For Non-Resident Indians (NRIs) buying property in Bangalore or anywhere in Karnataka, one of the largest upfront expenses is stamp duty and registration charges. These government-imposed fees make ownership legally valid and must be paid at the time of registration.

In 2025, Karnataka increased the registration fee from 1% to 2%, making accurate cost calculation even more important for NRIs planning property purchases.

This guide explains the stamp duty rules, exemptions, examples, and how Owne helps NRIs plan their property expenses with accurate calculators and legal support.

Are Stamp Duty and Registration Different for NRIs?

No. NRIs pay the same stamp duty and registration charges as resident Indians.

The only differences between NRIs and residents arise at the time of selling property (capital gains tax, TDS), not during purchase.

Current Stamp Duty and Registration Charges in Karnataka (2025)

The rates depend on the property value:

Properties up to ₹20 lakh
• Stamp duty: 2%
• Registration: 2%

Properties ₹21–₹45 lakh
• Stamp duty: 3%
• Registration: 2%

Properties above ₹45 lakh
• Stamp duty: 5%
• Registration: 2%

Most NRI purchases—especially apartments and villas in Bangalore—fall into the highest slab.

The effective transaction cost becomes approximately 7% (stamp duty + registration), plus cess and surcharge of around 0.6%.

Example: NRI Buying Property in Bangalore

An NRI purchasing a ₹1.5 crore villa in North Bangalore would pay:

• Stamp duty (5%): ₹7.5 lakh
• Registration (2%): ₹3 lakh
• Cess and surcharge (~0.6%): ₹90,000

Total upfront charges: ₹11.4 lakh

This is nearly 8% of the property value, making it important for NRIs to plan these costs early.

Additional Charges to Consider

• BBMP/BDA cess: 10% of stamp duty
• Surcharge: 2–3% depending on property type
• Legal and documentation charges: ₹15,000–₹25,000

These smaller fees add up and should be included in budgeting.

Exemptions and Deductions for NRIs

Affordable housing (below ₹45 lakh):
Lower stamp duty applies in the 2–3% range.

Gift deeds to immediate family:
Concessional duty applies if property is gifted to spouse or children.

Income tax deduction:
Stamp duty can be claimed under Section 80C (up to ₹1.5 lakh) if the NRI files an ITR in India.

Legal Rules for NRIs

• All payments must be made through Indian banking channels.
• NRE or NRO account, or inward remittance, is required.
• Cash payments are not allowed.
• Property must be registered at the sub-registrar office.
• If the NRI is abroad, a registered Power of Attorney (PoA) holder can sign documents on their behalf.

How Karnataka Compares with Other States

• Karnataka (Bangalore): ~7.6% effective cost
• Maharashtra (Mumbai, Pune): ~6%
• Delhi: 6–7% depending on gender-based rebates
• Tamil Nadu: ~7%

Karnataka is among the higher-cost states, especially after the 2025 registration fee increase.

How Owne Helps NRIs

Owne ensures full transparency and legal compliance for NRI buyers by offering:

• Stamp Duty Calculator that shows exact charges before committing
• Guidance value benchmarking (duty calculated on the higher of sale price or guidance value)
• RERA-verified properties only
• Remote purchasing support, including PoA handling
• Escrow-backed payment flow compliant with FEMA rules

This prevents last-minute surprises and reduces the risk of payment errors.

Case Study: NRI Buyer in the US

A couple based in California purchased a ₹2 crore apartment in Whitefield.
Their broker discussed only the base price and did not account for stamp duty and other statutory charges.

At registration, they unexpectedly faced a ₹15.2 lakh bill.

With Owne’s calculator and legal support, the charges were shown upfront, allowing them to plan funding in advance and avoid stress during registration.

Frequently Asked Questions

1. Do NRIs pay higher stamp duty than residents?
No. The rates are the same for both.

2. Can NRIs pay stamp duty in foreign currency?
No. Payment must be made in INR via NRE/NRO account or inward remittance.

3. Is stamp duty refundable?
Partially, if the transaction is cancelled before registration.

4. Do women NRIs get lower stamp duty?
In Karnataka, no. Gender-based rebates are not provided.

5. Can Owne handle the stamp duty process for NRIs?
Yes. Owne manages challans, registration scheduling, PoA handling, and escrow compliance.

Conclusion

In 2025, NRIs purchasing property in Karnataka should plan for approximately 7.5–8% in additional costs due to stamp duty, registration, and cess. The increased registration fee has made early budgeting essential.

Owne simplifies this process by:

• Providing upfront cost calculations
• Ensuring all properties are RERA-compliant
• Offering remote registration support
• Securing funds through escrow-based flow

Whether buying for self-use or investment, NRIs can make fully informed decisions with Owne’s tools and legal safeguards.