NRIs can buy residential and commercial property in India freely. The complications are practical rather than regulatory, and most are solvable with preparation.
What you can and cannot buy
Residential and commercial property: permitted without restriction. Agricultural land, plantation property and farmhouses: not permitted for purchase, though they can be inherited.
Banking arrangements
You will need an NRE or NRO account. Payment for property must come through banking channels — NRE, NRO or FCNR — never by traveller's cheque or foreign currency.
The distinction matters at sale. Funds from an NRE account are more readily repatriable; NRO has annual limits and additional documentation.
Home loans
Indian banks lend to NRIs, typically at slightly different terms. Expect a lower loan-to-value ratio and a shorter tenure than a resident would get. You will need income documents from your country of residence, often attested, and usually a resident co-applicant or local point of contact.
Power of attorney
The single most useful thing to arrange. A properly drafted PoA lets someone in India execute documents on your behalf so you do not need to fly back for registration.
Get it drafted by an Indian lawyer, executed before the Indian consulate in your country, and then adjudicated and stamped in India within the required period. A generic PoA downloaded online frequently fails at the Sub-Registrar's office.
Keep the scope narrow — this specific property, these specific acts.
Taxation
TDS on purchase. If you buy from a resident, standard TDS rules apply. If you buy from another NRI, the rate is materially higher and the compliance more involved.
Rental income is taxable in India and must be declared.
Capital gains on sale attract TDS at a higher rate for NRI sellers, often recoverable through a lower-deduction certificate obtained in advance.
Double taxation treaties may provide relief in your country of residence. Speak to an advisor in both jurisdictions.
Documentation to keep
PAN card — mandatory. Passport and visa copies. Proof of NRI status. Every payment record showing funds routed through banking channels. You will need these years later at sale.
Remote management
Decide before buying who will handle handover, snagging, meter transfers, society formalities and any tenancy. A relative with good intentions and no time is a common failure point.
The most common mistake
Buying on a two-week visit under family pressure without independent legal verification. Distance makes due diligence harder, which is exactly why it deserves more attention, not less.
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