How Can an NRI Buy a Property in India?

How Can an NRI Buy a Property in India? - Namma Family Builder

Buy a Property in India:

  • NRIs are said to be investing more in the real estate sector. As the processes of real estate laws are much simpler, they are investing more than earlier. An NRI person can buy a property in India, it should be residential or commercial only. And they are eligible for home loans.
  • It does not allow the purchase of properties such as farms, plantations, etc., used for agricultural purposes, and only those who have a permanent address in India can purchase these properties. It allows a person of Indian origin residing in another country outside India to purchase the property.

Types Of Properties To Invest

Residential or Commercial Property

  • An NRI can invest in any residential or commercial real estate sector. For that, they do not need to inform the Reserve Bank and do not need to seek any authorization from the Central Bank. They can buy residential or commercial properties as they like on general permission.

Agricultural or Plantation Property

  • An NRI is not allowed to buy agricultural or plantation property in India under the general authorization of the RBI. As a result, an NRI cannot buy a farmhouse in India under the current regulation. And if an NRI person wants to buy farmland or agricultural land in India, they need to get permission from RBI.

Essentials for NRIs to Buy a Property in India

Taxation On NRI Properties In India:

  • After buying a property, an NRI has to pay the necessary property taxes, stamp duty, and registration charges in India. You have to file a tax return for renting out your property.
  • You also have to deduct taxes on the money you earn from the property and pay taxes even if you sell your property. An NRI If an asset is sold before two years it is short-term capital gain and if sold after two years it is long-term capital gain taxed at 2%.
  • If an NRI takes a loan to buy a property in India, he is eligible for repayment of the principal amount and interest amount.

Power Of Attorney:

  • A Power of Attorney is beneficial when you are unable to complete a transaction in India. This is to authorize a third party to purchase property through an NRI in India on behalf of the owner of the property.
  • It is essential to obtain a Power of Attorney (POA) document to avoid all the hassles in the property purchase process.

Payment Method:

  • An NRI has several ways to pay for the property they have purchased. They can make direct deposits into an Indian bank account using regular procedures, and save money in an NRI account that meets the rules of the RBI and the Foreign Expenditure Management Scheme.
  • Foreign currency and checks cannot be used to purchase real estate in India. It is authorized to provide home loans to NRIs abroad for purchase of real estate property and they have to use only Indian rupees for financial transactions.

Home Loan:

NRIs are eligible for home loans of up to 80% of the value of their property like Indian residents. The loan can be repaid in Indian currency only. When an NRI person takes a home loan, the money is directly credited to the developer’s account. Repayment of the loan in foreign currency or check is not acceptable. NRI person home loan The information required to apply is as follows:

  • Xerox of passport and Indian visa. If you have only a foreign passport without an Indian passport, you should apply with a POI card.
  • Latest income certificate, last six months salary slip.
  • Power of Attorney
  • If your parents are Indian citizens, you can apply for an OCI card.
  • Reported to Bureau of Citizenship.

Accounts for NRE and NRO:

  • It will be very helpful if you open NRE and NRO accounts in India. Through an NRE account, you can remit foreign income to India and earn interest income tax-free.
  • Also, you can use an NRO account to manage your sources of income from India. These are where you can deposit foreign dollars into this account to buy real estate property in India.

Documents Required for an NRI to Buy a Property in India:

If an NRI person wants to buy a property in India he has to submit the necessary documents which are:

  • India passport copy and visa
  • Work permit of place of residence
  • Latest Income Tax Return
  • Salary slip for six months
  • PAN card
  • Home Loan Application
  • Address proof or utility bills
  • Current Photograph

Documents for Property Purchased By an NRI in India:

If you buy a property in India, you need to check all the information for that location. The documents to be verified are as follows:

  • Title Deed: This should be in the name of the seller.
  • Approved Plan: Confirm approval with the concerned authority.
  • Building Permit: Check the required permit.
  • Check old title deeds.
  • RERA Registration

 Investing in the real estate sector in one’s home country India is a lifelong goal and desire. So you check all the documents and invest.


Buy a property in India is ambitious and objective for an NRI. Having a home in India is more than a backup. The Foreign Expenditure Management Act allows you to buy residential and business assets as a NRI. Knowing the documents and details of the property makes the process much easier. It is simple to buy assets from an NRI person in India.

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