Bangalore continues to be one of the most preferred destinations for Non-Resident Indians (NRIs) investing in real estate. Its strong rental demand, steady appreciation, global connectivity, and transparent RERA-regulated market make it ideal for both end-use and investment.

However, buying property in India as an NRI involves specific legal, financial, and taxation requirements. This guide covers all essential rules, documents, tax implications, and how Owne simplifies the process for NRIs in 2025.

Can NRIs Buy Property in India?

Under FEMA (Foreign Exchange Management Act), NRIs and Persons of Indian Origin (PIOs) can freely purchase immovable property in India.

NRIs Can Buy:
• Residential apartments (ready or under-construction)
• Commercial property (offices, retail spaces)

NRIs Cannot Buy:
• Agricultural land
• Farmhouses
• Plantation property

Most NRIs prefer apartments and villas in Bangalore’s RERA-approved projects.

Why Bangalore Is the Top Choice for NRI Investment

• Strong rental demand from tech workforce
• High appreciation in areas near metro expansion and airport corridor
• Transparent, regulated market under K-RERA
• Excellent global connectivity
• 25–30% of luxury home demand comes from NRIs

Legal Requirements for NRIs

NRIs need the following to purchase property:

• PAN card
• Indian bank account (NRE or NRO)
• KYC documents (passport, visa, overseas address proof)
• Power of Attorney if not physically present
• All payments must be made via banking channels

Taxation Rules for NRIs

TDS on Sale Transactions

If the seller is an NRI, buyers must deduct TDS:
• Long-term gains: 20%
• Short-term gains: slab rate

Tax on Rental Income

Rental income is taxable in India.
TDS at 30% is generally deducted before crediting rent to NRO account.

Capital Gains Tax

• Short-term (held <24 months): taxed at slab rate
• Long-term (held ≥24 months): 12.5% flat or 20% with indexation
• Exemptions available under Sections 54, 54EC, 54F

NRIs may repatriate proceeds after obtaining Form 15CB from a CA.

Documents Required for NRI Property Purchase in Bangalore

Buyer Documents

• Passport and visa
• PAN card
• OCI/PIO card (if applicable)
• Overseas address proof
• NRE/NRO account details
• Power of Attorney (if needed)

Property Documents

• Title deed
• Encumbrance certificate
• Approved plans
• Sale agreement
• RERA registration number
• Occupancy/Completion Certificate

Financing Options for NRIs

NRIs can obtain home loans from Indian banks.
• Repayment via NRE/NRO account or inward remittances
• Loan tenure usually 10–15 years
• Documentation requirements are stricter than for residents

This is why loan-free models like Owne’s rent-to-own are attractive to many NRIs.

How Owne Simplifies NRI Property Purchase

Owne addresses the most common challenges NRIs face:

• No home loan required under rent-to-own
• All properties pre-verified for RERA compliance
• Payments handled through escrow
• Legally registered tri-party agreements
• Remote buying possible via PoA
• NRIs can also co-invest in residential property for 12–15% IRR

Owne makes property purchase more secure, predictable, and convenient for NRIs abroad.

Case Study: NRI Buyer in Dubai

Anita wanted a 3BHK in Sarjapur priced at ₹1.2 crore.

Traditional route:
• ₹30 lakh upfront
• Strict loan documentation
• High EMI of ~₹90,000 per month

Owne route:
• ₹10 lakh entry
• Monthly contribution of ₹45,000
• Ownership built gradually
• Entire process completed remotely through PoA

She avoided loan rejections, high EMIs, and paperwork complexity.

Frequently Asked Questions

1. Can NRIs buy multiple properties in Bangalore?
Yes. There is no limit on the number of residential or commercial properties an NRI can purchase.

2. Do NRIs need RBI approval?
No approval is needed unless buying agricultural or farmhouse property.

3. How is rental income taxed for NRIs?
It is taxed at slab rate, with TDS deducted. NRIs may claim DTAA benefits depending on their country of residence.

4. Can NRIs repatriate sale proceeds abroad?
Yes, through an NRE account after completing tax compliance.

5. How is Owne different from a broker?
Owne provides escrow-backed, registered, and fully verified transactions, unlike unregulated broker-driven sales.

Conclusion

Bangalore remains one of the most attractive and reliable investment destinations for NRIs. However, the process involves legal, financial, and tax complexities that require careful navigation.

Owne simplifies this journey by offering:
• Loan-free rent-to-own solutions
• Fully verified, RERA-compliant properties
• Escrow-backed payments
• End-to-end legal support
• Remote transaction capability

Whether you’re buying for self-use, investment, or long-term wealth creation, Owne provides a secure and transparent path for NRIs.