NRI Buying Property in Bengaluru: FEMA, Payment, Repatriation
Can an NRI buy a Bengaluru flat? See FEMA rules, how to pay, PoA, TDS, repatriation and Bengaluru checks like K-RERA and e-Khata.
Written by
Justin
20 October 2026 · 4 minutes read
NRI Buying Property in Bengaluru: FEMA Rules, Payment and Repatriation
Short version: An NRI or OCI can buy a flat or commercial property in Bengaluru without RBI approval, but not agricultural land, plantations or farmhouses. You pay in rupees through banking channels, never cash. Buying is simple. The funding trail, the TDS and the exit need planning from day one, and Bengaluru has its own checks on land use, registration and khata.
Many NRIs expect a tangle of permissions. For a flat, there isn’t one. The care goes into what you can’t buy, how the money moves and how it comes back out. This guide covers the rules and the Bengaluru checks. For the full tax and repatriation walk-through, see our [India-wide NRI guide].
What can an NRI buy?
Property | NRI/OCI can buy? |
|---|---|
Residential flat, house, plot for building | Yes, no approval, no cap on number or value |
Commercial property | Yes |
Agricultural land | No (inheritance is treated separately) |
Plantation property | No |
Farmhouse | No |
On Bengaluru’s outskirts, plots sold as “farm plots” or “managed farmland” may still be agricultural in the records. The brochure label doesn’t decide that. The RTC (revenue record) does. Check it before you pay a token amount.
How should an NRI pay?
Route | Notes |
|---|---|
NRE account | Foreign earnings brought to India. The cleanest for repatriating later. |
NRO account | Indian income. Outward remittance is capped. |
FCNR(B) deposit | Foreign currency deposits. |
Inward remittance | From your overseas account, in rupees through a bank. |
Cash isn’t allowed. Keep bank certificates for the inward remittance and the account used. Years later, they are what let you prove your money’s source when you sell.
How does repatriation work?
NRE or foreign-funded purchase: you can repatriate the amount you paid from foreign funds, for up to two residential properties, once taxes are cleared.
NRO route: up to USD 1 million per financial year, with tax forms and a CA certificate (Forms 15CA and 15CB).
Money kept in India: not constrained by these caps.
If you may want the money abroad later, fund the purchase from NRE or foreign remittance where possible.
Can I buy without flying to Bengaluru?
Yes, through a power of attorney. Have it notarised in your country of residence, apostilled or attested by the Indian embassy or consulate, and stamped in India as the state requires. Draw it narrowly. Name the property, the transaction and the attorney with full ID details. Use someone you trust completely, and have a property lawyer draft it.
What about tax?
Situation | What happens |
|---|---|
You buy from a resident seller | 1% TDS if the price is above Rs 50 lakh, deposited with a PAN |
You buy from an NRI seller | TDS on the full sale price, 12.5% for long-term holdings plus surcharge and cess. From 1 October 2026, individual and HUF buyers can deposit it with a PAN. |
You sell as an NRI | Your buyer deducts that TDS. A lower deduction certificate can reduce it. |
Long-term gains (over 24 months) are taxed at 12.5% without indexation. The Income-tax Act, 2025 renumbered many sections from 1 April 2026, so ask your CA for current references.
What Bengaluru checks should an NRI run?
K-RERA registration. Verify the project and its validity on the K-RERA portal. See our RERA registered vs approved guide.
Land use zone. Confirm the plot’s zone under the master plan. See our master plan zones guide.
Khata. Prefer an A Khata property, and check the e-Khata. See our B Khata guide if it’s B Khata.
Encumbrance certificate for at least 30 years, from the Kaveri portal.
Approvals. Sanctioned plan, commencement and occupancy certificates, and tax receipts.
Parent documents, reviewed by a Bengaluru property lawyer.
What will it cost to register?
Karnataka’s registration fee is 2% of the property value (doubled from 1% on 31 August 2025), in addition to stamp duty. Check the current stamp duty on the Kaveri portal before you budget.
Your step-by-step plan
Step | What to do |
|---|---|
1 | Confirm the property is residential or commercial, not agricultural |
2 | Check your PAN is linked to your passport/OCI details |
3 | Fund through NRE or inward remittance, and keep records |
4 | Verify K-RERA, land use, khata and title |
5 | Decide on a PoA if you can’t attend |
6 | Map the TDS and repatriation position with your CA |
7 | Register, then update the khata |
Frequently asked questions
Can an NRI buy property in Bengaluru without RBI approval?
Yes, for residential and commercial property. Agricultural land, plantations and farmhouses are not allowed.
How does an NRI pay for property in India?
In rupees through banking channels, from NRE, NRO or FCNR(B) accounts or inward remittance. No cash.
Can an NRI repatriate sale proceeds?
Yes, within limits. Foreign-funded purchases can repatriate the original amount for up to two residential properties. NRO funds are capped at USD 1 million a year.
Can an NRI buy without travelling?
Yes, through a properly executed power of attorney.
Does an NRI pay higher TDS?
When the seller is an NRI, TDS is on the full sale price at much higher rates than the 1% for resident sellers. A lower deduction certificate can help.
Do OCI cardholders follow the same rules?
Generally yes. OCIs are treated like NRIs for buying residential and commercial property.