Can NRIs buy property in India?

Yes, absolutely! If you're a Non-Resident Indian considering property investment back home, you're in good company. NRI buying property in India has grown significantly, driven by emotional ties, attractive returns, and retirement planning.

This guide answers your key questions: can NRI purchase property in India, can NRI buy land in India, can NRI buy property in India without visiting, and how can an NRI buy a property in India.

Who is an NRI?

An NRI (Non-Resident Indian) is an Indian citizen residing outside India for more than 182 days in a financial year (as per the Income Tax Act, 1961).

Under FEMA, the definition also considers the person’s intention to stay abroad for employment or business.

Related categories:

• PIO (Person of Indian Origin) – of Indian ancestry, holding foreign citizenship.
• OCI (Overseas Citizen of India) – enjoys most rights like NRIs, except voting and owning agricultural property.

Overview of FEMA (Foreign Exchange Management Act)

The Foreign Exchange Management Act, 1999 (FEMA) regulates cross-border financial and property transactions in India.

It provides the legal framework for NRI buying property in India, simplifying investment procedures while maintaining restrictions on agricultural and plantation lands.

FEMA Guidelines for NRI Buying Property in India

Eligibility Criteria

• Any Indian citizen living abroad and classified as an NRI can buy property in India.
• No RBI approval is required for purchasing residential or commercial property.
• Transactions must comply with FEMA and the RBI’s Master Direction on Acquisition and Transfer of Immovable Property in India (2021 update).

Types of Properties

Allowed (Unlimited):

• Residential: flats, apartments, villas
• Commercial: offices, shops, warehouses

Also, explore residential projects and commercial projects by Kalpataru to find options that match your needs.

Not Allowed:

• Agricultural land (except inheritance)
• Farmhouses (except inheritance)

Requires RBI Approval:

• Plantation properties

Can NRI Buy Land in India?

• Residential Land: YES ✓ NRIs can freely purchase residential plots for construction with no limit on numbers. Always verify land classification before purchase.
• Agricultural Land: NO ✗ Strictly prohibited under FEMA. Exception: You can inherit and retain agricultural land indefinitely.
• Plantation Land: Requires prior RBI approval on case-by-case basis.

Purchase Rules

• All payments must be made in Indian Rupees (INR).
• Funds must come through banking channels (NRE, NRO, or FCNR accounts).
• Cash payments are prohibited.
• Ownership can be individual or joint (with resident Indians or other NRIs).

Can NRI Buy Property Jointly with Resident Indian?

Yes, joint ownership is allowed.

You can co-own property with:

• A resident Indian (spouse, parents, siblings)
• Another NRI or OCI holder

Key points:

• Ownership shares must be mentioned in the sale deed.
• Both parties’ KYC and tax documents are required.
• Joint home loans are also permitted for co-owners.

Inheritance and Gift

• NRIs can inherit any property, including agricultural land, without RBI approval.
• They may receive residential or commercial property as a gift from a relative (as defined under Section 2(77) of the Companies Act).
• Agricultural land, plantation land, or farmhouses cannot be gifted to NRIs.
• Applicable stamp duty and registration charges must be paid.

Rules for PIOs and Specific Countries

• PIOs have the same rights as NRIs for property purchase (except for agricultural land).
• NRIs from Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, and Bhutan require prior RBI permission before buying property in India.

Can NRI Buy Property in India Without Visiting?

Yes, Remote Purchase is Possible

Power of Attorney Process

Grant POA to a trusted resident Indian (family member, friend, or lawyer). The document must be notarised and apostilled.

Your POA holder can:

• Search and select properties
• Negotiate and sign agreements
• Register property at sub-registrar
• Handle all documentation

Virtual Property Viewing

• Use video calls, 360° virtual tours, and developer presentations.
• Request detailed site photos and drone footage for location assessment.

