Who can buy
- NRIs and OCI cardholders can buy residential and commercial property in India without special permission.
- They can’t buy agricultural land, plantations or farmhouses (except by inheritance, or in some cases a gift from a relative).
- Foreign nationals living outside India, who aren’t of Indian origin, generally can’t buy property in India. They can inherit it or lease it for up to five years.
- Foreign nationals resident in India have their own rules, and citizens of some neighbouring countries need special RBI permission.
How to pay
Pay through normal banking channels: an inward remittance from abroad or your NRE, FCNR or NRO account. Don’t pay in cash or foreign currency notes. Keep every bank record. You’ll need them when you sell.
Checklist before you buy
- RERA registration. New projects must be registered with the state’s Real Estate Regulatory Authority. Check the project on the state RERA website, including its approvals and completion date.
- Title search. Have a local property lawyer check ownership history, usually going back many years, and confirm there are no loans or disputes.
- Approvals. Building plan approval, occupancy certificate (for ready homes) and society or association documents.
- Costs beyond the price. Stamp duty and registration (set by each state), GST on under-construction homes, maintenance deposits and parking.
- Power of attorney. If you can’t be there in person, you can give a specific power of attorney to someone you trust. Get it made by a lawyer and keep it narrow.
Buying from an NRI seller
If you buy from a seller who’s an NRI, you (the buyer) have to deduct tax at source and pay it to the government before paying them. This used to need a TAN registration. From 1 October 2026 a simpler PAN-based process is meant to replace it, so check the current rules when you buy. The seller can apply for a lower deduction certificate. Ask your lawyer or chartered accountant to handle it.
Renting it out
Rent goes into your NRO account and tenants may need to deduct tax. Use a written rental agreement and a local property manager.
Selling and sending the money abroad
- Sale proceeds can usually be repatriated up to the amount you originally paid in foreign exchange, for up to two residential properties. You’ll need proof of the original payments.
- Anything more goes through your NRO account and the USD 1 million a year limit.
- Capital gains tax applies in India and tax may be deducted at source.
Common traps
- Buying on the strength of a WhatsApp video and a relative’s visit.
- Paying a large share of the price before registration.
- Under-construction projects with no RERA registration, or long delays.
- “Power of attorney sales” that don’t actually transfer ownership.
Official sources: the Reserve Bank of India and your state’s RERA website.
General information only, not legal, tax or financial advice. Rules change. Check the official source or a qualified professional before you act.
