Non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) can buy property in India, and many choose homes or rental investments in their home region. Here is what you need to know.
What NRIs can and cannot buy
- Allowed: residential and commercial property, with no limit on the number of properties.
- Not allowed without special permission: agricultural land, plantation property and farmhouses.
- Property can also be received by inheritance or gift from relatives, subject to the rules.
How to pay
- Payments must come through normal banking channels: inward remittance from abroad, or from your NRE, NRO or FCNR account in India.
- Payments cannot be made in foreign currency notes or travellers' cheques.
- Home loans for NRIs are available from Indian banks, with EMIs paid from your NRE or NRO account.
Buying without travelling
- Shortlist and view properties through live video walkthroughs.
- Appoint a trusted person in India through a registered power of attorney for signing and registration, if you cannot travel.
- Have all documents checked by a lawyer before paying any token amount (see our documents checklist).
Tax points to plan for
- Rental income from property in India is taxable in India, and tenants may need to deduct tax at source.
- When you sell, the buyer must deduct tax at source on the payment to an NRI seller. Plan for this and take advice from a tax professional.
- Check the tax treaty between India and your country of residence.
How we help
We act as one accountable point of contact: shortlisting, video viewings, coordinating with your lawyer and bank, and finding tenants if you want rental income. Speak to an advisor.
