From eligibility and funding to taxes and repatriation — everything you need before you invest.
NRI remittances into Indian real estate (2024)
Countries covered by India's DTAA tax relief
Long-term capital gains tax rate with indexation
Max repatriation allowed per financial year
Who Can Invest?
Three categories of overseas Indians can purchase property in India, each with slightly different rights:
Non-Resident Indian
An Indian citizen residing outside India for more than 182 days in a financial year. Has the broadest property purchase rights.
Person of Indian Origin
A foreign citizen (excl. Pakistan, Bangladesh) whose parents or grandparents were Indian citizens. May face some additional restrictions.
Overseas Citizen of India
A foreign national of Indian origin registered under the OCI scheme. Enjoys rights broadly similar to NRIs.
What Property Can NRIs Buy?
NRIs are free to purchase most types of property — but certain categories require RBI permission.
- Residential apartments
- Villas & independent houses
- Commercial offices
- Retail spaces & warehouses
- Agricultural land
- Plantation property
- Farmhouse plots
Watch out: A listing labelled "farmhouse" may still be classified as agricultural land. Always verify land-use classification before paying anything.
How to Fund Your Purchase
All property payments must be routed through Indian banking channels. Here are the three account types you'll use:
For remitting foreign income into India. Best for property purchases — proceeds are fully repatriable abroad.
✓ Fully repatriableFor managing Indian-sourced income — rent, dividends, pension. Repatriation capped at $1M per year.
~ Partial repatriationFor fixed deposits held in foreign currency. Shields you from exchange rate fluctuations.
✓ Fully repatriablePro tip: Use your NRE account for most purchases — sale proceeds can then be sent back abroad without restrictions.
The Buying Process
Choose the property
Research the city, locality, and developer carefully. Only consider RERA-registered projects — they're legally protected and developer-accountable.
Appoint a Power of Attorney (PoA)
If you can't be present in India, designate a trusted person to act on your behalf. The PoA must be notarized and attested by the Indian Embassy or Consulate in your country.
Do your due diligence
Verify title documents, check the encumbrance certificate, confirm RERA registration, and look for any pending legal disputes or dues.
Sign the sale agreement
Once satisfied, sign the agreement and pay the booking amount — typically 10–20% of the property value.
Register the property
The sale deed must be registered at the Sub-Registrar's Office. Stamp duty (5–7%, varies by state) and registration charges apply at this stage.
Taxation
Understanding your tax obligations in India — and your country of residence — is essential before you invest.
When buying
Stamp duty of 5–7% applies. If buying from another NRI, TDS can be 20–30% — factor this in early.
Rental income
Taxable under "Income from House Property." A standard 30% deduction is allowed on the net annual value.
Short-term gains
Property held under 2 years. Gains taxed at your applicable income slab rate.
Long-term gains
Property held 2+ years. Taxed at 20% with indexation. Reinvest under Section 54 or 54EC to save further.
DTAA relief
India's agreements with 90+ countries ensure you won't pay tax on the same income twice.
Top Cities for NRI Investment (2025)
Common Mistakes to Avoid
Skipping RERA verification
Always check the project's RERA number on the state portal before paying anything. Unregistered projects have no legal protection.
Unreliable Power of Attorney
A poorly drafted PoA can lead to fraud or mismanagement. Have a lawyer review it before signing.
Ignoring dual-country tax
Many NRIs forget to declare Indian property and rental income in their country of residence. Get cross-border advice early.
Informal money transfers
All remittances must go through proper banking channels. Informal transfers make repatriation legally impossible later.
Buying agricultural land
"Farmhouse" in a listing doesn't mean it's NRI-eligible. Always verify the official land-use classification.
Poor documentation
Keep all sale deeds, bank records, and tax receipts organized — you'll need them when moving funds abroad.
Thinking of investing in India?
27 Estates helps NRIs find, evaluate, and close the right property — with dedicated support every step of the way.
This article is for informational purposes only and does not constitute legal or financial advice.
Please consult a qualified advisor before making any investment decisions.