Buying a Plot in Bangalore from Abroad: The NRI and OCI Guide for 2026

For Indians living abroad, a plot in Bengaluru is often more than an investment. It is a foothold in the city they will one day return to, a legacy for their children, or simply a piece of home. Buying from thousands of kilometres away, however, raises fair questions about rules, payments, taxes and trust. This guide answers them clearly.

This is general information as of October 2026, not legal or tax advice. Rules change, and individual circumstances differ; please consult a chartered accountant and a property lawyer before you commit.

Can NRIs and OCIs buy a plot in India?

Yes. Under India’s foreign exchange rules (FEMA), Non-Resident Indians and Overseas Citizens of India may buy residential and commercial property, including residential plots, under general permission. No approval from the Reserve Bank of India is needed, and there is no limit on the number of properties.

The important exception is agricultural land, plantation property and farmhouses, which NRIs and OCIs cannot buy (though they may inherit them). This is why approved, converted residential plots in a registered layout matter: they are clearly outside the restricted categories.

How to pay

Payments must come through normal banking channels: an inward remittance from abroad, or a debit from your NRE, FCNR(B) or NRO account in India. Travellers’ cheques and foreign currency notes cannot be used. Keep every bank advice and foreign inward remittance record; you will need them when you sell and wish to take the money back out of India.

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Financing a plot from abroad

Several Indian banks and housing finance companies offer loans to NRIs for buying house sites. Terms vary, but they typically require the plot to be in an approved layout and held on ownership basis, a margin of around 25% from the buyer, and tenures of up to 15 years. Approvals such as BIAAPA layout sanction, RERA registration and a clear title are what make a plot bankable, which is why bank-loan eligibility is a useful signal of a project’s paperwork.

Taking money back out: repatriation

If you paid for the property by inward remittance or from NRE or FCNR(B) funds, the sale proceeds can be repatriated up to the amount of foreign exchange you originally brought in, for up to two residential properties. If the purchase was funded from an NRO account, or the property was inherited, proceeds go to your NRO account and up to US$1 million per financial year can be remitted abroad after taxes. There is no minimum holding period.

Tax when you eventually sell

For NRIs, long-term capital gains on property held for more than 24 months are taxed at 12.5% without indexation, plus surcharge and cess, for transfers on or after 23 July 2024. Unlike resident individuals, NRIs do not have the option of the older 20%-with-indexation calculation for properties bought earlier.

When an NRI sells, the buyer must deduct tax at source on the full sale value: 12.5% plus surcharge and cess for long-term gains, or 30% plus surcharge and cess for short-term gains, unless the seller obtains a lower-deduction certificate from the tax department. From 1 October 2026, resident individual buyers can deposit this TDS using their PAN rather than a separate TAN, which makes buying a resale property from an NRI noticeably simpler.

India’s new Income-tax Act 2025 took effect on 1 April 2026. It did not change capital gains rates, but section numbers have changed, so older articles may cite outdated references.

Approvals are not paperwork. For an NRI buyer, they are the asset.

Buying without being in India

Most NRI buyers complete the transaction through a trusted family member or lawyer acting under a power of attorney. Practice generally involves executing the power of attorney before an Indian consulate or with an apostille abroad, then having it stamped in Karnataka after it arrives. Karnataka’s Kaveri 2.0 system has moved much of property registration online, though a visit to the sub-registrar’s office for biometrics is still typically required. Your lawyer can confirm the current procedure for your situation.

A due-diligence checklist for NRI buyers

1. Confirm the land is converted for residential use and the layout is approved by the correct planning authority (for Devanahalli, typically BIAAPA).
2. Verify the project’s registration on the K-RERA portal (rera.karnataka.gov.in) and compare the approved plan with the brochure.
3. Have a lawyer review the title chain and encumbrance certificate.
4. Check that leading banks will lend on the project.
5. Pay only through banking channels and keep every remittance record.
6. Ask for a video walkthrough of your specific plot, its boundaries and the infrastructure in place.
7. Agree a clear power of attorney with a person you trust completely.

How we help NRI plot buyers abroad

Many of our buyers live overseas. For Lake Botanica, our BIAAPA-approved, RERA-registered community of 261 villa plots in North Bangalore, we share every approval and title document for your lawyer’s review, arrange video site walkthroughs at times that suit your time zone, and coordinate with your chosen representative in Bengaluru. Plots have clear titles and are eligible for bank loans, and the land is ready for registration.

Wherever you are, we would be glad to walk you through it. A call or WhatsApp to +91 76767 63011 is the simplest place to start.

Questions NRIs ask about buying plots in India

Sources

• Deutsche Bank India: NRI acquisition and transfer of immovable property
• Business Today: RBI on NRI/OCI property purchases
• Indian Bank: NRI plot loan terms
• Business Today: NRI property tax changes
• Housing.com: LTCG options for residents
• Deccan Herald: Budget 2026 eases TDS compliance on NRI property purchases
• Deccan Chronicle: Income-tax Rules 2026 PAN limits
• Business Today: Income-tax Act 2025 changes
• The Hans India: Paperless registration through Kaveri 2.0