A complete 2026 guide for NRIs buying property in Bangalore - what you can and can't buy under FEMA, funding through NRE/NRO accounts, TDS, repatriation limits and the power of attorney process.

What NRIs can and cannot buy

Under FEMA, NRIs and OCIs can freely buy residential and commercial property in India without RBI approval.

  • NRIs cannot buy agricultural land, plantation property or farmhouses directly - these can only be acquired via inheritance or gift from a resident Indian relative.
  • There is no limit on the number of residential/commercial properties an NRI can own.
  • FEMA rules for NRI property purchase remained unchanged in 2026.

How to fund the purchase

Payments must be made in Indian rupees through normal banking channels - via an NRE, NRO or FCNR account.

  • Funds cannot be paid in foreign currency cash; use inward remittance or Indian accounts.
  • NRIs are eligible for home loans from Indian banks (typically funding up to ~75-80% of value), with EMIs paid from NRE/NRO accounts or rental income.
  • Keep records of inward remittance - they matter for future repatriation.

Repatriation rules on a future sale

An NRI can repatriate up to USD 1 million per financial year (April-March) from the NRO account, subject to compliance.

  • Sale proceeds of up to two residential properties originally bought with inward remittance/NRE funds can be repatriated via the NRE route.
  • Sale proceeds must first be routed to an NRO account before repatriation within the annual cap.
  • Forms 15CA (self-declaration) and 15CB (CA certificate) are required to remit sale proceeds abroad.

Tax and TDS to plan for

When an NRI sells, the buyer must deduct TDS - for long-term capital gains (property held over 24 months) TDS is 12.5% plus surcharge and cess (2026 rate; verify current rules).

  • NRI sellers can apply for a Lower/Nil TDS certificate (Form 13) from the Income Tax Department to avoid excess deduction.
  • Rental income earned in India is taxable in India; a standard 30% deduction and municipal taxes apply as usual.
  • Consult a CA for DTAA relief between India and your country of residence.

Power of Attorney and remote purchase

NRIs unable to be present can execute a Power of Attorney to a trusted representative in India for registration and formalities.

  • A POA executed abroad should be signed before an Indian consulate/notary (or apostilled), then adjudicated/stamped in India.
  • Use a specific POA limited to the transaction rather than a broad general POA, and register it where required.
  • Verify the POA holder's authority carefully - misuse is a known fraud risk.

Bangalore-specific due diligence for NRIs

Insist on A-Khata / e-Khata, RERA registration (rera.karnataka.gov.in) and Occupancy Certificate.

  • Pull a 30-year Encumbrance Certificate via Kaveri Online and get an independent title-search legal opinion.
  • Prefer reputed developers and RERA-registered projects to reduce delay and delivery risk when buying remotely.
  • Keep PAN active and file returns in India for smooth TDS credit and repatriation.