Buying a home in India from abroad: a calm checklist for NRIs

An NRI property purchase in India is entirely workable from abroad. Most of the difficulty lies in sequence: the right account, the right document, the right certificate at the right moment. What follows is the order in which we take families through it. Rules in this area have changed recently, including a new Income-tax Act in force since 1 April 2026, so we flag where a point rests on recent change.

NRI property purchase in India: what you may buy

Under the Foreign Exchange Management Act and the rules made under it, NRIs and Overseas Citizens of India may buy residential and commercial property in India without prior approval from the Reserve Bank. They may not buy agricultural land, a farmhouse or plantation property; those can be acquired only by gift or inheritance, according to the RBI's published FAQs. Foreign nationals of non-Indian origin are generally limited to short leases. Citizens of a short list of countries need the RBI's permission to acquire or transfer property, though that restriction does not extend to OCIs.

For a family office or a company, the position is different and needs separate structuring; see our advisory services. Everything here assumes purchase by an individual.

Paying for it

Payment must come through banking channels: an inward remittance from abroad, or funds held in an NRE, NRO or FCNR(B) account. Travellers' cheques and foreign currency notes are not permitted. Keep the paper trail clean from the first instalment, because the same trail determines whether you can later repatriate the sale proceeds.

If you need a loan, Indian banks and housing finance companies lend to NRIs in rupees. Repayment has to be by remittance from abroad or by debit to an NRE, NRO or FCNR(B) account. The RBI's loan-to-value limits apply, which as we understand them currently stand at 90, 80 and 75 per cent depending on loan size; lenders set their own tenure and income tests, and many require an India-resident co-borrower or co-owner.

Signing without being there: the power of attorney

A power of attorney is the usual way to sign, register and take possession while abroad. Keep it narrow: name the property, the acts and the attorney, and avoid a general authority. The Supreme Court has made clear that a power of attorney is not itself a transfer of ownership.

If signed abroad, it is normally notarised, then apostilled or attested by the Indian mission. The Indian Stamp Act gives a three-month window from its arrival in India to have it stamped, or adjudicated by the state's stamp authority, and a document that misses the window can be refused or penalised. Registration at the sub-registrar follows. Confirm the Haryana requirements with counsel before you travel to sign anything.

Tax at purchase and at sale

When you buy from a resident seller above ₹50 lakh, the buyer deducts 1 per cent tax at source from the price and deposits it. When the seller is an NRI, the rule changes: tax must be withheld at the rate applicable to the seller's capital gain, on the whole consideration, with no ₹50 lakh threshold. The provision, formerly section 195, now sits in section 393 of the Income-tax Act, 2025. A lower-deduction certificate can reduce the amount. Reports indicate that from 1 October 2026 resident individual buyers may use a PAN in place of a TAN for this purpose; check the current procedure before the deal closes.

On sale, long-term capital gains on land or buildings, held more than 24 months, are taxed at 12.5 per cent without indexation for transfers on or after 23 July 2024, plus surcharge and cess. The Budget 2024 concession that lets a taxpayer compare that with 20 per cent after indexation, for property acquired before 23 July 2024, is available to resident individuals and HUFs only. An NRI seller does not have the option. Reliefs for reinvestment in a residential property or specified bonds exist, with conditions. Your country of residence will also tax the gain; treaty relief and foreign tax credit matter here. We recommend that you consult your tax adviser in both countries before you sign, not after.

Repatriation

Sale proceeds can be repatriated if the property was acquired in compliance with the law at the time and paid for through banking channels or from NRE and FCNR(B) funds. For residential property, repatriation is limited to two properties, according to the RBI's FAQs. Separately, NRIs may remit up to USD 1 million per financial year from NRO balances, including other sale proceeds, after paying Indian tax and with the prescribed accountant's certificate and remittance forms. Rent from the property is credited to an NRO account and falls under the same limit.

Property inherited or gifted can follow different rules, so keep the paperwork.

RERA and due diligence

For a project in Haryana, confirm the registration on the state RERA portal, match the number to the brochure, and read the stated completion date and the status. Haryana's RERA rules also require sales on carpet area.

Beyond that, our checklist is plain:

• A title search covering at least thirty years, and an encumbrance check
• Licences and sanctioned plans, and for a completed home the occupancy certificate
• Society and maintenance dues, and any pending litigation
• Whether the seller is a resident or an NRI, which drives the tax mechanics above
• Whether the home is held jointly or by a company, and the consent each requires

None of this is difficult, but all of it takes longer from another time zone. We would rather begin early, so talk to us before you transfer funds. For the full list of charges at closing, see what it really costs to buy a luxury home in Gurgaon.

If you are weighing this decision, we would be glad to talk it through, privately.