An NRI buying property in Bangalore needs no RBI approval for a flat, as of September 2026. FEMA lets NRIs and OCI cardholders buy any number of homes, but not farm land. Payment must come through an NRE, NRO or FCNR account or a bank transfer from abroad. Later, sale money for up to 2 homes can go back abroad, within set limits.
Who can buy and what they can buy
Indian law splits overseas buyers into 3 groups. NRIs are Indian citizens who live abroad. OCI cardholders are foreign citizens of Indian origin. Foreign nationals with no Indian origin face much stricter rules than the first 2 groups.
Under FEMA, NRIs and OCIs can buy flats, villas and shops in Bengaluru. There is no cap on the number of homes. You do not need to file anything with the RBI before you buy.
The one big “no” under FEMA is farm land. An NRI or OCI cannot buy agricultural land, plantation property or a farmhouse. An NRI can still inherit such land from a relative. This matters on the Bengaluru fringe, where some plots still carry an agricultural title. Always check the land status for any plot or villa near Sarjapur or Anekal.
| Buyer type | Flat or villa | Shop or office | Farm land or farmhouse |
|---|---|---|---|
| NRI (Indian citizen abroad) | Yes | Yes | No (inherit only) |
| OCI cardholder | Yes | Yes | No (inherit only) |
| Foreign national, no Indian origin | Generally no | Generally no | No |
A flat in a RERA-registered apartment project is the simplest case. The land has already gone through conversion and plan approval. That is one reason many NRIs pick gated projects in Bengaluru.
How to pay: NRE, NRO and FCNR accounts
FEMA sets strict rules on how the money moves. You can pay in 2 ways. The first is a bank transfer from abroad, through normal banking channels. The second is money already in your NRE, NRO or FCNR account in India.
An NRI cannot pay in foreign cash or traveller’s cheques. Keep every payment in your own name, and keep the bank advice for each one.
The account you use matters later, when you sell. Money from an NRE or FCNR account, or a fresh transfer from abroad, counts as foreign funds under FEMA. Money from an NRO account tends to count as rupee income earned in India. The table below compares the 4 routes.
| Account | Source of money | Can the home’s sale money go back abroad? |
|---|---|---|
| NRE | Income earned abroad | Yes, up to the foreign sum paid, for up to 2 homes |
| FCNR | Foreign-currency deposit | Yes, same as NRE |
| NRO | Income earned in India (rent, dividends) | Via NRO, within USD 1 million a year |
| Inward remittance | Fresh transfer from abroad | Yes, same as NRE |
For each transfer from abroad, most banks issue a foreign inward remittance certificate. Keep all of them with your papers, since you may need them 10 or 20 years later when you sell.
Home loans for NRIs
Most large Indian banks and housing finance firms lend to NRIs for a home in Bengaluru. The bank pays the loan out in rupees, to the builder or seller. You pay EMIs from your NRE, NRO or FCNR account or by transfer from abroad.
Banks tend to ask for more papers from NRIs than from residents. Expect to show your passport, visa or work permit, overseas pay slips and bank statements. Some lenders also ask for a co-applicant in India or a power of attorney holder.
Loan limits and rates vary by bank. For an NRI, they also depend on the country of work and the job type. Ask 2 or 3 lenders for a written offer before you book. Many builders list tie-up banks for each project, which can make the paperwork faster.
Power of attorney: buying from abroad
Many NRIs cannot fly to Bengaluru for every step. A power of attorney (POA) lets a trusted person in India sign on your behalf.
You can sign a POA abroad at an Indian embassy or consulate, or before a local notary with an apostille. Once the POA reaches India, you must get it stamped within 3 months. This rule comes from Section 18 of the Indian Stamp Act, 1899. In Bengaluru, the district registrar’s office handles this step.
Karnataka tightened the rules in 2025. Per legal commentators, an amendment to the Registration Act now makes registration compulsory for a POA that allows the sale or transfer of property. So a POA for buying or selling a Bengaluru flat needs more than a stamp. Check the current steps with a local lawyer before you sign.
Use a “special” POA for one clear job, such as buying one named flat. A “general” POA gives wide powers and carries more risk than a special one. Name the flat, the project and the limits of the power, and set an end date 1 or 2 years out.
Taxes: TDS, capital gains and rent
Tax rules changed in 2026. The new Income-tax Act, 2025 took effect on 1 April 2026, and TDS rules now sit under Section 393. Rates and limits below are as of September 2026.
When you buy a new flat. If the price is ₹50 lakh or more, the buyer deducts 1% TDS and pays it to the tax department. This applies to NRI buyers too. On a ₹1 crore home, for example, that is ₹1 lakh. You then pay the seller the rest.
