✱ NRI · UDUPI & MANGALORE
NRI property in Udupi & Mangalore
An NRI or OCI can buy residential and commercial property in India freely, with no limit on the number of units and no RBI permission, as long as the money moves through banking channels. Agricultural land, plantation property and farmhouses cannot be bought at all. We handle the whole transaction from Udupi so you do not have to fly in: video walkthroughs, power of attorney, registration and, on a sale, the TDS and repatriation paperwork.
The single biggest risk for an NRI buyer here is land classification. A great deal of land around Udupi and Mangalore is still agricultural on the revenue record even when a layout has been carved out of it. Buying it as an NRI is not permitted, and a breach can cost up to three times the transaction value. We read the RTC before you commit.
- Can buy
- Residential and commercial, no unit limit
- Cannot buy
- Agricultural land, plantation, farmhouse
- RBI permission
- Not needed for residential or commercial
- Payment route
- NRE, NRO, FCNR or inward remittance
- Visiting India
- Not required, power of attorney drafted here
- TDS if you sell
- At capital gains rates, not the resident 1%
- Home loan
- Available, handled by our own ex-banker
- Governing rule
- FEMA Non-debt Instruments Rules, 2019
✱ BUYING FROM ABROAD
How an NRI purchase actually runs
Most of our NRI clients are in the Gulf and have limited leave. The process below is built so that a purchase needs no trip, and so that nothing is signed before the record has been read.
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01
Shortlist and video walkthrough
You tell us the area, budget and purpose. We shoot the property on video, including the approach road, the neighbours and the things a photograph is chosen to hide.
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02
Land classification check, first
Before anything else, our advocate reads the RTC to confirm the land is not agricultural. For an NRI this is not a formality, it is the difference between a legal purchase and a FEMA breach.
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03
Full title and CRZ verification
Thirty year title chain, encumbrance certificate from Kaveri, khata, conversion order and mutation, plus the coastal zone classification where the parcel is near the sea, a backwater or a river mouth.
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04
Power of attorney
We draft a special power of attorney limited to this transaction. You execute it abroad, usually at the Indian consulate or notarised and apostilled, and it is then stamped in India. We tell you exactly where to sign and what to send back.
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05
Payment through the right channel
Funds come by inward remittance or from your NRE, NRO or FCNR account. Not cash, not foreign currency, not traveller cheque. Keep every remittance advice, because those documents decide how much you can repatriate if you sell later.
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06
Registration
Your attorney holder signs at the sub-registrar office with jurisdiction over the property. Stamp duty and the 2 percent registration fee are paid on the higher of sale value or guidance value. We send you the registered deed.
✱ SELLING AND TAKING MONEY OUT
What changes when an NRI sells
The sale itself is ordinary. The tax deduction and the repatriation are not, and both need to be planned before a price is agreed rather than after.
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01
TDS is deducted at capital gains rates
A resident seller has 1 percent deducted when the price is 50 lakh or more. For an NRI the buyer must deduct at the capital gains rate plus surcharge and cess, broadly in the 12.5 to 20 percent band for a long term gain before surcharge. It comes off the sale value at source, so it changes what you actually receive on the day.
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02
A lower deduction certificate can help
Where your real gain is much smaller than the deduction implies, an application to the assessing officer for a lower or nil deduction certificate can reduce what is withheld. It takes time, so it has to be started early, not at registration.
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03
Proceeds go to your NRO account
From there, repatriation is subject to the annual NRO remittance limit and to a chartered accountant certifying that taxes are paid, normally on Forms 15CA and 15CB.
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04
Original investment is easier to repatriate
If the property was bought with money remitted from abroad or from an NRE account, taking that original investment back out is more straightforward. This is the practical reason to keep every remittance record from the day you buy.
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05
Capital gains exemptions still apply
Sections 54, 54EC and 54F are available to NRIs on the same conditions as residents, so reinvesting in a residential house or specified bonds within the deadlines can reduce or remove the gain. Confirm your own position with a chartered accountant.
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06
You still do not need to fly in
The same power of attorney route works for a sale. We handle the buyer, the agreement, the sub-registrar appointment and the paperwork trail your bank will ask for later.
Tax rates, surcharge and remittance limits change by notification and in Union Budgets. Checked 6 September 2026. Take the figures here as the shape of the problem and confirm your own numbers with a chartered accountant before you sign an agreement.
✱ QUESTIONS
What NRI clients ask
Can an NRI buy property in Udupi or Mangalore?
Yes, residential and commercial property, freely. There is no cap on the number of units and no RBI permission is needed, as long as payment comes through NRE, NRO or normal banking channels. Agricultural land, plantation property and farmhouses cannot be bought at all. They can only be inherited. This is set by the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
Can an NRI buy agricultural land in India?
No. Under FEMA an NRI or OCI cannot buy agricultural land, plantation property or a farmhouse. It can only be inherited. A breach can cost up to three times the transaction value, so the land classification in the revenue record matters far more than what anyone tells you on site. In coastal Karnataka a great deal of land is still agricultural on the RTC, which is why we read the record before you commit.
How must an NRI pay for property in India?
Through normal banking channels: funds remitted to India from abroad, or from your NRE, NRO or FCNR account. Payment in foreign currency, in cash, or by traveller cheque is not permitted. Keep the remittance records, because they decide how much you can take back out when you sell.
Do I have to fly to India to buy or sell?
No. Our legal team drafts a special power of attorney so someone you trust can sign on your behalf. It must be executed properly abroad, usually before the Indian consulate or notarised and then apostilled, and then stamped in India. We prepare the wording, tell you exactly where to sign it, and coordinate the sub-registrar appointment. We also walk the property on video before you decide.
What TDS applies when an NRI sells property in India?
Much more than the 1 percent a resident seller faces. The buyer must deduct at capital gains rates applicable to NRIs, plus surcharge and cess, which for a long term gain is broadly in the 12.5 to 20 percent band before surcharge. Because it is deducted on the sale value at source, plan it before you agree a price. A lower deduction certificate from the assessing officer can reduce it where the actual gain is smaller than the deduction implies.
Can I take the sale money back out of India?
Generally yes, within limits and with the right paperwork. Proceeds go to your NRO account and repatriation is subject to the annual limit for NRO remittance and to a chartered accountant certifying the taxes, usually on Forms 15CA and 15CB. If the property was bought with funds remitted from abroad or from an NRE account, repatriation of the original investment is more straightforward, which is exactly why we tell buyers to keep the remittance records from day one.
Can an NRI get a home loan in India?
Yes. Indian banks lend to NRIs against Indian property, with repayment through NRE or NRO accounts. Ajay Pandit, who spent 15 years in a bank home loan division, handles NRI files directly rather than passing them to a third party.
Buying or selling from abroad?
Tell us where you are, what you are looking at, and how much time you have. We work to Gulf hours when needed, and we will tell you early if a property is one an NRI cannot legally buy.
3rd Floor, Sriram Building, Bannanje, Udupi 576101, KarnatakaMonday to Saturday, 9am to 7pm IST