Digital Documentation

• Use e-signatures where permissible.
• Verify property papers through RERA portals and online land records.
• Payments can be made digitally through NRE/NRO accounts.

Precautions When Buying Remotely

Choose only RERA-registered developers, hire an NRI-specialist consultant, engage a local lawyer, and ensure your POA holder is completely trustworthy.

Benefits of NRIs Buying Property in India

• Value for Indian Currency: Favourable exchange rates ($1 = ₹84) give you strong purchasing power.
• High Returns: Capital appreciation averages 8-10% annually in prime locations, with rental yields of 3-5%.
• Simplified Process: No special permissions needed, streamlined documentation, and clear FEMA framework.
• Diverse Options: From ₹30 lakhs budget properties to luxury homes, ready-to-move and under-construction options available.
• Strong Demand: Growing urban population ensures sustained rental and resale opportunities.

Important Points to Consider Before Buying Property in India

Legal Verification

• Verify title deed, ownership chain (30 years), and encumbrance certificate.
• Ensure RERA registration and approved building plans.

Location Analysis

• Assess connectivity, infrastructure, schools, and hospitals.
• Check for future development projects and appreciation potential.

Funding and Finance

• Compare home loan rates across Indian banks.
• Maintain NRE/NRO accounts for all property-related payments.

Developer Credibility

• Review builder’s RERA ID, past projects, and customer feedback.

Tax Implications

1% TDS applies only when buyer is a resident. For non-resident sellers, 20%/30% TDS applies on entire sale consideration, not just the gain, unless lower deduction certificate is obtained.

Documentation Required for Buying Property in India for NRIs

• Personal: Passport, PAN Card, Aadhaar, OCI/PIO Card
• Income: Visa, work permit, salary slips (6 months), ITR, bank statements
• Property: Title deeds, NOCs, encumbrance certificate, approved plans, RERA certificate
• POA: Notarised and apostilled if buying remotely

Tax Implications for Non-resident Indians Buying Property in India

At Purchase

• Stamp Duty: 3–8% (varies by state)
• Registration Fees: Around 1% of property value
• GST: Applicable only on under-construction properties (5% for normal, 1% for affordable housing)

TDS Rates

• Buying: 1% TDS if buying from resident (>₹50 lakh)
• Rental income: 30% TDS
• Selling: 20% TDS on LTCG, 30% on STCG

Capital Gains

• Long-Term Capital Gains (LTCG): 20% with indexation (holding >2 years).
• Short-Term Capital Gains (STCG): Taxed as per individual slab.

Property Tax: Payable annually to municipal authorities.

Funding Options for NRI Property Purchase

• NRE Account: Fully repatriable, tax-free interest
• NRO Account: Limited repatriation ($1M/year), taxable interest
• FCNR Account: Maintains foreign currency, fully repatriable
• Home Loans: 70-80% financing, 1-25 years tenure, EMI through NRE/NRO/FCNR

Repatriation of Funds for NRIs

• Proceeds from up to two residential properties can be repatriated.
• Original investment must be made through banking channels.
• Requires CA certificate (Form 15CA/15CB) and tax clearance.
• Rental income can be repatriated post 30% TDS deduction.

How Can an NRI Buy a Property in India? 12-Step Guide

Follow these steps:

• Confirm NRI status and property restrictions
• Select residential/commercial, new/resale
• Understand FEMA guidelines
• Obtain PAN Card (mandatory)
• Choose financing (70-80% loan available)
• Arrange documents
• Hire NRI-specialist consultant
• Select property based on budget and location
• Verify title deed and RERA registration
• Get NOCs if buying from NRI
• Sign sale agreement
• Register property at sub-registrar office

Can NRI Sell His Property in India?

Yes, NRIs Can Sell Property in India

Can sell residential or commercial properties freely.

Inherited agricultural land can also be sold (with restrictions).

Documents Required for Selling

• Original sale deed, PAN Card, property tax receipts, NOC from society, encumbrance certificate, passport and address proof.

