during a continuous period of 365 days; or - who is deputed by the Government of Nepal to a foreign country at any time of the income year.” — Inland Revenue Department / Income Tax Act, 2058 (as summarized by Baker Tilly Nepal)
Estimate — confirm against the linked sources. See methodology.