Bangalore is one of the most popular cities in India for non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) to buy property, whether as a future home, a family residence or an investment. The process is similar to a resident’s purchase, but there are extra rules on what you can buy, how you pay and how you sign documents from abroad. This guide explains them.
What NRIs and OCIs Can and Cannot Buy
Under India’s foreign exchange rules (FEMA), NRIs and OCIs can buy residential and commercial property in India without special permission from the Reserve Bank of India. There is no limit on the number of such properties.
They cannot buy agricultural land, plantation property or a farmhouse, except by inheritance or with specific approval. In Bangalore this matters because many layouts on the city’s edge stand on land that was agricultural until recently. Your lawyer should check that the land has been properly converted to non-agricultural use before you buy a plot.
How to Pay
Payment must come through normal banking channels in India, from an NRE, NRO or FCNR account, or by inward remittance from abroad. Payment in foreign currency notes or travellers’ cheques is not allowed. NRIs can also take home loans from Indian banks, repaid from these accounts or from rental income.
Keep a clear record of every payment, including bank advice for inward remittances. You will need it later if you want to send the sale proceeds back abroad.
Signing Documents From Abroad
You do not need to be in Bangalore to buy. Many NRIs appoint a trusted relative or friend in India through a power of attorney (POA) to sign the sale deed and attend registration. A POA signed abroad is usually executed before an Indian embassy or consulate, or notarised and apostilled. Once received in India, it generally has to be stamped in Karnataka within three months. Read our guide to power of attorney for property registration.
Use a specific POA limited to the transaction, not an open-ended general POA. Revoke it in writing once the purchase is complete.
Due Diligence From a Distance
Distance makes due diligence more important, not less. NRI buyers are more often targeted by fraudulent sellers, fake documents and builders who overpromise. Before paying any advance, have a lawyer in Bangalore check the title, encumbrance certificate, khata or e-Khata, approvals and RERA registration, and get a written legal opinion. Ask for scanned copies to be shared online so you can follow the process yourself.
Buying From an NRI Seller: TDS
If the seller is an NRI, the buyer must deduct tax at source (TDS) from the payment at the higher rates that apply to non-resident sellers, and deposit it with the government. The buyer needs a TAN for this. The seller can apply to the income tax department for a certificate allowing a lower deduction. Get advice from a chartered accountant on the current rates and process before you pay.
Selling and Repatriation
When an NRI later sells the property, the proceeds can be sent abroad within limits. For property bought with foreign exchange or NRE funds, the amount originally paid can generally be repatriated for up to two residential properties. Other sale proceeds credited to an NRO account can be repatriated within an annual limit. Keep your purchase records, tax returns and bank certificates ready, as the bank will ask for them.
Frequently Asked Questions
Can an OCI buy property in Bangalore?
Yes. OCIs, like NRIs, can buy residential and commercial property in India. They cannot buy agricultural land, plantation property or a farmhouse except by inheritance.
Do I need to come to Bangalore to register the purchase?
No. You can appoint someone in India through a properly executed power of attorney to sign and register the sale deed on your behalf.
Can I get a home loan as an NRI?
Yes. Many Indian banks offer home loans to NRIs, repaid from NRE or NRO accounts.
Is it safe to buy a plot on the outskirts of Bangalore as an NRI?
Only if the land has been properly converted from agricultural use and the layout is approved. NRIs cannot buy agricultural land, so these checks are essential.
About this guide: Prepared by the Best Property & Civil Lawyers in Bangalore editorial team from the relevant statutes, court judgments and official Karnataka sources, and reviewed in November 2026. Fees and procedures change – confirm current figures before acting. This is general information, not legal advice. Read our editorial policy.
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