Nepal’s New Budget Embraces Startups, Digital Nomads, and Gen-Z Entrepreneurs. Digital Nomad Visa Nepal. Embrace Startups and Gen-Z enterpreneurs. The Nepal government has unveiled its budget for the fiscal year 2082/83 (2025/26), placing a strong emphasis on youth, startups, digital infrastructure, and the information technology (IT) sector. Finance Minister Bishnu Prasad Paudel presented the budget in a joint session of parliament, announcing several forward-looking policies designed to empower young people as job creators rather than job seekers.
What is a Digital Nomad?
A Digital Nomad is someone who uses digital technology to work remotely and lives a location-independent lifestyle. Instead of working from a fixed office, digital nomads often travel and live in different cities or countries while working online. Their jobs typically rely on laptops, Wi-Fi, and cloud-based tools, allowing them to work from cafés, coworking spaces, or even beaches.
Popular Jobs for Digital Nomads:
- Software Developer / Web Designer
- Content Writer / Copywriter
- Digital Marketer / SEO Specialist
- Virtual Assistant
- Online Teacher / Coach
- Graphic Designer
- Video Editor / YouTuber
- eCommerce or Dropshipping Business Owner
Major Highlights:
1. Digital Nomad Visa Introduced
For the first time, Nepal is launching a Digital Nomad Visa aimed at remote workers from around the world. This visa will allow international professionals to live in Nepal while working for foreign companies. The initiative is expected to attract digital workers to reside and spend in Nepal, boosting the local economy and talent exchange.
A Digital Nomad Visa is a type of visa introduced by some countries that legally allows remote workers to live and work there for an extended period (usually 6 months to 2 years), without requiring a local employer or sponsorship.
Additionally, the government plans to offer free residential visas to international investors and specialists working with startups.
2. No Income Tax for Startups
Startups generating up to NPR 10 crore (~USD 750,000) annually will enjoy a 5-year income tax exemption. This move is widely welcomed by emerging entrepreneurs who have long been advocating for tax relief during their formative years.
A concessional loan fund of NPR 730 million (approx. USD 5.5 million) at just 3% interest will also be introduced to promote startup entrepreneurship.
3. Gen-Z Incubation Centers
Recognizing the potential of Generation Z, the government will establish dedicated Incubation Centers for skill development, business incubation, and access to capital. Youths will be able to access collateral-free loans ranging from NPR 200,000 to NPR 2 million, supporting their entrepreneurial ambitions.
These centers aim to connect young talents to market opportunities, supply chains, and innovation platforms.
4. Massive Support for IT Professionals
To boost IT services exports, 75% income tax exemptions will be granted on revenues from foreign clients. Furthermore, IT professionals based in Nepal will only be charged a flat 5% final income tax, a move expected to attract global outsourcing.
The government has also proposed to treat IT-based industries, resorts, and data centers as special industries, offering them tax and electricity tariff benefits.
5. Promoting AI, Data Centers, and Foreign Investment
The budget includes plans to:
- Encourage AI development in partnership with the private sector.
- Conduct a feasibility study to establish data centers in mid-hill regions.
- Prioritize locally-developed software in government procurement.
- Allow Nepali companies to invest abroad and receive “sweat equity” — shares in return for skills, knowledge, or services rather than cash.
50% of profits earned abroad through such investments must be repatriated to Nepal.
📝 Application Process (To Be Announced)
The exact application procedure is yet to be released. However, based on similar visa processes, applicants may need to:
- Prepare Necessary Documents:
- Valid passport.
- Proof of income or bank statements.
- Health insurance policy.
- Proof of remote employment or business ownership
- Submit Application:
- Details on whether the application will be online or through Nepali embassies/consulates are pending.
- Await Approval:
- Processing times and further steps will be clarified upon official announcement.
Visa Duration & Type:
- 5-year multiple-entry visa with annual renewal.
Eligibility Criteria:
- Minimum monthly income of $1,500 or a bank balance exceeding $20,000.
- Valid health insurance with at least $100,000 coverage applicable in Nepali hospitals.
- Proof of remote work (employment, freelance, or business ownership based abroad).
Challenges and Reactions
Experts and stakeholders have generally welcomed the budget, but some concerns remain. IT researcher Amrita Sharma praised the inclusive approach but highlighted a lack of clear execution strategy, especially regarding AI and IT ecosystem development.
Youth entrepreneur Rohit Gupta appreciated the tax incentives for service exports but criticized the absence of a broader industrial development strategy and suggested the inclusion of personal income tax reductions.
Conclusion
Nepal’s 2025/26 budget marks a significant step toward building a digital and entrepreneurial economy. With initiatives like the Digital Nomad Visa, tax-free startups, and Gen-Z incubation centers, the government is clearly targeting innovation-driven growth. However, successful implementation will be the key to turning these ambitious plans into tangible outcomes for the nation’s youth and tech sector.
