NRI Guide to Buying Property in India — Rules, Checks and Mistakes (2026)

By ResiBuy Research Team · Updated 2026-07-20

NRIs can freely buy residential and commercial property in India without any special permission, paying through Indian banking channels (NRE/NRO accounts or inward remittance) — but cannot buy agricultural land, plantation property or farmhouses. The rules are the easy part. The hard part is that NRIs make every purchase decision at a distance, through intermediaries with their own incentives, which makes NRIs the most systematically targeted buyer segment in Indian real estate. Distance does not reduce the need for due diligence; it multiplies it.

This guide covers what the rules actually are, the money and tax mechanics, and how to run the full verification process remotely without becoming dependent on the people selling to you.

What NRIs can and cannot buy

• Allowed, no permission needed: residential property and commercial property, in any number.
• Not allowed: agricultural land, plantation property, and farmhouses (inheritance and gifts from residents are treated differently from purchase).
• These rules flow from FEMA and its regulations, and apply to NRIs and, in largely similar form, to OCI cardholders.
• Persons of certain nationalities face additional restrictions requiring specific approvals — if that may apply to you, take advice before committing anything.

Paying for the property

• Funds must move through Indian banking channels: inward remittance from abroad, or debit to your NRE, NRO or FCNR account. Cash components — still casually proposed in parts of the market — are both illegal and a permanent stain on the transaction's paper trail.
• Home loans: NRIs are eligible for housing loans from Indian banks and housing finance companies; repayment must also come through those same channels.
• Keep every banking record. Your repatriation rights and your capital-gains computation years later both depend on the money trail you create now.

Repatriation: getting money back out

• Sale proceeds of property bought with repatriable funds (inward remittance / NRE) can generally be repatriated, subject to conditions — including a cap of two residential properties whose sale proceeds may be repatriated.
• Funds in NRO accounts (including rent and sale proceeds routed there) can be remitted up to USD 1 million per financial year, with tax compliance certified in the prescribed forms.
• Rental income is repatriable after tax.
• The practical rule: decide your exit currency at entry. How you fund the purchase determines how freely you can take the money out — structure it deliberately, with your bank in the loop from the start.

Tax essentials

• TDS when an NRI buys from a resident: buyer deducts 1% TDS above the threshold, as any resident buyer would.
• TDS when anyone buys from an NRI seller: the buyer must deduct TDS at the (much higher) rates applicable to the NRI's capital gains — a rule that surprises both sides of the table and is worth knowing even as a buyer, because it shapes resale negotiations later.
• Rental income is taxable in India; a tenant paying rent to an NRI landlord has TDS obligations of their own.
• Capital gains on sale are taxed in India, with treaty relief (DTAA) potentially relevant in your country of residence.
• Rates and thresholds change with Finance Acts — verify current numbers with a CA experienced in NRI taxation before you transact, not after.

The Power of Attorney — used safely

Most NRI purchases execute through a POA holder in India. The POA is where remote purchases are protected or destroyed:

• Use a Special POA, limited to the specific property and specific acts (executing the agreement, registration, taking possession) — not a General POA that hands your legal identity to someone indefinitely.
• Choose the holder for trust, not convenience — a family member over a broker, and never anyone on the seller's side of the transaction.
• Execution from abroad: sign before the Indian consulate (or apostille per your country's process), then have it stamped/adjudicated in India within the required window before use.
• Revoke it in writing when the transaction completes.

Remote due diligence: the NRI-adapted process

Every check in our complete due-diligence checklist applies unchanged — what changes is how you execute it from abroad:

• Do the digital checks yourself. RERA verification, builder track record, court/NCLT searches, price research and satellite-imagery sweeps of the surroundings need no physical presence and no intermediary. Do not outsource the checks that need only a browser.
• Engage your own advocate — found independently, paid by you, reporting to you — for the title search and document verification. Never rely on the developer's "legal team" or the broker's "known lawyer"; their client is the transaction, not you.
• Independent eyes on the ground: a trusted relative, a hired engineer, or a professional inspection service for site visits — with your checklist, at the wrong times (rain, night, peak traffic), photographing what you specify rather than what the site office curates.
• Video calls are better than nothing and worse than everything — a walkthrough streamed by the seller's team shows you a route chosen by the seller's team.
• Verify independently what intermediaries tell you. The pattern in NRI disputes is not exotic fraud; it is ordinary misrepresentation that nobody on the ground had an incentive to correct.

Common mistakes NRIs make

• Buying in "pre-launch" on a relative's or broker's enthusiasm, before RERA registration exists to check.
• Signing a General POA to someone connected to the seller.
• Funding casually and discovering repatriation limits at exit.
• Using the developer's lawyer as their lawyer.
• Skipping the TDS mechanics and inheriting a compliance mess.
• Buying agricultural land through informal structures "everyone uses" — which do not survive scrutiny.
• Treating the annual India visit as due diligence — a curated afternoon at a sales gallery is marketing, not verification.

Questions you should ask before buying

• Is this property residential/commercial (permitted) — and does any nationality-specific restriction apply to me?
• Is the project RERA-registered, and have I verified the promoter's record myself online?
• Who is my advocate, who pays them, and have they done a full title search reporting to me alone?
• Is my POA special, limited, consularised, stamped in India — and held by someone with no stake in the sale?
• How am I funding this, and what does that mean for repatriation when I sell?
• Who has physically verified the site in bad weather and after dark, on my instructions?

Frequently Asked Questions

Can NRIs buy property in India without RBI permission?

Yes. NRIs and OCI cardholders can buy residential and commercial property without any prior permission, paying through Indian banking channels. Agricultural land, plantations and farmhouses cannot be purchased. Citizens of certain countries face additional approval requirements.

Can NRIs buy agricultural land in India?

No — purchase of agricultural land, plantation property and farmhouses is not permitted for NRIs. Inheriting such property, or receiving it as a gift from a resident relative, is treated differently from purchase. Informal workarounds offered in the market do not create valid title and should be refused.

How much money can an NRI repatriate after selling property in India?

Sale proceeds of property bought with repatriable funds can generally be repatriated subject to conditions, capped at two residential properties. Otherwise, up to USD 1 million per financial year can be remitted from NRO balances with tax-compliance certification. Structure the original funding with the exit in mind and involve your bank early.

What is the TDS when buying property from an NRI?

When the seller is an NRI, the buyer must deduct TDS at the rates applicable to the NRI's capital gains — substantially higher than the 1% applicable to resident sellers — and comply with the associated filing. Rates change with Finance Acts, so verify current figures with a chartered accountant before the transaction.

Is a Power of Attorney safe for NRI property purchase?

A limited Special POA — specific to the property and the acts required, executed before the consulate, stamped in India, held by someone independent of the seller, and revoked after completion — is a safe and standard tool. A General POA handed to a broker or the seller's associate is the root cause of a large share of NRI property disputes.

Can NRIs get a home loan in India?

Yes. Indian banks and housing finance companies lend to NRIs for residential purchase, with eligibility based on overseas income. Disbursement and repayment must flow through Indian banking channels (NRE/NRO/inward remittance), consistent with the same rules that govern the purchase itself.

Instead of coordinating a dozen checks across time zones and intermediaries, NRIs can consolidate the location, legal, developer, infrastructure, environmental and price factors for any Indian property into a single property intelligence report — reviewable from anywhere. Generate a Property Report for the property you are considering.