NRI Corner Hero — Global Connection to India Real Estate
Dedicated NRI Investment Guide

Your Complete Guide to Buying Property in India as an NRI

FEMA rules, documentation checklist, tax implications, repatriation, Power of Attorney process — everything you need to invest in Fab Luxe Residences from anywhere in the world.

FEMA Compliant No RBI Permission Needed Virtual Site Tours Available NRE/NRO Payment Accepted Dedicated NRI Desk DTAA Benefits Available

Who Can Buy Property in India? FEMA Rules Explained

Under the Foreign Exchange Management Act (FEMA) 1999, NRIs have broad rights to own residential property in India

NRI (Non-Resident Indian)

An Indian citizen residing outside India for employment, business, or other purposes indicating an indefinite stay abroad. Holds Indian passport. Full rights to purchase residential property under FEMA without RBI permission.

PIO (Person of Indian Origin)

A foreign national (except Pakistan/Bangladesh citizens) who held Indian passport, or whose parents/grandparents were Indian citizens. Same property rights as NRIs under FEMA for residential and commercial property.

OCI (Overseas Citizen of India)

Issued to foreign nationals of Indian origin. OCI cardholders have the same rights as NRIs for purchasing residential and commercial property in India. No RBI permission required. Cannot purchase agricultural land.

Eligible Property Types for NRI Purchase

Permitted (No RBI Approval)

  • Residential apartments & flats
  • Residential villas & bungalows
  • Commercial property
  • Any number of residential properties

Not Permitted

  • Agricultural land
  • Plantation property
  • Farm houses
  • Cash payments (FEMA violation)

Step-by-Step Buying Process for NRIs

From initial inquiry to registration — our NRI desk handles it all

1

Initial Consultation & Virtual Tour

Contact our NRI desk via WhatsApp, email, or phone. Schedule a virtual site tour of Fab Luxe Residences — high-quality video walkthrough of units, amenities, and location. Meet your dedicated NRI advisor over video call to discuss investment goals, unit preferences, and payment plans.

2

PAN Card Application

A PAN (Permanent Account Number) card is mandatory for property purchase in India. If you don't have one, apply via Form 49A (Indian citizens) or Form 49AA (foreign nationals of Indian origin) online through the NSDL or UTIITSL portals. Our team assists with this.

3

NRE / NRO / FCNR Account Opening

Open an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account with an Indian bank. NRE accounts hold foreign-earned funds and are freely repatriable. NRO accounts hold India-earned income. Payments for property must flow through these accounts — no direct foreign transfers to builder accounts are permitted.

4

Power of Attorney (POA) Execution

If you cannot be physically present in India for registration, execute a notarized Power of Attorney authorizing a trusted representative (family member or legal counsel) to sign documents and complete registration on your behalf. The POA must be notarized locally and then apostilled or attested by the Indian Embassy/High Commission in your country of residence.

5

Booking, Agreement & Payments

Pay the booking amount via NRE/NRO account. The builder issues an allotment letter. A Sale Agreement is signed (by POA holder if you're abroad). Subsequent payments as per construction-linked plan are made via banking channels. All payments are FEMA compliant.

6

Registration & Possession

Property is registered at the Sub-Registrar office in your name (or by POA). Stamp duty and registration charges apply as per UP state laws. At possession, your representative performs the physical handover. Our team coordinates every step.

NRI Documentation Checklist

Identity & Residency Documents

  • Valid Indian Passport (or PIO/OCI card)
  • Valid Visa / Residence Permit of country of residence
  • PAN Card (mandatory)
  • Overseas address proof
  • Passport-size photographs

Financial Documents

  • NRE/NRO account details & statements
  • Last 6 months bank statements (for home loan)
  • Employment/income proof (salary slips or ITR)
  • Foreign income proof / work permit

Legal Documents

  • Notarized & apostilled Power of Attorney
  • POA holder's ID & address proof
  • Sale Agreement / Allotment Letter (from builder)

Power of Attorney — Key Points

  • • Must be executed on stamp paper (if prepared in India) or notarized abroad
  • • If executed abroad, must be apostilled at the Indian Embassy/High Commission
  • • Specify exact powers — signing sale agreement, registration, receiving possession
  • • General POA or specific POA — both acceptable; specific is recommended
  • • POA holder must be an Indian resident and trustworthy individual

How NRIs Pay for Property in India

NRE Account (Preferred)

Non-Resident External account holds foreign earnings converted to INR. Fully repatriable — both principal and interest can be sent abroad. Best for investment purposes.

Fully Repatriable

NRO Account

Non-Resident Ordinary account holds India-earned income (rent, dividends). Funds can be repatriated up to USD 1 million per year after tax compliance. Widely used for property payments.

Partially Repatriable

FCNR Account

Foreign Currency Non-Resident account — holds deposits in foreign currency (USD, GBP, EUR, etc.). Protects against rupee depreciation. Fully repatriable including interest.

Fully Repatriable

NRI Tax Guide — India Property

Understanding your tax obligations helps maximize net returns. Always consult a qualified chartered accountant.

TDS on Purchase (Deducted by Buyer)

When an NRI sells property to a resident Indian buyer, the buyer must deduct TDS (Tax Deducted at Source) before making payment to the NRI seller.

