Short answer: NRIs buying property in Bengaluru don't need RBI permission for flats, houses, plots or commercial property, and OCIs are treated the same. Agricultural land, farmhouses and plantations are off-limits. Pay only through banking channels or NRE, FCNR(B) or NRO accounts. Register in person or by power of attorney. Use NRE or FCNR(B) if you may want sale money abroad later.
- Allowed: residential and commercial property. Not allowed by purchase: agricultural land, farmhouse, plantation (FEMA Non-Debt Instruments Rules, r.24).
- The account you pay from decides repatriation later. Paying from NRE, FCNR(B) or fresh remittance keeps sale proceeds repatriable, for up to two homes.
- A power of attorney signed abroad must be stamped within three months of reaching Karnataka. A purchase-and-register POA carries just ₹500 stamp duty.
- TDS rules changed on 1 Apr 2026. Buying from a resident: 1% at ₹50 lakh or more (s.393(1)). Buying from an NRI seller: TDS at rates in force on the taxable amount (s.393(2)), with no ₹50 lakh threshold. Section 194-IA and 195 references are out of date.
- NRIs can get home loans in India, with the same RBI loan-to-value caps as residents.
- Can an NRI or OCI buy property in Bengaluru?
- Which account should an NRI use to pay for property?
- How does a power of attorney work for NRIs in Karnataka?
- What TDS applies when an NRI buys property in 2026?
- Can an NRI get a home loan for a Bengaluru flat?
- How much does an NRI need in cash? Two worked examples
- Can NRIs repatriate the money when they sell?
- What does an NRI need to do differently, step by step?
- What mistakes do NRI buyers make?
- What to do if...
- NRI buyer checklist
- Frequently asked questions
- Talk it through with acre&key
- Sources
Most of our NRI conversations start with the same four questions. Am I allowed? Which account do I pay from? Do I have to fly down? Can I take the money back out later? The rules are clearer than most people expect. The catch is that two early choices, which account you pay from and how your power of attorney is worded, decide what you can do years later. This guide puts those two choices first.
The buying process itself is the same as for a resident, so we won't repeat it here. Our step-by-step guide to buying a flat in Bengaluru covers it. This page is about what's different for you.
Can an NRI or OCI buy property in Bengaluru?
Yes. Under Rule 24 of the FEMA (Non-Debt Instruments) Rules 2019, an NRI or OCI can buy any immovable property in India other than agricultural land, a farmhouse or a plantation, from a resident, an NRI or an OCI (RBI FAQ on property). No RBI approval is needed and there's no limit on how many you buy.
| Who / what | Allowed? | Rule |
|---|---|---|
| NRI or OCI buying a flat, house or plot | Yes | NDI Rules r.24(a) |
| NRI or OCI buying commercial property | Yes | r.24(a) |
| Agricultural land, farmhouse, plantation | Not by purchase or gift | r.24 |
| Inheriting any property | Yes | r.24 |
| Non-NRI foreign spouse, jointly with NRI/OCI spouse | One property | r.25 |
Around Bengaluru, the agricultural land rule matters more than you'd think. Plenty of "plots" on the city's edge sit on land that hasn't been converted for non-agricultural use. Ask a lawyer to check the land's classification and conversion order before you go further. Our guide to property legal checks, from title to OC lists what to ask for.
Legal points are general information. Confirm with a property lawyer.
Which account should an NRI use to pay for property?
The RBI allows payment by inward remittance through normal banking channels, or from your NRE, FCNR(B) or NRO account. Traveller's cheques and foreign currency notes aren't allowed (RBI FAQ).
All three accounts can pay. They don't all give you the same exit.
| Pay from | Sale proceeds repatriable later? | Source |
|---|---|---|
| Fresh remittance from abroad | Yes, for up to two residential properties | RBI property FAQ, Q7 |
| NRE account | Yes, for up to two residential properties | Same |
| FCNR(B) account | Yes, for up to two residential properties | Same |
| NRO account | Not on that basis. NRO balances can be remitted up to USD 1 million per financial year along with other eligible assets | RBI NRI accounts FAQ |
So if there's any chance you'll want the money abroad when you sell, pay from NRE, FCNR(B) or fresh remittance, and keep every bank statement.
The money-route map: decide before you pay a rupee
Here's the framework we walk every NRI buyer through. Put each payment into one of three envelopes, before the token, and keep a running ledger.
