Buying Property in Mangaluru
As An NRI
Navigate FEMA regulations, capital gains tax, and seamless remote purchasing with KudlaHomes. No jargon—just the exact steps to securely invest from abroad.
WhatsApp Local Expert01 / The Law
Can NRIs Buy Property in India?
A common misconception among diaspora communities is that investing in Indian real estate is severely restricted. The reality is quite the opposite. The Reserve Bank of India (RBI), through FEMA, actively encourages NRIs and OCIs to invest.
Bottom Line: NRIs can freely purchase residential and commercial property in India without any prior RBI approval.
Allowed to Buy
- Apartments & Flats
- Villas & Row Houses
- Residential Plots
- Commercial Office Spaces
- Retail Shops
Not Allowed
- Agricultural Land
- Farmhouses
- Plantation Property
Inheritance Exception: NRIs cannot purchase agricultural properties, but they are fully permitted to inherit them from a resident Indian citizen.
03 / The Process
How NRIs Can Buy Property Remotely
Buying property entirely from a different continent can feel daunting. However, with digital banking and mature legal frameworks, thousands of NRIs successfully acquire prime Mangaluru real estate without boarding a flight.
Open an NRE or NRO Bank Account
Under FEMA rules, payments for property must be handled through the formal Indian banking system. Funding your property purchase directly from your NRE account is highly recommended as it preserves your right to seamlessly repatriate the sale proceeds in the future.
Select a Verified Property
Begin your search through credible platforms. At KudlaHomes, we meticulously vet builders, verify RERA compliance, and ensure clear legal standing for every property listed to minimize remote investment risk.
Perform Legal Due Diligence
Never skip title verification. Engage an independent property lawyer in Mangaluru to verify the parent deed, Encumbrance Certificate (EC), Khata certificates, and building plan approvals.
Transfer Funds via Banking Channels
Transfer funds via normal banking channels by inward remittance from any place outside India, or by debit to your NRE/NRO/FCNR account. This generates the necessary audit trail for tax authorities.
Register the Property (Using PoA)
The final step involves executing the Sale Deed at the local sub-registrar's office. If you cannot be physically present in Mangaluru, this step requires a legally executed Power of Attorney (PoA).
How PoA Works for NRIs:
- • Drafted abroad, signed before a consulate officer/notary.
- • Attested by the Indian Embassy or Consulate.
- • Couriered to India and stamped within 3 months.
- • PoA holder signs Sale Deed & provides biometric data on your behalf.
04 / Taxation
Post-2024 Tax Rules for NRIs
The Finance Act of 2024 introduced sweeping changes to the capital gains tax structure that significantly impact NRIs selling property post-July 2024.
Short-Term (STCG)
If you sell an apartment within 2 years, the profit is treated as STCG. These gains are directly added to your total Indian taxable income and taxed according to your applicable income tax slab rates (which can reach 30%+).
Long-Term (LTCG)
CRITICAL 2024 UPDATE: For property transfers on or after July 23, 2024, LTCG for NRIs is taxed at a flat rate of 12.5%.
Warning: Complete removal of indexation benefits for NRIs. The tax is calculated on the absolute unadjusted profit.
TDS Rules When You Sell (Section 195)
When an NRI sells property, the buyer is legally obligated to deduct Tax Deducted at Source (TDS) on the total sale price (not just the profit) before sending the money.
Pro Tip (Lower TDS Certificate): Because this destroys cash flow, the NRI seller must apply to the Income Tax Department for a Lower or Nil TDS Certificate (Section 197). If granted, the buyer only deducts TDS based on the actual capital gains.
05 / Liquidity
Repatriation of Funds
A primary concern for international investors is liquidity: how easily can capital be pulled back out of the Indian economy? FEMA is highly cooperative in this regard.
NRE Account
Fully and freely repatriable. Any principal and interest earned in this account can be transferred to your foreign bank account without any limits and without seeking RBI approval.
*Interest earned is entirely tax-free in India.
NRO Account
Ideal for managing your Indian earnings (rental yields, dividends). Repatriation from an NRO account is strictly capped under the Liberalised Remittance Scheme (LRS).
The $1 Million Repatriation Rule
Under LRS, NRIs are allowed to repatriate an aggregate sum of up to USD 1 million per financial year out of their NRO account balances. This covers property sale proceeds, inherited assets, and rental income.
Mandatory Clearance Documents:
- 1Form 15CB
Issued by a Chartered Accountant (CA) certifying taxes are paid.
- 2Form 15CA
Self-declaration filed online referencing the CA's 15CB.
06 / Security
Safe Investing in Mangaluru
We act as your localized ears, eyes, and advocates on the ground, operating strictly within the safe harbor of RERA regulations.
RERA Protection
The Real Estate (Regulation and Development) Act ensures radical transparency for off-plan properties. Builders must deposit 70% of buyer funds into a dedicated escrow account, practically eliminating fund diversion risk.
KudlaHomes Quality Promise: We refuse to list any under-construction projects in Mangaluru that lack active RERA registration.
Rigorous Vetting
Every property undergoes strict title checks. We eliminate legally compromised assets before they reach your screen.
Live Video Walkthroughs
Unable to fly down? We conduct hyper-detailed, unbiased video tours of the exact unit, assessing quality and sunlight.
Legal Coordination
We orchestrate the backend, coordinating between builders, local independent legal counsel, and facilitating PoA documentation.
Legal Disclaimer
The information provided in this guide is intended strictly for general educational purposes and does not constitute financial, legal, or tax advisory services. KudlaHomes is a real estate brokerage firm operating in Mangaluru and not an authorized tax advisory firm. The regulatory frameworks managed by the RBI (FEMA) and the Ministry of Finance (Income Tax Act) are subject to continuous legislative amendments. Consequently, tax laws and capital gains structures change frequently. We strongly implore you to consult a qualified Chartered Accountant (CA), legal counsel, or certified financial advisor specialized in NRI taxation before executing any property transactions or formulating tax strategies.
Need Help Buying Property in Mangaluru from Abroad?
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