Updated 23 October 2026. We re-checked the GST, registration and TDS rules against the official sources in our Gulf baseline (read 20 October 2026), and converted at ₹25.82 per dirham, our figure from the rupee's 22 October 2026 close of 94.81 to the dollar (ThePrint, PTI) and the 3.6725 peg.

A ₹1.5 crore under-construction flat, line by line

Our calculation, rounded:

  • List price: ₹1.50 crore ≈ AED 580,950.
  • GST at 5%: ₹7.50 lakh ≈ AED 29,050 (CBIC; no input tax credit to the developer, so it is not reduced).
  • Stamp duty at about 5.6% (5% duty, additional duty of 10% of the duty, and a surcharge): ₹8.40 lakh ≈ AED 32,530. Karnataka's base rate here is from developer guidance; confirm the exact figure on the Kaveri portal.
  • Registration fee at 2%: ₹3.00 lakh ≈ AED 11,620 (Karnataka IGR).
  • Total before parking and deposits: ₹1.689 crore ≈ AED 654,150.
  • Ready-to-move with a completion certificate, all paid after it: no GST, so ₹1.614 crore ≈ AED 625,100.

TDS: not a cost, but your job

When the price is ₹50 lakh or more and the seller is resident, the buyer deducts 1% tax at source (Income-tax Act, 2025, section 393(1)). On ₹1.5 crore that is ₹1.5 lakh, deducted from what you pay the developer and deposited with the government in its name. It does not add to your cost, but missing it can bring interest and penalties to you as the buyer. If you buy a resale flat from a non-resident seller instead, the rate is far higher: 12.5% on long-term gains or 30% on short-term gains plus surcharge and cess (section 393(2)), so get the seller's lower-deduction certificate if there is one.

The smaller costs of buying from the Gulf

  • Power of attorney: AED 80 at an Al Hind centre in the UAE for a property POA, plus AED 19 service charge (Embassy of India, Abu Dhabi, 2026 fees). Saudi Arabia, Kuwait, Oman, Bahrain and Qatar fees are on Gulf.
  • Stamping that power of attorney in Karnataka: ₹100 adjudication fee at the Deputy Commissioner's office, within three months of it reaching the state (Karnataka Stamp Act).
  • Currency conversion: the gap between the market rate and your bank's rate. On AED 650,000, every 0.5% is about AED 3,250.
  • Project charges that vary: car park, club membership, maintenance deposit, floor-rise and preferential location charges. Ask for them in a written cost sheet before booking.
  • Loan costs, if any: processing fees and legal or valuation charges set by each bank.

How the money must travel

Pay the price, the GST and the duty from money remitted through banking channels or from your NRE, FCNR(B) or NRO account; traveller's cheques and foreign currency notes are not allowed (RBI Master Direction No. 12). If you take a loan, the bank pays the developer directly and the loan cannot be credited to your NRE or FCNR account (RBI Master Direction, updated 8 September 2026). Paying from NRE or FCNR money keeps open the right to send sale proceeds of up to two homes back abroad later.

Under construction or ready: which costs less?

On paper the ready flat saves the 5% GST: about AED 29,000 on our example. Against that, under-construction prices are often lower at launch, and payments are spread over construction. If you are paying rent in Dubai or Riyadh while the flat is built, add that to the comparison. Our earlier guide weighs the two for Gulf buyers in more detail: Ready to Move vs Under Construction for Gulf NRIs (2026).

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