- Repatriable envelope. Down payment, instalments and charges paid by fresh remittance or from NRE / FCNR(B). This is what the RBI's repatriation conditions look at.
- NRO envelope. Anything paid from Indian income such as rent or deposits. Fine to use, but think of the exit as the USD 1 million-a-year NRO route, not the property route.
- Loan envelope. The part your Indian lender pays. Note which account you repay EMIs from.
The ledger is a simple sheet: date, amount, what it paid for, which account, bank reference. It takes ten minutes a month. When you sell, often 10 or 15 years later, it's the difference between a clean remittance and months of reconstructing statements. How the loan envelope is treated at repatriation isn't spelled out in the RBI FAQ, so ask your CA when you set it up.
FEMA and repatriation points are general information. Confirm with your CA and bank.
How does a power of attorney work for NRIs in Karnataka?
If you can't be in Bengaluru for registration, a person you trust can present the documents using your power of attorney (POA). Three rules matter.
1. Who can authenticate it abroad. Under Section 33(1)(c) of the Registration Act 1908, if you live outside India when you sign, the POA is recognised for registration if it's executed before and authenticated by a notary public, a court, judge or magistrate, an Indian consul or vice-consul, or a representative of the Central Government (Registration Act, India Code). Many NRIs sign at the Indian embassy or consulate. Your lawyer will tell you whether the sub-registrar also expects an apostille for a notarised POA.
2. Stamp it within three months. A document signed only outside India may be stamped within three months after it's first received in Karnataka (Karnataka Stamp Act s.18, official copy). Courier it early, and have your holder get it stamped promptly. Don't let it sit in a drawer.
3. Word it narrowly. Stamp duty on a POA depends on what it allows:
| POA type (Stamp Act, Art. 41) | Stamp duty | Source |
|---|---|---|
| Solely to register documents for a single transaction | ₹500 | Art. 41(a), as amended by Act 4 of 2024 |
| One or more persons to act in a single transaction | ₹500 | Art. 41(b), same |
| Up to five persons, more than one transaction or general | ₹500 | Art. 41(c), same |
| Given for consideration or coupled with interest, and authorising the holder to sell immovable property | Same as a conveyance under Art. 20(1) | Art. 41(e) |
For buying, you want a specific POA for this one flat: sign the agreement, pay from named accounts, present the sale deed for registration. It costs ₹500 and limits your risk. A wide general POA gives someone a lot of power over your affairs for no extra benefit.
On Kaveri 2.0, uploading the GPA or special POA is mandatory where one is used, and documents must be uploaded from the same login that created the application (IGR Kaveri 2.0 FAQ). Decide early whether you or your holder will create the application. Our Kaveri 2.0 registration guide shows each screen. For a live walkthrough of buying from the US without travelling, see our answer on buying in Bengaluru from the US through a POA.
POA points are general information. Have a property lawyer draft and check your POA before you sign it.
What TDS applies when an NRI buys property in 2026?
It depends on the seller, not on you. And the law changed on 1 April 2026, when the Income-tax Act, 2025 replaced the 1961 Act (PIB). Many NRI guides still quote Sections 194-IA and 195. Those are the old numbers.
| You're buying from | TDS | Where it sits now | Threshold |
|---|---|---|---|
| A resident (including a builder) | 1% of price or stamp duty value, whichever is higher | s.393(1), Table serial 3(i); Form 141 | ₹50 lakh or more |
| A non-resident (NRI seller) | At rates in force on the sum chargeable to tax | s.393(2), Table serial 17 | None |
Source: Income Tax Department, Section 393.
Resident seller. You deduct 1% and pay it with Form 141 within 30 days from the end of the month you deduct, then give the seller Form 132 within 15 days after that (Form 141 note). The ₹50 lakh test is on the total across all buyers and sellers, so buying jointly with your spouse doesn't split it.
NRI seller. This is where people get burned. The deduction is on the amount chargeable to tax at the applicable rate, and there's no ₹50 lakh floor. If the seller doesn't produce a certificate for lower deduction from the tax department, your CA will usually deduct conservatively, which can be a large sum. The tax is your responsibility as the buyer. Get the seller's residency status in writing, involve your CA before the agreement, and settle in the agreement who handles any lower-deduction certificate. Under the old Act, a buyer deducting on a non-resident seller needed a TAN; we haven't confirmed the requirement under the 2025 Act, so check with your CA.
