Buying property in Bengaluru as an NRI: a plain guide

Buying a home in Bengaluru while living abroad is common and perfectly legal. It mostly comes down to getting four things right: what you're allowed to buy, how you pay, who signs for you, and the tax.

What you can buy

NRIs and OCI cardholders can buy residential and commercial property in India without special permission. You can't buy agricultural land, plantations or farmhouses (unless you inherit them). There is no limit on the number of homes you can buy.

How you pay

Payments must go through normal banking channels — money sent from abroad, or from your NRE, NRO or FCNR account in India. Paying from abroad or from an NRE account keeps it simpler to take the money back out later. You can also take a home loan from an Indian bank as an NRI.

Who signs for you

If you can't be in India for the signing and registration, you can give someone you trust a specific Power of Attorney for that one property. Keep it narrow: it should allow signing the agreement and sale deed and appearing at the Sub-Registrar — nothing more.

A POA signed abroad needs to be attested at the Indian embassy or consulate (or apostilled), and then stamped in Karnataka within three months of it arriving in India.

Tax to plan for

• Buying from a resident seller: you deduct 1% TDS when the price is ₹50 lakh or more.
• Buying from an NRI seller: TDS is deducted on the full sale price at the capital gains tax rate (for a property held more than two years, 12.5% plus surcharge and cess), not 1%, and there is no ₹50 lakh threshold. You'll need a TAN to deposit it; the PAN-only route introduced on 1 October 2026 is for resident individual and HUF buyers. If the seller's actual gain is small, they can apply to the Income Tax Department for a lower-deduction certificate before the sale. See TDS when buying from an NRI.
• You'll need a PAN to register the purchase.

Taking money back out

If you paid from abroad or from an NRE account, you can usually repatriate the original investment for up to two residential properties. Other sale proceeds can be repatriated up to USD 1 million a year from an NRO account. Your bank will ask for a remittance declaration and a chartered accountant's certificate (Forms 15CA and 15CB under the old Income-tax Act; the forms were renumbered when the Income-tax Act, 2025 took effect on 1 April 2026).

Costs to budget for

On top of the price, budget for stamp duty and registration. In Karnataka, stamp duty on most homes above ₹45 lakh is 5%, plus a small cess and surcharge in Bengaluru, and the registration fee has been 2% since 31 August 2025. Both are charged on the higher of the sale price and the government's guidance value. Together that comes to roughly 7.5% of the property's value. Add GST on under-construction homes (usually 5%), legal fees, and the cost of stamping your Power of Attorney. Ask your lawyer for the exact figure before you agree a price. Our stamp duty guide has worked examples.

Documents to have ready

• Your passport, and your OCI card if you have one
• Your PAN card (apply early if you don't have one; it takes a few weeks)
• Proof of your overseas address
• Bank statements showing payments from abroad or from your NRE, NRO or FCNR account, so the money trail is clear when you sell
• The attested and stamped Power of Attorney, if someone is signing for you

Seeing the property

Ask for a live, unedited video walkthrough of the actual unit — not a sample flat — and a written site report. A good representative will point the camera wherever you ask.

Rules and tax rates change, so confirm the details for your situation with a chartered accountant before you commit. See how we work with NRI buyers.