In Brief
- Full remittance now permitted. A foreign national employed in Nepal may now remit up to 100% of net (post-tax) salary abroad in convertible foreign currency if employed by a company/industry with foreign investment, if the employee is non-resident, or if employed by an air-service-provider company.
- 70% ceiling survives narrowly. The former blanket 70% ceiling now applies only to foreign staff of purely domestic industries (with no foreign investment) under the Industrial Enterprises Act, 2076.
- Benefits fully remittable. Provident fund, gratuity and other accumulated benefits are fully remittable after tax. The change was made by a Nepal Rastra Bank amendment in force from 7 August 2025.
Foreign nationals who work and earn a salary in Nepal frequently ask a simple question: how much of that salary can they lawfully send home?
Until recently the answer was, for most, seventy percent. That position has changed. In August 2025 Nepal Rastra Bank (the central bank, “NRB”) amended its foreign-exchange directive so that a large class of foreign employees may now repatriate the entire net amount of their salary. This insight explains the current rule, who benefits, who does not, and how the entitlement is exercised in practice. It is general guidance, not advice on any particular case.
Where the rule comes from
Repatriation of foreign exchange from Nepal is a regulated activity. The maximum percentage of salary a foreign national may send abroad is not fixed by an Act of Parliament; it is set by directive of the central bank. The governing chain is as follows: the Foreign Exchange (Regulation) Act, 2019 (1962) and the Nepal Rastra Bank Act, 2058 (2002) empower NRB to regulate foreign-exchange dealings and to issue binding directives to licensed banks and financial institutions (“BFIs”). NRB does so through its consolidated Unified Circular, whose Section 17 governs the remittance of remuneration earned by foreign nationals. Commercial banks are bound to apply that Section as amended from time to time.
The current text is Section 17 of the NRB Unified Circular, 2081, as amended by the Foreign Exchange Management Department’s amendment circular of 22 Shrawan 2082 (7 August 2025).
The 70% ceiling (the old position)
Before the 2082 amendment, Section 17 imposed a seventy percent (70%) ceiling: a foreign national working in a Nepali firm, company or organisation could repatriate up to 70% of net remuneration (after deduction of applicable Nepali taxes) in foreign currency, with a parallel 70% ceiling for those working in air-service-provider companies. Provident, retirement and gratuity funds could be repatriated in full after tax. This is the origin of the “70%” figure with which many foreign employees, and some bank branches, remain familiar.
What the 2082 amendment changed
The amendment did not simply raise the ceiling to 100% for everyone. It created a differentiated regime: the full (100%) net amount is remittable for defined categories, while a narrower 70% ceiling survives for one residual category. The table below sets out the shift.
In working English translation, the amended Section 17(1) provides:
“The entire remaining amount of remuneration after deduction of applicable taxes from the amount mentioned in the contract or appointment letter issued by the employer may be repatriated in foreign currency for foreign nationals working in Nepali companies or industries with foreign investment (under the Foreign Investment and Technology Transfer Act, 2075); in foreign currency for non-resident foreign nationals working in Nepali firms, companies or institutions; and in Indian Rupees for other foreign nationals working in Nepali firms, companies or institutions.”
NRB Unified Circular, 2081, Section 17(1) (as amended, 2082)
Which category applies
The entitlement turns on the character of the employer and, in one case, the employee’s tax-residence status not on any single industry. The four situations are:
Foreign-invested companies. A foreign national employed by a Nepali company or industry that carries foreign investment under the Foreign Investment and Technology Transfer Act, 2075 may remit 100% of net salary in convertible foreign currency.
Non-resident foreign nationals. A foreign national who is non-resident for Nepali income-tax purposes (broadly, present less than 183 days in the year) may remit 100% in foreign currency, whatever the employer’s foreign-investment status.
Aviation employees. A foreign national employed by an air-service-provider company may remit 100% but aviation enjoys no exclusivity; it is simply one of the qualifying categories.
Domestic-industry employees. A foreign national employed by a purely domestic industry (no foreign investment) under the Industrial Enterprises Act, 2076 remains subject to the 70% ceiling.
In most cases today, a qualifying foreign employee may remit 100% of net salary.
Documents and how banks process it
The remittance is handled by the employee’s bank on the strength of a documented application. The papers required under Section 17 are: the employee’s application; the employer’s recommendation; the labour (work) permit (not compulsory for Indian nationals); the employee’s identity card and appointment letter; evidence of tax payment; and a valid visa (not required for Indian nationals). Where the entitlement is being claimed on the basis of foreign investment, it is prudent to have to hand the employer’s foreign-investment approval and company registration; where it is claimed on the basis of non-residence, evidence of tax-residence status assists.
Obtaining an authoritative confirmation
Because the amendment is recent, some bank branches continue, out of caution, to apply the superseded 70% position, or to assert that 100% is confined to a single sector. Where that happens, the escalation path is cumulative:
Submit a complete written application to the bank’s trade-finance / foreign-exchange desk, expressly citing amended Section 17 of the Unified Circular.
If the branch declines, escalate in writing to the bank’s head office (trade operations / compliance) and request a written decision identifying the provision relied upon.
If still unresolved, apply in writing to Nepal Rastra Bank, Foreign Exchange Management Department which issued the circular and supervises the bank for an authoritative interpretation and, if appropriate, a direction to the bank.
Key takeaways
The headline is favourable to foreign talent: most foreign employees in Nepal those in foreign-invested companies, non-residents, and aviation staff may now repatriate the whole of their net salary in foreign currency, and all accumulated benefits after tax. A 70% ceiling survives only for foreign staff of domestic, non-foreign-invested industries. Because foreign-exchange circulars are revised periodically, the applicable percentage and documentary conditions should always be reconfirmed against the then-current Unified Circular at the time a remittance is actually processed.