How can NRIs Buy Property in India?

First things first, NRIs are allowed to purchase residential or commercial properties in India. But, (yes there is a but) NRIs cannot purchase any agricultural land or plantation property.

What about farmhouses?

Farmhouses are also out of reach for NRIs though a person who owns a farmhouse can continue to hold agricultural land or plantation property in his name even after becoming an NRI.


How can NRIs buy property in India


Looking for more clarity? Then you have come to the right place. Let’s discuss the following in detail.

  • What are the rules & regulations associated?

  • What are the steps involved?

  • And answer a few frequently asked questions such as:

                1) Can NRIs buy property in India without an Aadhar card?

                2) Is there a need for ‘power of attorney’ for NRI to buy property in India?

                3) Do NRIs need a pan card to buy property in India?

                4) What are the documents required for NRI to buy property in India?

What are the rules & regulations associated?

The Income-Tax Act and the Foreign Exchange Management Act (FEMA) is treated differently for NRIs. An NRI can only invest in commercial or residential property. He or she can not own agricultural property, plantations and farmhouses except by way of inheritance or gift to him.

A person having citizenship of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau or Hong Kong cannot own or transfer property in India (without prior permission of the RBI). However, there is a provision which says that NRIs residing in these countries can obtain property on lease for a period not exceeding 5 years.

Home loan as an option:

The RBI allows NRIs to take home loans for buying immovable property in India. A loan for repairs and renovations can also be availed.



How can NRIs buy home - property in India

RBI has made property investments easy for NRIs to attract foreign investments.

Mandate by RBI

All the transactions should be done in Indian currency through Indian banks. All the transactions should be carried through Indian banking channels only. For this same purpose, NRIs can use NRO/NRE account for all inward remittances. Post-dated cheques or ECS from your NRE, NRO or FCNR (Foreign Currency Non-Resident) account can also be issued.

Plus, NRIs can enjoy tax benefits that an Indian resident is entitled to on the purchase of the property such as a deduction of Rs. 1 Lakh under section 80 C on the Income Tax Act, 1961.

What are the steps involved?

Buying a property in India does not require any special permission for NRIs. Neither any recommendations nor any special document. Here are the simple steps to be followed for NRIs to buy property in India:

  • First, decide which type of property you want to purchase - residential or commercial
  • Do thorough research about the locality, pricing and the real estate property developer’s background.
  • Calculate the cost & affordability of the property you wish to purchase and keep funds ready for the down payment.
  • If you need a loan, contact a nationalised bank in India for the loan procedure.
  • Collect the additional required documents such as passport, POA, etc. apart from the ones required for the loan.
  • Appoint your representative as the POA holder and define his/her powers related to the property ownership/purchase.
  • Negotiate the final cost of the property and finalise the loan disbursement amount.
  • Open an NRE or NRO account to transfer funds as foreign currency to the Indian bank.
  • Hire a lawyer to do the legal paperwork & final closing formalities


Related Post - Dos and Don’ts for NRI’s investing in Indian Realty


How can NRI buy property in India FAQ

Frequently Asked Questions regarding property buying for NRIs

Can NRIs buy property in India without Aadhar card?

As per rule 114C, it is not compulsory for an NRI/PIO to have an Aadhar card for Buying/selling his/her property in India.

Is there a need for ‘power of attorney’ for NRI to buy property in India?

If you are an NRI buying property in India, a power of attorney needs to be granted to someone for making all your investment decisions on your behalf. NRIs have an option to make and give PoA to their friends or relatives.

This is also applicable to the purchase process, in case NRIs are not able to do it themselves. The PoA can be general or specific about the rights POA representative can exercise.

Related Post - How Investing In Kohinoor Coral Can Help You Build A Fortune

Do NRIs need a PAN card to buy property in India?

The PAN card is a vital part of the procedure for an NRI buying property in India.

What are the documents required for NRI to buy property in India?

  • Indian Passport or Overseas Citizen of India (OCI) Card
  • PAN Card
  • Power of Attorney Certificate


Investing in Indian real estate is nowhere near as complicated as you might think it is. So, if you are thinking of investing in real estate in India, there’s no time like the present. Government and tax reforms in the sector have opened up the real estate market, making it more lucrative for NRIs than ever before.

Let's have a look at Kohinoor's NRI Corner 


An investment today is a return tomorrow.


Home Buyer's Checklist - Kohinoor Group



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