Buying property in Bengaluru as an NRI: a plain guide
What NRIs can and can't buy, which accounts to pay from, how a Power of Attorney works, and the tax to plan for — without the jargon.
By the Keycroft Realty team · Reviewed 28 August 2026
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: the TDS is much higher and is calculated on the seller's capital gains. You'll need a TAN to deposit it. The seller can apply for a lower-deduction certificate.
- 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, with Forms 15CA and 15CB.
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.
Questions readers ask
Can an NRI take a home loan in India?
Yes. Most Indian banks lend to NRIs for buying a home, with repayments from an NRE or NRO account.
Does my Power of Attorney holder need to be a relative?
No, but it should be someone you trust completely. Keep the POA limited to the one property and the specific acts needed.
Can I rent out the home?
Yes. Rent is taxable in India, and the tenant may need to deduct TDS from rent paid to an NRI owner.
About the authors
Keycroft Realty is a RERA-registered property consultancy in Indiranagar, Bengaluru. We check title, khata and approvals on every property before we recommend it. This article is general information, not legal or tax advice.
