Property & Farmland in Kerala
Who can buy, how ownership works, and the taxes and duties for buying property in Kerala.
Who can buy in Kerala
Indian citizens and resident buyers enjoy unrestricted ownership of residential and commercial real estate. NRI/OCI buyers follow FEMA regulations — residential/commercial allowed, agricultural land only via inheritance. Foreign nationals cannot purchase property in India except by inheritance.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Indian Resident | Yes | Freehold | Unrestricted purchase of residential, commercial, agricultural |
| NRI / OCI | Conditional | Freehold | Residential and commercial allowed; agri/plantation/farmhouse only via inheritanceApproval: FEMA / RBI compliance |
| Foreign National | No | None | Cannot purchase; inheritance allowed from Indian resident |
India rule, applies in Kerala.
Stamp duty and registration in Kerala
Stamp duty and registration charges are mandatory taxes on property transactions in Kerala, calculated as a percentage of the property's value.
| Property value | Stamp duty | Registration |
|---|---|---|
| All property values | 8% of property value | 2% of property value |
Capital gains on a sale
Capital gains tax applies to profits from property sales. It's categorized as short-term or long-term based on the holding period, with different tax rates and potential indexation benefits.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| 24 months or less | Short-Term Capital Gain (STCG) | At your income tax slab rate | Not applicable |
| More than 24 months | Long-Term Capital Gain (LTCG) | 12.5%, without indexation | Not applicable |
India rule, applies in Kerala.
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
Frequently asked questions about Kerala
With conditions. Residential and commercial allowed; agri/plantation/farmhouse only via inheritance Approval: FEMA / RBI compliance.
Buying or selling in Kerala?
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