Buying in India, from wherever you are

Under FEMA, a Non-Resident Indian is an Indian citizen resident outside India — broadly, someone who has spent fewer than 182 days in India in the preceding financial year, or who has gone abroad for employment, business or an indefinite stay. A Person of Indian Origin (PIO) and an Overseas Citizen of India (OCI) cardholder have substantially the same property rights as an NRI. Note that the FEMA definition and the Income Tax Act's residency test are not identical, and you can be a resident under one and not the other in the same year.

No. An NRI, PIO or OCI may acquire residential or commercial immovable property in India under the general permission in FEMA — no application to the Reserve Bank is required, and no reporting form needs to be filed for the purchase itself. This is the single most common misconception we correct.

There is no cap on the number of residential or commercial properties an NRI may own in India. What you may not buy is agricultural land, plantation property or a farmhouse — those can only come to you by inheritance, and even then their sale is restricted to a resident Indian.

In Indian rupees only, through normal banking channels: an inward remittance, or funds held in an NRE, NRO or FCNR(B) account. You may not pay in foreign currency inside India, by traveller's cheque, or through a third party's account. Keep the FIRC or the remittance advice for every payment — repatriation later depends on being able to prove how the purchase was funded.

Yes. Most large banks and housing finance companies lend to NRIs at broadly the same rate as residents, typically up to 80% loan-to-value, with a shorter maximum tenure (usually 15–20 years, and capped at your retirement age). EMIs must be paid from an NRE/NRO account or by direct remittance. You will need your passport and visa, an overseas address proof, an employment contract, overseas salary slips and bank statements, and usually a resident co-applicant or a power of attorney holder.

Sale proceeds of up to two residential properties may be repatriated, provided the property was bought in foreign exchange through banking channels or from an NRE/FCNR account, and the amount repatriated does not exceed the amount originally remitted in. Beyond that, up to USD 1 million per financial year may be remitted from your NRO account, with Forms 15CA and 15CB certified by a chartered accountant. Rental income is fully repatriable from an NRO account after tax.

Buying from a resident seller for over ₹50 L: you deduct 1% under Section 194-IA. Buying from an NRI seller: the rate is entirely different — Section 195 applies, and TDS runs at 20% plus surcharge and cess on long-term gains, deducted on the whole consideration unless the seller produces a lower-deduction certificate under Section 197. Buyers who apply the 1% rule to an NRI seller become personally liable for the shortfall plus interest. When you sell, the buyer deducts from your proceeds; apply for the lower-deduction certificate in advance rather than reclaiming a year later.

Execute a specific power of attorney — never a general one — naming the exact property, the exact acts permitted (executing the agreement, presenting for registration, taking possession) and a fixed validity. Sign it before the Indian consulate in your country of residence, or notarise and apostille it under the Hague Convention. On arrival in India it must be adjudicated and stamped within three months. A loosely drafted general PoA is the most common way NRI property gets misappropriated, usually by a relative.

Rental income from Indian property is taxable in India regardless of your residence. You get a 30% standard deduction on net annual value plus the full home loan interest deduction on a let-out property. Your tenant must deduct TDS at 31.2% under Section 195 when paying an NRI landlord — a rule most tenants have never heard of, so put it in the lease. You will usually need to file an Indian return, and you can claim credit in your country of residence under the applicable double taxation avoidance agreement.

Title deeds and the chain of ownership for at least 30 years; an encumbrance certificate confirming no charge sits on the property; the RERA registration and its quarterly filings; the approved building plan and commencement certificate; municipal, electricity, water, pollution and lift clearances; the society bye-laws and any transfer restrictions; and property tax receipts up to date. We commission an independent legal opinion on every NRI transaction we handle, and you get the raw opinion, not a summary.