Tax Implications on Sale

• LTCG (>2 years): 20% with indexation.
• STCG (<2 years): Taxed as per income slab.
• Exemptions under Sections 54 and 54F for reinvestment.

TDS on Property Sale by NRI

Buyer must deduct 20% TDS on LTCG or 30% on STCG.

NRI seller can apply for lower TDS certificate from Income Tax Department.

Selling Process for NRIs

List property → negotiate price → sign sale agreement → receive token (10%) → prepare documents → register at sub-registrar → ensure TDS deduction → file tax returns.

Repatriation of Sale Proceeds

Repatriate funds from up to 2 properties with CA certificate (Form 15CA/15CB) and tax clearances. Timeline: 2-4 weeks.

Power of Attorney for Selling

If unable to visit India, grant POA to trusted resident. POA holders can negotiate, sign documents, and attend registration on your behalf.

Timeline for Selling Property

Finding buyer: 1-6 months | Documentation: 1-2 weeks | Registration: 1-2 weeks | Repatriation: 2-4 weeks | Total: 2-8 months

Best Cities in India for NRI Investment

• Tier-1: Mumbai, Delhi NCR, Bengaluru, Chennai high appreciation, strong infrastructure
• Tier-2: Pune, Hyderabad, Ahmedabad, Kochi better affordability, good ROI
• Tier-3: Mysore, Vadodara, Lucknow emerging markets, 3-5% yields

Real Estate Market Trends for NRIs (2025)

NRI investment share projected to hit 20% of total real estate inflows.

Tier-2/3 cities now attract over 40% of new NRI investments.

Rise in luxury housing and green-certified projects.

Digital tools like virtual tours and e-registration simplifying transactions.

Final Word

NRI investment in Indian real estate is no longer complicated. With FEMA and RBI easing procedures, the process is transparent, compliant, and digitally enabled. Whether you wish to own a home, generate rental income, or diversify your assets, India’s real estate market offers unmatched opportunities. Plan carefully, verify documentation, and partner with trusted experts to make your NRI property investment rewarding and secure.

FAQs

Can NRIs buy property in India?

Yes. Under FEMA (Foreign Exchange Management Act, 1999), NRIs can freely buy residential and commercial properties in India. No RBI approval is needed. However, agricultural land, plantation land, and farmhouses cannot be purchased under general permission.

Can NRI buy land in India?

Yes, but only residential or commercial land. Agricultural or plantation land is not allowed. Always check the land type before buying.

Can NRI buy agricultural land in India?

No, NRIs cannot purchase agricultural land. They can only inherit it from family.

Can NRI buy property in India without visiting?

Yes. They can use a Power of Attorney (PoA) to let someone in India handle the process. Virtual tours and digital paperwork make it easy.

Can NRI buy property jointly with resident Indian?

Yes. They can co-own property with resident Indians or other NRIs (like spouse or family). Ownership shares should be mentioned in the sale deed.

Can NRI sell his property in India?

Yes. NRIs can sell their residential or commercial property freely. The buyer deducts TDS (tax) — 20% for long-term and 30% for short-term gains. Sale proceeds from up to two properties can be sent abroad.

How can an NRI buy a property in India?

Basic steps:

• Check eligibility
• Choose a property
• Get a PAN card
• Understand FEMA rules
• Arrange financing (loan up to 80%)
• Verify documents
• Sign and register the property

What are TDS rates for NRIs?

On purchase: 1% (if buying from a resident, above ₹50 lakh)

On rent: 30%

On sale: 20% (long-term) or 30% (short-term)

Can NRIs get home loans?

Yes. Indian banks give 70–80% home loans for 1–25 years.Rates are slightly higher than for residents. EMIs can be paid through NRE/NRO/FCNR accounts.

To understand why land is gaining popularity among investors, read How Land Investment Is Becoming More Prominent in India.