When you sell as an NRI. The rules flip. Your buyer must deduct TDS on the gain, at a higher rate than 1%. For a home held over 24 months, long-term capital gains tax is 12.5%, plus surcharge and cess. For a home held for less, slab rates apply. You can apply to the tax department for a lower-deduction certificate if the TDS would exceed your real tax.
From 1 October 2026, a resident individual buying from an NRI no longer needs a separate TAN for this TDS. They can pay and report it with their PAN on the new challan form. This change comes from the Finance Act, 2026.
When you rent it out. A tenant who pays rent to an NRI must deduct TDS on it. The rate is much higher than for a resident landlord. Many NRIs file a return in India to claim back any extra tax.
| Stage | Who deducts | Rule (as of September 2026) |
|---|---|---|
| Buying a new flat of ₹50 lakh+ | You, the buyer | 1% TDS on the price |
| Selling after 24+ months | Your buyer | 12.5% LTCG, plus surcharge and cess |
| Selling within 24 months | Your buyer | Slab rates on the gain |
| Renting out | Your tenant | TDS at non-resident rates |
This is general information, not legal or tax advice. Tax rules for NRIs changed in both 2024 and 2026. Speak to a chartered accountant who works with NRI clients before you buy or sell.
Repatriation: taking money back abroad
Repatriation means moving money from India to your overseas account. For an NRI selling property, 2 limits apply.
First, the 2-homes rule. If you bought with foreign funds, you can send the sale money abroad for up to 2 homes. The amount you send cannot exceed the foreign exchange you first paid in. Any gain above that goes to your NRO account.
Second, the USD 1 million rule. From an NRO account, you can send up to USD 1 million each financial year, after tax. This covers sale money for a 3rd home, rupee-funded homes and gains above your original sum.
Banks ask for papers before they send money out. Expect a chartered accountant’s certificate, known as Form 15CB, and a declaration in Form 15CA. Keep your buying papers, bank advices and tax receipts together from day 1.
| Rule | Limit (as of September 2026) |
|---|---|
| Homes bought with NRE, FCNR or remittance | Sale money for up to 2 homes, up to the foreign sum paid |
| Other sale money and gains | Via NRO, up to USD 1 million per financial year |
| Papers needed | CA certificate (Form 15CB) and Form 15CA |
A simple NRI buying checklist for Bengaluru
Put these steps in order before you book any flat in Bengaluru.
- Check the project’s RERA number on the Karnataka RERA portal.
- Pick your payment route: NRE, FCNR, NRO or a fresh transfer.
- Get a written home loan offer from 2 or 3 lenders.
- Sign a special POA if you cannot visit, then stamp and register it.
- Ask for a full cost sheet, including GST, stamp duty and deposits. Our stamp duty Bangalore 2026 guide explains the Karnataka rates.
- Deduct 1% TDS if the price is ₹50 lakh or more.
- Keep every bank advice and receipt in one file.
Our guides on apartment maintenance charges and dual plumbing cover the running costs you will pay as an owner. If a relative in Bengaluru will visit for you, share our site visit checklist with them.
Many NRI buyers on Sarjapur Road look at large gated projects near tech parks. Adarsh Welkin Park, in Gattahalli beside Gattahalli Lake, has two RERA-registered phases. You can see both numbers in the RERA section and the full overview on our homepage. Share your details and our relationship manager can answer your questions from abroad.
Get the brochure and price sheet
Considering Adarsh Welkin Park?
Get the official brochure, floor plans and latest price sheet from our relationship manager.
Frequently asked questions
Yes. Under FEMA rules, NRIs and OCI cardholders can buy residential and commercial property in India without RBI approval, as of September 2026. They cannot buy agricultural land, plantation property or farmhouses.
Payment must come through normal banking channels: an inward remittance from abroad, or funds from an NRE, NRO or FCNR account in India. Cash in foreign currency and traveller's cheques are not allowed.
Yes. Most large Indian banks and housing finance firms lend to NRIs for a home. EMIs must come from an NRE, NRO or FCNR account or an inward remittance.
If the home was bought with foreign money, sale proceeds for up to 2 homes can go back abroad, capped at the amount first paid in foreign exchange. Other funds in an NRO account fall under a USD 1 million per financial year limit.
Not always. An NRI can sign a power of attorney abroad for a trusted person in India. It must be stamped within 3 months of reaching India, and property-transfer POAs now also need registration in Karnataka.
Yes. When anyone buys a property of ₹50 lakh or more from a resident seller such as a developer, the buyer deducts 1% TDS. When an NRI is the seller, the buyer deducts a higher rate on the gains.
Published by IamHere Realty, authorised channel partner for Adarsh Welkin Park. Project details are from the developer’s official material; verify every detail with the sales team before you decide.