Asia-Pacific · NPR

Nepal

Reviewed 2026-06-21
Top income tax
29%
Self-employed SS
Optional
VAT
13%
Capital gains
10%
Exit tax
No
Nomad visa
No
59
/ 100
Tax efficiency48
Ease to enter42
Ease to exit93
Cost of living97
Internet17
English60
How is this scored?
Nepal taxes residents on worldwide income with a progressive personal scale whose top rate was cut to 29 percent in the FY 2083/84 budget (effective mid-July 2026), alongside a 25 percent corporate rate and 13 percent VAT. It is one of the cheapest places in Asia to live, but business registration is slow and there is no enacted digital nomad or entrepreneur visa yet, so most remote workers rely on short tourist stays. There is no wealth, inheritance, or exit tax, and capital gains are taxed at modest rates.

Personal income tax

Income tax structureProgressive
Top income tax rate29%
Entry income tax rate1%
Top rate threshold$29,000
Taxation basisWorldwide
Local/state income taxNo

Social security

Self-employed social securityOptional
Employee SS rate11%
Employer SS rate20%

Indirect & other taxes

VAT standard rate13%
Capital gains rate10%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo

Exit & residency

Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days

Corporate

Corporate income tax rate25%
WHT on dividends5%
CFC rulesNo

Incentives & special regimes

Special expat regimeNo

Immigration & setup

Digital nomad visaNo
Entrepreneur visaNo
Ease of setup2 / 5

Lifestyle

Cost of living index23
Internet speed84 Mbps
English proficiencyMedium
Civil liberties53

Sources

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Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.