So, you are looking to buy a property in Kerala. You must be aware that there are some extra costs beyond the price of the property itself. Yes, we are talking about the stamp duty and land registration charges. These are the two mandatory expenses that may take first-time buyers by surprise. 

In this guide, we will walk you through everything you need to know about stamp duty and registration charges in Kerala. This will help you understand how much you need to pay. 

What Are Stamp Duty and Registration Charges in Kerala?

Let us begin with the basics. When you begin the buying process in Kerala for a home or property, the government requires you to pay these two separate but distinct charges. These can be considered to be the official charges for proving that you own the property. 

Stamp duty refers to the state-imposed tax that validates and legally records the transfer of the property in your name. You can consider it to be the stamp of approval from the government on your property transaction. Without the stamp duty, your property transaction will not be officially recognised. 

Registration charges or registration fees are the cost of actually registering the property in the official registry. This will help you create a legal document that will prove that you are the owner. It is actually the government’s way of keeping a record of who owns which property in Kerala. 

These two charges together account for around 10% of your property value. It is crucial to factor these costs in your budget. 

Stamp duty charges in Kerala 

Having understood what stamp duty and registration fees are, let us come to the actual costs. 

The stamp duty is a straightforward 8% of the total property value. This would remain consistent across any region across Kerala – be it Kochi, Munnar, or Thiruvananthapuram. However, there may be slight differences based on the category of buyers. 

General Buyers 

If you are a standard property buyer, you will need to pay 8% of the property value as stamp duty. Imagine you are buying a property at a value of Rs 1 Crore, your stamp duty would be Rs 8 Lakhs. 

The amount is paid along with the registration fees. So you will need to keep both the funds available at the time of registration.

Female buyers 

Kerala does not offer any special concessions or reduced stamp duty rates for female buyers. Many other states offer special rates and exemptions for women. But, Kerala treats all the buyers on the similar scale. 

Joint Owners 

If you are buying a property as joint owners, the stamp duty remains the same at 8%. The rates do not change based on the people who are the co-owners. You can calculate the stamp duty based on the total market value of the property. 

Registration Charges in Kerala

In Kerala, the registration charges are much simpler than the stamp duty. The registration charges are a flat 2% of the total property value. This rate is consistent across the residential and commercial properties. The flat registration charges are same across the entire state. 

Just like the stamp duty, the registration fees is on the higher amount among the two values –

• The actual sale price you’re paying
• The circle rate (fair market value) set by the government for that locality

That would mean if the market value of the property you are buying is Rs 50 Lakhs and the actual price you are paying is Rs 40 Lakhs, the registration fees would be 2% of Rs 50 lakhs and not on Rs 40 lakhs. 

How Land Registration Charges Are Calculated in Kerala?

Let us take the practical example to calculate the land registration charges in Kerala based on a market value of Rs 1 Crore. We are taking this value because this is the common price point for most of the residential properties in the prime locations in Kerala.

Thus, if you are buying a property worth Rs 1 Criee in Kerala, you will need to set aside a budget of Rs 10 Lakhs for stamp duty and registration fees.  That’s a significant amount, and it’s one of the primary reasons real estate advisors always recommend calculating these costs before making your down payment.

This means the total cost of legally registering a ₹1 crore property in Kerala is ₹10 lakh. When you’re planning your property purchase budget, always add this 10% to the property price to get your true total cost.

Factors Affecting Registration Fees and Stamp Duty

The stamp duty and registration fees are common across the entire state of Kerala for any property. However, the actual prices that you would pay for the property would differ.

The factors that can affect the total value include 

Market Value

The market value of your property is the primary factor that decides the stamp duty and registration fees. Thus, if you buy an expensive property, it will naturally incur higher charges. 

However, the percentage rate for the property does not change irrespective of the market value of the property. 

Property Type

The circle rate refers to the government assessed value of a property. A residential apartment, a commercial office space, and agricultural land might all have different circle rates in the same locality. This gives rise to different calculations for different properties. 

Additionally, certain special property transfers (like gifts, partitions, or mortgages) have different stamp duty rates that we’ll explore in the exemptions section below.

Location

The location decides the value of a property and thus the stamp duty and registration fees. Prime locations in Kochi, for instance, have higher circle rates than remote areas in Kerala. That means different locations have different market values. 

If you’re buying property in a high-demand area like Fort Kochi or Ernakulathannapuram, the circle rate will be higher, which means you’ll pay stamp duty and registration on a higher amount.

Buyer Category

The buyer category does not affect the stamp duty and registration fees. Everyone pays 8% stamp duty and 2% registration, regardless of their gender or relationship to other owners. However, in special cases like gifts between family members or partitions of property among legal heirs, different rules apply, which we’ll cover next.

Exemptions and Concessions on Stamp Duty and Registration Fees in Kerala

Kerala does not provide exemptions based on the gender or location or any other specific scenarios. 

Gift Deeds to Family Members

If you are transferring property to a family member as a gift, or a legal heir of any deceased person, you can get a significant concession. Instead of 8% stamp duty, you will have to pay only Rs 2 per 1000 of the property value. However, the minimum value payable is Rs 1000. 

For a ₹1 crore property gifted to a family member:

• Instead of ₹8 lakh, you’d pay approximately ₹20,000 (much lower!)
• Registration fee would still be 1% instead of 2%

Gifts to Non-Family Members

If you’re gifting property to someone outside your family, the rates revert to the standard 8% stamp duty and 2% registration.

Partition Among Heirs

When property is partitioned among family members or legal heirs, the stamp duty is reduced to ₹15 per ₹10,000 of the separated share’s value (minimum ₹1,000), with a 1% registration fee instead of 2%.

Wills

Creating a will has no stamp duty cost, though there’s a registration fee of ₹525. This encourages people to make formal wills without the burden of high stamp duty.

Mortgage Deeds

Mortgage transactions have different rates depending on whether possession of the property is transferred:

• With possession transfer: ₹8 per ₹100 of secured amount
• Without possession transfer: ₹5 per ₹100 of secured amount

Lease Agreements

Lease terms affect the rates. Short-term leases (less than 1 year) have lower rates, while longer-term leases have higher rates based on the average annual rent.

Key Takeaways for Property Buyers in Kerala

If you are buying a property, it is essential to learn in detail about the stamp duty and land registration fees in Kerala. It is highly important to budget for these costs before you move forward with the purchase decision. Now that you understand how these charges work, you can make informed decisions and avoid any financial surprises.

Whether you’re buying a modest apartment or a luxury villa in Kerala, these charges are an unavoidable part of the process. But with proper planning and understanding, they’re something you can budget for and manage effectively as part of your overall property investment.