Kathmandu: Nepal recorded its highest-ever single-day land transaction volume on the final day of Fiscal Year 2025/26, as thousands of property buyers and sellers rushed to complete deals before higher capital gains tax rates came into effect.
According to the Department of Land Management and Archive (DoLMA), a total of 10,968 land transactions were completed nationwide on July 16, the highest number ever recorded in a single day. The transactions were processed through 136 Land Revenue Offices and six local municipalities authorized to provide land registration services.
The surge came just one day before the government implemented revised capital gains tax rates on land transactions from July 17, prompting property owners to finalize sales under the previous tax structure.
Record Revenue Collection
The unprecedented level of activity also generated a significant boost in government revenue. The DoLMA reported that land transactions on July 16 alone contributed Rs 1.737 billion in revenue.
The momentum had already been building a day earlier. On July 15, authorities recorded 10,182 land transactions, generating Rs 1.189 billion in government revenue.
Balaram Kafle, Chief Information Technology Officer at the DoLMA, said the department had never recorded more than 10,000 land transactions in a single day.
“According to our records, the transactions completed on July 16 are the highest ever. We have no previous record of more than 10,000 land transactions in a single day,” Kafle said.
Higher Capital Gains Tax Takes Effect
The rush in property transactions followed the government’s decision to increase capital gains tax on land sales from the beginning of the new fiscal year.
Under the revised tax regime, land held for more than five years is now subject to a 7.5 percent capital gains tax, up from the previous 5 percent. Likewise, land owned for less than five years now attracts a 10 percent tax, compared to the earlier 7.5 percent.
The higher tax rates encouraged many buyers and sellers to complete transactions before the new provisions became effective.
Property Market Regaining Momentum
According to the department, Nepal’s real estate market experienced weak activity during the initial months of the fiscal year but gradually recovered after mid-September, with transaction volumes steadily improving in subsequent months.
Officials attribute the recent increase in market activity to improving investor confidence, greater demand for property transactions, and anticipation of policy changes affecting taxation.
Expanded Local Service Delivery
To improve public access, the DoLMA said property registration services are now available not only through Land Revenue Offices but also through six municipalities—Melamchi, Shivasatakshi, Chaudandigadhi, Bhumlu, Kankai, and Manohara-Kageshwari—allowing residents to complete land transactions closer to home.
Damaged Land Offices Back in Operation
The department also confirmed that all land revenue and survey offices damaged during the September 8–9 protests last year have resumed operations.
During the unrest, 22 Land Revenue Offices and 14 Survey Offices were vandalized or set on fire. Of those, five Land Revenue Offices and eight Survey Offices were completely destroyed, while the remaining offices sustained partial damage.
According to the DoLMA, all affected offices have since been restored and are now fully operational, ensuring uninterrupted delivery of land registration and survey services across the country.