Our TDS on property calculator handles the 1% case.
TDS is general information. Confirm with your CA.
Can an NRI get a home loan for a Bengaluru flat?
Yes. Under the FEMA (Borrowing and Lending) Regulations 2018, a bank can lend to an NRI or OCI for buying a home in India, and so can a registered NBFC or housing finance company, under RBI's terms (RBI, FEMA 3(R)/2018-RB, amended to 16 Feb 2026).
What we know from RBI material:
- Same LTV caps as residents. 90% up to ₹30 lakh, 80% from ₹30 to ₹75 lakh, 75% above, and stamp duty and registration can't be included in the financed cost above ₹10 lakh (RBI Master Circular on Housing Finance).
- Repayment channels. RBI's housing-loan rules for NRIs have allowed EMIs by inward remittance, from NRE, FCNR(B) or NRO accounts, or from rent earned on the property, and since 2004, by close relatives in India paying directly into the loan account (RBI A.P. (DIR) Circular 93, 2004). Confirm the current position with your lender, since that circular predates the 2018 regulations.
- The loan can't be credited to your NRE or FCNR account. It goes to the seller or builder.
Lenders add their own conditions on documents from abroad, income proof and co-applicants. Ask two or three lenders for their NRI checklist before you book, and start any overseas attestation early.
How much does an NRI need in cash? Two worked examples
Illustrative only, not project prices. Both are in the Greater Bengaluru Area, with the largest loan RBI allows, a ₹500 POA, and government charges at 7.6% of market value (5% stamp duty, 10% cess and 2% surcharge on the duty, 2% registration) as verified on official sources on 18 Oct 2026. The full breakdown is in our pillar on the total cost of a flat in Bengaluru.
Example 1: ₹1.2 crore under-construction flat from a resident builder
| Line | Amount |
|---|---|
| Government charges, 7.6% | ₹9,12,000 |
| GST, 5% | ₹6,00,000 |
| Loan, 75% | ₹90,00,000 |
| Down payment | ₹30,00,000 |
| Mortgage stamp duty, 0.5% of loan | ₹45,000 |
| POA stamp duty | ₹500 |
| Cash before extras and lender fees | ₹45,57,500 (38% of price) |
| TDS, 1% (₹1,20,000) | Not extra; deducted from what you pay the builder |
Example 2: ₹90 lakh ready resale flat from a resident seller
| Line | Amount |
|---|---|
| Government charges, 7.6% | ₹6,84,000 |
| GST | ₹0 |
| Loan, 80% (₹72 lakh, inside the ₹30–75 lakh band) | ₹72,00,000 |
| Down payment | ₹18,00,000 |
| Mortgage stamp duty, 0.5% of loan | ₹36,000 |
| POA stamp duty | ₹500 |
| Cash before extras | ₹25,20,500 (28% of price) |
| TDS, 1% (₹90,000) | Not extra |
Put every line of the "cash" figure into your repatriable envelope if you can. If the same ₹90 lakh flat were bought from an NRI seller, the TDS line would be calculated differently and could be far larger; your CA has to work it out from the seller's gain.
Run your own numbers on the Bengaluru property buying cost calculator or the stamp duty and registration calculator.
Can NRIs repatriate the money when they sell?
Yes, if you meet the RBI's conditions. Sale proceeds can go abroad when the property was bought in line with FEMA and paid for in foreign exchange through banking channels or from FCNR or NRE funds. For residential property, that's limited to two properties (RBI FAQ, Q7). There's also a separate USD 1 million per financial year route under the Remittance of Assets Regulations 2016 for specified cases, such as inherited property.
In practice:
- Keep the ledger from the money-route map, plus bank certificates for each remittance.
- If you'll own more than two homes, choose which two you'd want to repatriate from and fund them through the repatriable envelope.
- Sort out the tax on the sale before you sell. The bank will need the tax paperwork before the money leaves.