  • Long-Term Capital Gains (held >2 years) 20% TDS
  • Short-Term Capital Gains (held ≤2 years) 30% TDS
  • Surcharge may apply on high-value transactions As applicable

NRI can apply for a lower TDS certificate from the Income Tax Department if actual gains are lower than the full sale value.

Capital Gains Tax

Capital gains tax applies on profit made from selling property. The holding period determines the tax rate.

  • LTCG (held >2 years) — with indexation 20% + cess
  • STCG (held ≤2 years) Slab rate
  • LTCG exemption (Section 54 — reinvest in property) Exempt

Section 54EC: Invest LTCG in REC/NHAI bonds within 6 months of sale — exempt from LTCG tax.

DTAA — Double Taxation Relief

India has Double Taxation Avoidance Agreements (DTAA) with 90+ countries. NRIs can claim relief to avoid paying tax on the same income in both India and country of residence.

  • USA, UK, UAE, Singapore, Canada, Australia — all covered
  • Tax Credit Method or Exemption Method applies
  • Tax Residency Certificate (TRC) required to claim DTAA

Repatriation of Sale Proceeds

After selling property, NRIs can repatriate proceeds outside India subject to FEMA regulations and tax compliance.

  • Properties eligible for repatriation Up to 2 residential
  • Annual repatriation limit (from NRO) USD 1 Million
  • CA certificate required (Form 15CA/CB) Mandatory

Proceeds must first be credited to NRO account, after which repatriation is possible subject to the limit above.

The above is general guidance only and is not tax advice. Tax laws are subject to change. Please consult a qualified Chartered Accountant or tax advisor familiar with NRI taxation for personalized advice before making investment decisions.

Frequently Asked NRI Questions

Do NRIs need RBI permission to buy property in India?
No. NRIs, PIOs, and OCI cardholders do not need RBI permission to purchase residential or commercial property in India. This is permitted under FEMA 1999 (Schedule 3 of FEMA Regulations). The only restriction is on agricultural land, plantation property, and farm houses, which require prior RBI approval.
Can an NRI get a home loan from an Indian bank?
Yes. Major Indian banks including SBI, HDFC Bank, ICICI Bank, Axis Bank, and Bank of Baroda offer home loans to NRIs. Loan eligibility is based on NRI income, employment status, and credit history. Repayments must be made via NRE/NRO account EMIs. Loan-to-value ratios are typically 75–80% of property value.
What taxes must an NRI pay when buying property in India?
When buying property, NRIs pay the same taxes as resident Indians: Stamp Duty (5–7% in UP), Registration Charges (1%), and GST (for under-construction properties). There is no TDS deducted on purchase. TDS is deducted only when an NRI sells property to a buyer.
How much TDS is deducted when an NRI sells property?
The buyer of the property deducts TDS on the sale price: 20% for Long-Term Capital Gains (property held >2 years) and 30% for Short-Term Capital Gains. Surcharge and cess may apply. The NRI can apply for a lower deduction certificate from the Income Tax Department if the actual taxable gain is lower.
Can I rent out my Fab Luxe apartment as an NRI?
Yes, absolutely. NRIs can rent out their residential property in India. Rental income is taxable in India at 30% (flat rate for NRIs after standard deduction of 30% on rental income). The rental income must be credited to the NRI's NRO account. You can repatriate up to USD 1 million per year from NRO account after tax compliance. Fab Luxe's NRI desk can assist with rental management.
What is the process to repatriate proceeds after selling property?
Sale proceeds must first be credited to the NRI's NRO account. From NRO, you can repatriate up to USD 1 million per year after obtaining Form 15CA and 15CB (CA Certificate confirming taxes are paid). The NRE account funds are freely repatriable without any annual limit. Repatriation is allowed for up to 2 residential properties purchased with foreign funds.
Can my family member sign on my behalf for registration?
Yes. Through a notarized and apostilled Power of Attorney, a family member or trusted representative in India can sign all documents — Sale Agreement, Registration documents, and possession formalities — on your behalf. The POA must be specific enough to cover these transactions and must be attested by the Indian Embassy in your country of residence.
Can NRIs avail Section 80C tax deduction on home loan EMIs?
Yes, if the NRI files Income Tax Returns in India, they can claim deduction on home loan principal repayment under Section 80C (up to ₹1.5 lakh) and interest under Section 24(b) (up to ₹2 lakh for self-occupied; unlimited for let-out property). This can significantly reduce Indian tax liability.
Is there any country restriction for NRIs buying in India?
Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, and Bhutan require special RBI permission to purchase property in India. All other NRIs, PIOs, and OCI cardholders — including those from UAE, USA, UK, Canada, Australia, Singapore, and all GCC countries — can purchase freely under FEMA without prior RBI approval.
How does Fab Luxe's NRI desk help?
Our dedicated NRI desk provides end-to-end support: virtual site tours, documentation guidance (PAN, NRE/NRO account, POA), payment channel setup, builder coordination, registration assistance through POA, and post-possession rental management. We have helped NRIs from Dubai, USA, UK, Canada, and Singapore invest seamlessly in Fab Luxe Residences.

Ready to Invest in India? Start Today.

Contact our NRI desk for a free consultation — virtual site tour, investment analysis, and documentation guidance included.

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