NRIs’ Guide To Buying A Home In India


NRIs’ Guide To Buying A Home In India

To chase their dreams and ambition, many Indian prefer settling abroad. There maybe we various reasons behind their settlement abroad, but one thing remains common – they all have their roots back in India, where they ultimately wish to spend their life, near their loved ones and in the laps of their native land.

Regardless of whether you have been staying abroad for a couple of years or the majority of your lifetime, you can still buy your own home in India. The buying process is arduous and laborious is a common prevailing misconception. With changing times, government rules and policies have become more investment-friendly for NRIs. Here is a quick guide for the NRIs looking to invest in real estate in India:

Property Purchase Permission:

Non-Resident Indians (NRIs) can invest in both residential and commercial properties. The Foreign Exchange Management Act (FEMA) authorizes the Reserve Bank of India (RBI) to structure the rules and regulations in this case. There is no limitation on the number of properties NRIs can purchase and need no special permission from RBI, only when any residential or commercial property is involved.


RBI guidelines are investment friendly for the NRIs. No extra documentation is required while they are looking to buy property in India. All they need is a valid passport, address proof, PAN card and a recent photograph.


Properties in India can only be bought in Indian rupees and not in the NRIs’ residing country’s currency. For this to happen, NRIs need to use a non-residential account like NRO/NRE (Non-Resident Ordinary or Non-Resident External Account) or FCNR account ( Foreign Currency Non-Resident Account) and transfer money from these accounts.

Like many Indians, NRIs also opt was home loans. Most of the banks have a hassle-free home loan procedure in place but each bank is entitled to have its own schemes and interest rates. Once the loan is approved, the money cannot be directly transferred to the NRIs account. Rather it will be credited to the seller’s or the developer’s account directly. The loan can be repaid by the NRI using the amount in their NRO/NRE or FCNR account

Though the documents required might vary from bank to bank, here is a general checklist of documents you should keep in hand when applying for a home loan:

  • Valid Passport and PIO/OCI card
  • Proof of legal status in the current residing country
  • Credit score from your current residing country
  • Income proof and evidence of pre-existing debts (if any)

Taxes Applied:

Whether you an Indian or an NRI, you have to pay tax on the purchase of immovable property in India. The percentage of TDS depends on the seller’s profile. If an NRI purchases property in India from a resident, a TDS of 1% is deducted, considering the purchase exceeds 50 Lacs. If the property is acquired from another non-resident, a TDS of 20% is levied in long-term capital gains and a TDS of 30% is deducted in short-term capital gains.

Power Of Attorney:

Many times the person buying the property can’t be physically present in India. In such cases, the Power Of Attorney (POA) comes into the picture. The NRI buyer can appoint someone close to him – a relative, friend or anyone and legally authorises him to complete the buying process in his absence. To get a valid POA, the NRI buyer has to get in touch with the Indian embassy in his residing country.

A proper background check of the developer is a mandate before any investment. Indian real estate has been reaching new heights and sporting the epitome of luxury. Sureka Properties has some luxurious properties across the city of Kolkata to choose from along with complete buying assistance and payment schedules for the NRIs.