What does an NRI need to do differently, step by step?
| Stage | What's different for an NRI |
|---|---|
| Before shortlisting | Check your PAN details; pick NRE / FCNR(B) / remittance as your route |
| Shortlisting | Do RERA and document checks remotely; our guide to checking any project on RERA Karnataka shows how |
| Before token | Lawyer reviews title; confirm e-Khata exists (needed for registration since 30 Sep 2024, per The Hindu); see our token checklist |
| Token and agreement | Max 10% before a registered agreement (RERA s.13(1), MoHUA RERA FAQ); pay from your chosen account |
| POA | Sign before a consul or notary; courier; stamp within three months |
| Loan | NRI checklist from the lender; overseas attestation started early |
| TDS | 1% to a resident seller via Form 141; CA-led for an NRI seller |
| Registration | You or your POA holder on Kaveri 2.0, then the sub-registrar office |
| After | Khata transfer, utilities, rent into NRO if you let it out; keep the ledger |
What mistakes do NRI buyers make?
- Paying the token from an NRO account by habit, then wanting the sale money abroad later.
- Following a guide that still quotes Sections 194-IA and 195. The sections and forms changed on 1 April 2026.
- Treating an NRI seller like a resident seller and deducting only 1%.
- Signing a general POA "to be safe". A specific POA does the job for ₹500 and limits risk.
- Letting the POA sit for months after it reaches India, past the three-month stamping window.
- Buying "farm plots" on the city's edge. Agricultural land is off-limits to NRIs by purchase.
- Assuming the bank will fund stamp duty. RBI says it can't, above ₹10 lakh.
- Relying on the builder's lawyer. Get your own, especially when you can't visit.
What to do if...
...your POA holder can't make the registration slot? Kaveri lets you reschedule; slots can be moved free once 24 hours have passed since booking (IGR Kaveri FAQ). Book only when the holder is sure.
...you've already paid part from NRO? Nothing's wrong with that. Record it in your ledger and fund the rest through NRE or remittance if repatriation matters to you.
...the seller turns out to be an NRI after you've agreed a price? Pause before registration and bring in your CA. The TDS changes completely.
...you're moving back to India soon? Your residential status for tax and FEMA can change. Plan the purchase timing and the payment accounts with your CA.
...your spouse is a foreign national? Under Rule 25, a non-NRI spouse can acquire one property jointly with you. Check the conditions with your lawyer.
...you want to buy land to build on? Check it's not agricultural and that conversion and layout approvals are in place first.
NRI buyer checklist
- [ ] PAN details current
- [ ] Payment route chosen: NRE / FCNR(B) / fresh remittance (or NRO, knowing the exit)
- [ ] Ledger set up for every payment
- [ ] Property type allowed (not agricultural, farmhouse or plantation)
- [ ] RERA registration and documents downloaded and sent to your lawyer
- [ ] e-Khata confirmed
- [ ] Specific POA drafted by a lawyer, signed before a consul or notary, stamped within three months
- [ ] Seller's residency status in writing; CA engaged if the seller is an NRI
- [ ] Lender's NRI document checklist; overseas attestation started
- [ ] Cash-to-keys worked out, including GST and 0.5% mortgage stamp duty
- [ ] Token within 10% until the agreement is registered
- [ ] Form 141 diary date if buying from a resident at ₹50 lakh or more
Frequently asked questions
Yes. Under Rule 24 of the FEMA Non-Debt Instruments Rules 2019, NRIs and OCIs can buy residential and commercial property in India without RBI approval and with no limit on numbers. Agricultural land, farmhouses and plantations can't be bought, though they can be inherited.
Pay by fresh remittance or from an NRE or FCNR(B) account if you may want sale proceeds abroad later. RBI allows repatriation of sale proceeds for up to two residential properties paid for this way. NRO funds can be used too, but their exit is the NRO route of up to USD 1 million a year.
Yes, through a power of attorney. Under Section 33 of the Registration Act, a POA signed abroad is recognised if executed before and authenticated by a notary, court, Indian consul or vice-consul. Stamp it in Karnataka within three months of it arriving, and upload it on Kaveri 2.0.
A POA solely for registering documents in a single transaction, or for one transaction, carries ₹500 under Article 41 of the Karnataka Stamp Act, as amended in 2024. A POA given for consideration or coupled with interest that authorises sale of property is charged like a conveyance.
If the seller is a resident, 1% of the price or stamp duty value, whichever is higher, when either is ₹50 lakh or more, under Section 393(1) of the Income-tax Act, 2025, filed on Form 141. If the seller is an NRI, TDS is at rates in force on the taxable amount under Section 393(2), with no threshold. Confirm with your CA.
