Are you an NRI, waiting to purchase a residential property in India but don’t know how? Don’t worry, we’ve got you covered here at Auro Realty. Buying a property in India for an NRI is as easy as for an Indian citizen. With changing times, the procedure for NRI to buy property in India has become a hassle-free job and not at all time-consuming. Below are the steps on what should be done and how can an NRI purchase a residential property in India.
Step 1- DOCUMENTATION
Surprisingly, there are not a lot of documents required for NRIs to get started. All you need is,
- A valid passport.
- Address proof.
- PAN card.
- A photograph.
And you’re done, quite simple right? Now that you are done with the paperwork, let’s move ahead to real paper.
Step 2- FUNDING
Don’t have funds ready? No worries, now with the help of RBI, they have now granted permission to banks and housing finance institutions that are registered with the National Housing Bank which will provide home loans for NRIs to buy a residential property in India. All transactions have to be made in Indian currency, only. But, the loan amount goes directly to the seller/developer’s bank, which seems not an issue unless you’re thinking of doing a scam.
The loan, however, can be repaid using funds in an NRI’s NRO(Non-Residential Ordinary) /NRE(Non-Resident External) account or FCNR (Fixed Deposit Foreign Currency account) deposits.
Step 3- HOW JOINT OWNERSHIP WORKS!
Another thing made easier is an NRI can buy property in their own name or jointly with any other NRI’s except a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan, is allowed to acquire or transfer immovable property in India, other than lease, not exceeding five years, without prior permission from the Reserve Bank.
Step 4- PROPERTY TAXES FOR NRI
NRI’s & Resident Indians have to follow a different tax system. NRIs who buy a property have to deduct Income Tax at 1% if the value of the property is more than 50 lakhs and this amount has to be paid to the Income Tax Department. However, if you’re buying this property from a person who is also an NRI this rate is much higher. If the property is for self-use and is financed through a home loan, the interest paid on the loan is deductible from the NRI’s total taxable income.
Step 5: POWER OF ATTORNEY & OTHER.
If at all the said person cannot be physically present there, then with the help of POA, the person can choose a relative/person to legally carry forward the transaction on his/her behalf. However, to get a valid POA you have to visit the Indian Embassy of the city and country where you are located.
If you are an NRI looking for amazing properties, do have a look at the new residential property by Aurobindo Realty, Kohinoor.
Official Resources & References: For verified information, visit RERA Telangana, RBI FEMA regulations.
Authoritative Sources Referenced
- RERA Telangana — Project registration verification
- IGRS Telangana — Property registration & stamp duty data
- NHB RESIDEX — Housing price index
- Reserve Bank of India — Home loan rates & housing finance circulars
- HMDA Telangana — Layout approvals & master plan
Data verified by the Auro Realty Team as of March 2026.
Frequently Asked Questions
Can NRIs get a home loan to buy property in India?
Yes, NRIs can get home loans from Indian banks and housing finance companies. Most lenders offer loans up to 80% of the property value with tenures of 15-20 years. NRIs need to provide overseas income proof, NRE/NRO account statements, passport copies, and employment documents from their country of residence.
What property types can NRIs buy in India?
NRIs can buy residential and commercial properties in India. However, they cannot purchase agricultural land, farmhouses, or plantation properties directly under FEMA regulations. NRIs can inherit such properties through will or gift. Joint purchases with other NRIs or resident Indians are permitted for eligible property types.
What are the tax implications for NRIs buying property in India?
NRIs must pay stamp duty and registration charges at purchase. On selling, TDS of 20% applies on long-term capital gains and at slab rates for short-term gains. NRIs can claim tax deductions on home loan principal (Section 80C) and interest (Section 24) similar to resident Indians, subject to conditions.
