Checklist for NRIs Buying Real Estate in India

Investing in real estate back home is a dream for many NRIs (Non-Resident Indians). Whether it’s an apartment for personal use, a plot for future development, or a rental income property — India’s real estate market offers great opportunities. However, NRIs must follow certain rules and documentation requirements when purchasing property in India.

This comprehensive checklist will guide you through the essential steps and things to consider before making a property investment.

1. Understand Eligibility Rules for NRIs

As per the Foreign Exchange Management Act (FEMA):

NRIs and PIOs (Persons of Indian Origin) can buy residential or commercial properties in India.

You cannot buy agricultural land, plantation property, or farmhouses, unless inherited or gifted.

Tip: OCI (Overseas Citizen of India) cardholders also enjoy the same property ownership rights as NRIs.

? 2. Get Your Documentation Ready

Make sure you have the following documents:

Indian Passport or OCI/PIO Card

PAN Card (Permanent Account Number)

Overseas Address Proof

Passport-size Photographs

Power of Attorney (PoA) if you're authorizing someone in India to manage the purchase

3. Funding and Financial Planning

You can fund the purchase through:

Own funds via NRE/NRO/FCNR accounts

Home loans from Indian banks (most major banks offer home loans to NRIs)

Down payment and EMI can be paid through inward remittance or NRI bank accounts

Note: The loan must be repaid in Indian rupees, and Indian banks follow stricter scrutiny for NRI loans.

4. Choose the Right Property Type

Ask yourself:

Are you buying for self-use, rental income, or investment?

Is the property RERA-registered? (You can check on RERA's official website)

Always verify:

Title deeds

Property approvals

Past ownership (in case of resale property)

Builder reputation (in case of under-construction property)

5. Hire a Legal Advisor or Real Estate Consultant

Buying property from abroad can be tricky. A local real estate lawyer or consultant can:

Help verify property documents

Draft/Review sale agreements

Assist with registration

Represent you through PoA

? 6. Understand Power of Attorney (PoA)

If you’re not physically present in India:

Execute a registered Power of Attorney to a trusted person (friend, family, lawyer)

PoA can be used for signing documents, registering property, managing loans, etc.

Tip: The PoA must be notarized and attested by the Indian Embassy/Consulate in your country.

7. Registration and Stamp Duty

Pay applicable stamp duty and registration charges

Charges vary by state — typically 5–8% of property value

8. Taxation and Repatriation Rules

Rental income is taxable in India

Capital gains on property sale are also taxable

You can repatriate sale proceeds of up to USD 1 million per financial year (from NRO account) after paying applicable taxes

Tip: Consult a chartered accountant for income tax filing and repatriation process.

9. Verify Builder & Project Credentials (if buying under-construction)

Check RERA registration

Ask for project approvals, commencement certificate, environmental clearance, etc.

Research builder’s track record for delivery and legal compliance

10. Avoid Common Pitfalls

Don’t rush into a deal — verify ownership titles and encumbrance certificates

Avoid properties with legal disputes

Ensure the seller has clear authority to sell the property

Don’t make cash payments or invest in black money transactions

Final Thoughts

Buying real estate in India as an NRI is a smart long-term decision — but only if you follow the rules and do proper due diligence. With the right legal support, clear documentation, and financial planning, you can enjoy smooth and hassle-free property ownership back home.