Yes. FEMA's Borrowing and Lending Regulations 2018 let banks, NBFCs and housing finance companies lend to NRIs and OCIs for a home in India. The same RBI loan-to-value caps apply: 90% up to ₹30 lakh, 80% up to ₹75 lakh and 75% above. Each lender sets its own document rules.
If the flat was bought under FEMA and paid for by remittance or from NRE or FCNR funds, RBI allows the sale proceeds to be repatriated, for up to two residential properties. NRO balances can be remitted up to USD 1 million per financial year. Tax must be settled first; ask your CA.
No. Stamp duty and registration don't depend on residency. A resale flat or a new flat above ₹45 lakh carries 7.6% of market value in the Greater Bengaluru Area: 5% duty, 10% cess and 2% surcharge on the duty, and 2% registration. First-sale flats up to ₹45 lakh pay less.
CA note: FEMA, TDS, repatriation and loan points on this page are general information, not tax advice. Confirm with your CA and your bank for your situation.
Lawyer note: Property eligibility, power of attorney, registration and title points are general information, not legal advice. Have a property lawyer draft and check your documents before you sign, pay or register.
Sources
Checked 18–19 Oct 2026 unless marked.
- RBI, FAQs on acquisition of immovable property by NRIs/OCIs (NDI Rules r.24, r.25; repatriation): https://www.rbi.org.in/commonperson/English/scripts/FAQs.aspx?Id=1855
- RBI, FAQs on NRI accounts (NRO remittance up to USD 1 million per FY): https://www.rbi.org.in/commonPerson/english/Scripts/FAQs.aspx?Id=3
- RBI, FEMA (Borrowing and Lending) Regulations 2018, amended to 16 Feb 2026: https://rbi.org.in/Scripts/BS_FemaNotifications.aspx?Id=11441
- RBI, A.P. (DIR Series) Circular No. 93, 25 May 2004 (NRI housing loan repayment): https://rbi.org.in/Scripts/NotificationUser.aspx?Id=1638&Mode=0
- RBI, earlier notification on rupee housing loans to NRIs (loan not to be credited to NRE/FCNR): https://rbi.org.in/Scripts/NotificationUser.aspx?Id=158&Mode=0
- RBI Master Circular on Housing Finance, 1 Apr 2025: https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=12824
- Registration Act 1908, s.33, India Code: https://www.indiacode.nic.in/bitstream/123456789/15937/1/the_registration_act%2C1908.pdf
- Karnataka Stamp Act 1957, official DPAL copy (s.18, Art. 20, Art. 41): https://dpal.karnataka.gov.in/storage/pdf-files/34%20of%201957%28E%29.pdf
- Karnataka Stamp (Amendment) Act, Act 4 of 2024 (Art. 41 ₹500; Art. 6 mortgage 0.5%): https://dpal.karnataka.gov.in/storage/pdf-files/04of2024Stamp(E).pdf
- Greater Bengaluru Governance Act 2024, s.170: https://dpal.karnataka.gov.in/uploads/media_to_upload1750663489.pdf
- IGR Karnataka, Table of Registration Fees: https://igr.karnataka.gov.in/storage/pdf-files/RegistrationFee.pdf
- IGR Karnataka, Kaveri 2.0 FAQs: https://igr.karnataka.gov.in/new-page/Kaveri%202%20Related%20FAQs/en
- Income Tax Department, Section 393: https://www.incometaxindia.gov.in/w/section-393-6
- Income Tax Department, Form 141 note: https://www.incometaxindia.gov.in/documents/d/guest/fn-141
- PIB, Income-tax Act 2025 in force 1 Apr 2026: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2248005&lang=1®=3
- GST Council, FAQ on real estate: https://www.gstcouncil.gov.in/sites/default/files/2024-02/faq-real-estate-sector.pdf
- MoHUA, RERA FAQ (s.13): https://www.mohua.gov.in/static/uploads/2025/12/542144159b61c980253a694f478d3a5d.pdf
- The Hindu, e-Khata mandatory from 30 Sep 2024 (news): https://www.thehindu.com/news/cities/bangalore/e-khata-is-mandatory-from-september-30-krishna-byre-gowda/article68691510.ece
