NRI Guide to Buying Property in Bangalore
An NRI or OCI may buy residential and commercial property in India. FEMA allows it without any special permission. Agricultural land, plantations and farmhouses are the exception. Those cannot be bought.
Payment must come through banking channels. Funds move from an NRE, NRO or FCNR account, or by inward remittance. Cash is not permitted. The account you use affects repatriation later.
You do not have to be in India to register. A properly executed power of attorney lets someone act for you. TDS, documentation and tax filing still apply. Plan those before you commit.
Who Can Buy, and What Is Off Limits
NRIs and OCI cardholders
Both may acquire residential and commercial immovable property in India. No approval from the Reserve Bank is needed for such purchases. The rules apply uniformly across states. Karnataka is no different.
What cannot be purchased
Agricultural land, plantation property and farmhouses are outside the general permission. These can only be inherited or received as a gift, subject to conditions. Do not rely on workarounds. They fail on scrutiny.
Joint ownership
An NRI may buy jointly with another NRI or OCI. Buying jointly with a resident is possible but has its own conditions. Get the structure checked in advance. Changing it later is expensive.
Funding the Purchase: NRE, NRO and FCNR
The account you pay from decides how easily money comes back out. This is the single most useful thing to get right early.
| Account | What it holds | Repatriation |
| NRE | Foreign earnings converted to rupees | Freely repatriable, principal and interest |
| NRO | Income earned in India, such as rent | Repatriable within annual limits, with documentation |
| FCNR | Deposits held in foreign currency | Freely repatriable |
Paying from NRE or by direct inward remittance keeps the cleanest trail. Repatriating sale proceeds later is simpler on that basis. Paying from NRO is allowed but adds steps. Keep every remittance advice.
Under FEMA, sale proceeds of residential property can be repatriated for a limited number of properties, subject to conditions. The amount cannot exceed what was originally remitted in foreign exchange. Ask a professional about your case.
Home Loans for NRIs
Availability
Indian banks and housing finance companies lend to NRIs. The loan is sanctioned in rupees. Tenures are often shorter than for residents. Loan-to-value follows the same regulatory bands.
Repayment
EMIs must be paid through banking channels. Remittance from abroad, or debit to an NRE or NRO account, are the usual routes. A resident co-applicant can also service the loan. Keep the source documented.
Documentation differences
Lenders want overseas income proof, a copy of the visa or work permit, and passport pages. Overseas bank statements are usually required. Documents executed abroad often need attestation. Build in time for that.
Power of Attorney for Remote Registration
Why it is used
Registration in Karnataka needs parties present at the sub-registrar's office. Most NRI buyers cannot attend. A power of attorney lets a trusted person sign and register for you. It is standard practice.
How to execute it abroad
The document is signed before the Indian consulate or notarised and apostilled, depending on the country. It is then sent to India. There it must be adjudicated and stamped before use. Skipping that step invalidates it.
Keep it narrow
Draft the power for one specific transaction. Name the property and the acts permitted. Set an end date. A broad, open-ended power is a risk you do not need to take.
| Document | Purpose |
| Passport and visa or work permit | Identity and residency status |
| OCI card, where applicable | Establishes eligibility to buy |
| PAN | Mandatory for the transaction and TDS |
| Overseas address proof | Required by banks and for registration |
| Power of attorney, stamped in India | Lets a representative register on your behalf |
| Remittance advices and bank statements | Evidence of the funding route for repatriation |
Gather these before you shortlist, not after. Attestation abroad takes weeks. Bookings have deadlines. Paperwork delays are the most common reason NRI purchases stall.
TDS, Tax and Documentation
Tax steps are where NRI purchases most often go wrong. The rules differ depending on who is selling.
| Situation | What applies |
| Buying from a resident seller | TDS at 1% on consideration above ₹50 Lakhs |
| Buying from an NRI seller | Different and higher rates apply; take professional advice |
| PAN | Required for the transaction and for TDS compliance |
| Rental income later | Taxable in India; TDS applies on rent paid to an NRI |
| Records to keep | Remittance advices, bank statements, TDS certificates, registered deed |
The buyer carries the TDS obligation, not the seller. Deduct, deposit and issue the certificate. Missing it creates a problem in your name. It also complicates repatriation later.
Statutory charges are the same for everyone. Karnataka stamp duty is 5% above ₹45 Lakhs and registration 1%. GST at 5% without input tax credit applies to under-construction homes.
Practical Checks Before You Commit
Verify the project on the Karnataka RERA portal at rera.karnataka.gov.in. Confirm the registered promoter entity. Match the sanctioned plan against the brochure. Do this before any payment leaves your account.
Appoint a local lawyer for title diligence. Ask for the encumbrance certificate and the khata. Have the Agreement to Sale reviewed line by line. Distance makes these checks more important, not less.
These steps apply to any purchase in the city, including projects in the Devanahalli belt such as Milan at Godrej MSR City. The process does not change with the address.
This is general information, not tax, legal or investment advice. FEMA rules, tax rates and banking norms change. Consult a chartered accountant and a lawyer familiar with NRI transactions before you commit funds.
Frequently Asked Questions
1. Can an NRI buy an apartment in Bangalore?
Yes. NRIs and OCI cardholders may acquire residential and commercial immovable property in India under FEMA, without needing approval from the Reserve Bank. Karnataka applies the same rules as other states.
2. What can an NRI not buy?
Agricultural land, plantation property and farmhouses fall outside the general permission. They may be inherited or received as a gift subject to conditions, but not purchased.
3. How should an NRI pay for the property?
Through banking channels only — inward remittance, or from an NRE, NRO or FCNR account. Cash is not permitted. Paying from NRE funds keeps the cleanest record for repatriation later.
4. Can I buy without travelling to India?
Yes, using a power of attorney executed before an Indian consulate or notarised and apostilled abroad. It must then be adjudicated and stamped in India before it can be used for registration.
5. What TDS applies when an NRI buys property?
When buying from a resident seller, 1% on consideration above ₹50 Lakhs, deducted and deposited by the buyer. Buying from an NRI seller attracts different and higher rates, so take professional advice.
6. Can sale proceeds be sent back abroad?
Repatriation of residential sale proceeds is permitted for a limited number of properties. It is subject to FEMA conditions and to the amount originally remitted in foreign exchange. Keep every remittance record.
Explore Milan at Godrej MSR City
