Why location determines your subsidy rate
Karnataka Tourism Policy 2024–29 offers the strongest capital investment subsidy to tourism projects outside Bengaluru Urban district. Hotels, resorts, homestays, and adventure tourism units in Mysuru, Mangaluru, Hampi, Coorg, and other districts can access up to 25% of eligible FCI, capped at ₹10 crore.
Projects within BBMP / Bengaluru Urban limits receive reduced rates per policy tables — confirm location classification with the Tourism Investment Facilitation Cell before land acquisition.
Incentive package outside Bengaluru
| Benefit | Rate | Notes |
|---|---|---|
| Capital subsidy | Up to 25% of FCI | Cap ₹10 Cr |
| Additional subsidy | +5% | Women, SC, ST, differently-abled in Kalyana-Karnataka & Kittur Karnataka |
| Stamp duty | 100% exemption | Land sale/lease and loan documents |
| Land conversion fee | Reimbursement | New and expanding tourism projects |
| Motor vehicle tax | 5-year reimbursement | Tourist buses and cabs for registered providers |
BenefitCapital subsidy
RateUp to 25% of FCI
NotesCap ₹10 Cr
BenefitAdditional subsidy
Rate+5%
NotesWomen, SC, ST, differently-abled in Kalyana-Karnataka & Kittur Karnataka
BenefitStamp duty
Rate100% exemption
NotesLand sale/lease and loan documents
BenefitLand conversion fee
RateReimbursement
NotesNew and expanding tourism projects
BenefitMotor vehicle tax
Rate5-year reimbursement
NotesTourist buses and cabs for registered providers
Priority regions with enhanced benefits
- Kalyana-Karnataka — Bidar, Kalaburagi, Yadgir and surrounding districts
- Kittur Karnataka — Belagavi, Vijayapura and surrounding districts
- Additional 5% capital subsidy for women, SC, ST, and differently-abled entrepreneurs
- 680-acre state tourism land bank available for investor projects
- District tourism committees provide local facilitation and circuit alignment
City guides for Karnataka hotel markets
Mysuru hotel subsidy guide · Mangaluru hotel subsidy guide · Hampi hotel subsidy guide · Bengaluru incentives guide · How to apply — Karnataka
More Karnataka incentive guides
Bengaluru hotel incentives · Stamp duty exemption · Land conversion fee