{"id":6512,"date":"2023-03-22T16:38:41","date_gmt":"2023-03-22T11:08:41","guid":{"rendered":"https:\/\/www.aurobindorealty.com\/?p=6512"},"modified":"2026-04-29T10:28:39","modified_gmt":"2026-04-29T10:28:39","slug":"nris-need-to-keep-this-in-mind-before-buying-a-home-in-india","status":"publish","type":"post","link":"https:\/\/aurorealty.com\/blog\/nris-need-to-keep-this-in-mind-before-buying-a-home-in-india\/","title":{"rendered":"NRI&#8217;s Need to Keep This in Mind Before Buying a Home in India"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<label class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/label>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aurorealty.com\/blog\/nris-need-to-keep-this-in-mind-before-buying-a-home-in-india\/#Nature_of_the_Property_What_NRIs_Can_and_Cannot_Buy\" >Nature of the Property: What NRIs Can and Cannot Buy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aurorealty.com\/blog\/nris-need-to-keep-this-in-mind-before-buying-a-home-in-india\/#Taxes_TDS_Capital_Gains_and_the_Numbers_That_Matter\" >Taxes: TDS, Capital Gains and the Numbers That Matter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/aurorealty.com\/blog\/nris-need-to-keep-this-in-mind-before-buying-a-home-in-india\/#Impact_of_RERA_and_GST_on_NRI_Real_Estate\" >Impact of RERA and GST on NRI Real Estate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/aurorealty.com\/blog\/nris-need-to-keep-this-in-mind-before-buying-a-home-in-india\/#Power_of_Attorney_PoA_%E2%80%94_Get_This_Right\" >Power of Attorney (PoA) \u2014 Get This Right<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/aurorealty.com\/blog\/nris-need-to-keep-this-in-mind-before-buying-a-home-in-india\/#Buying_in_Hyderabad_Specifically\" >Buying in Hyderabad Specifically<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/aurorealty.com\/blog\/nris-need-to-keep-this-in-mind-before-buying-a-home-in-india\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<div id=\"bsf_rt_marker\"><\/div><p>Buying property in India as an NRI has become more transparent in the last few years \u2014 Dharani in Telangana, RERA compliance across most states, and cleaner bank channels for repatriation \u2014 but the rules still have enough edges that a single mistake on documentation or tax planning can cost you years. This is the practical framework we walk our NRI buyers through before they sign anything.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nature_of_the_Property_What_NRIs_Can_and_Cannot_Buy\"><\/span>Nature of the Property: What NRIs Can and Cannot Buy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under FEMA, an NRI or OCI can freely buy residential and commercial property in India. The restriction is narrow but important \u2014 agricultural land, plantation property and farmhouses are not permitted unless they are inherited. For almost every urban residential purchase (apartments, villas, plots in gated communities, commercial office floors), the FEMA permission is automatic and no RBI approval is required.<\/p>\n<p>Pay attention to the property classification in the sale deed. If the land has an agricultural tag that has not been formally converted, even a fully built apartment sitting on it can create title complications down the line. Ask for the land conversion certificate, layout approval (HMDA or GHMC in Hyderabad) and occupancy certificate in writing before you pay beyond a nominal booking amount.<\/p>\n<h3>Funding and bank channels<\/h3>\n<p>All payments must flow through normal banking channels \u2014 NRE, NRO or FCNR accounts, or direct inward remittance. Cash and traveller&#8217;s cheques are not allowed. Most NRI buyers use their NRE account for the down payment because those funds are freely repatriable, and run the loan EMI through the same account. Keep clean, itemised records \u2014 they matter when you eventually sell and want to repatriate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Taxes_TDS_Capital_Gains_and_the_Numbers_That_Matter\"><\/span>Taxes: TDS, Capital Gains and the Numbers That Matter<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tax treatment is where NRI property purchases most often go wrong. Three items to understand upfront:<\/p>\n<p><strong>TDS on purchase.<\/strong> If an NRI is buying from a resident seller, the buyer deducts 1 percent TDS at the time of payment (for properties above \u20b950 lakh). If the seller is also an NRI, the rate jumps sharply \u2014 20 percent (plus surcharge and cess) on long-term capital gains, 30 percent on short-term. The buyer is responsible for deducting and depositing this with a TAN. Miss this and you are personally liable.<\/p>\n<p><strong>Capital gains on sale.<\/strong> Long-term (holding period over 24 months) is taxed at 20 percent with indexation benefit. Short-term is taxed at slab rates. NRIs can claim reinvestment exemptions under Section 54 and 54EC in the same way residents can.<\/p>\n<p><strong>Stamp duty and registration.<\/strong> In Telangana this currently runs around 7.5 percent including registration. Budget this separately from the headline property price because it is paid in cash, not from home loan funds.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact_of_RERA_and_GST_on_NRI_Real_Estate\"><\/span>Impact of RERA and GST on NRI Real Estate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>RERA has been the biggest governance upgrade for NRI buyers. Every project sold off-plan must be registered with the state RERA, carry a unique registration number, disclose its project timeline, funding status and developer track record, and maintain 70 percent of buyer deposits in a separate escrow. For an NRI buying remotely, this is the single most reliable filter before you commit capital. Check the state RERA portal, read the project&#8217;s disclosure document carefully, and do not sign if the project is not registered.<\/p>\n<p>GST applies only to under-construction property (currently 5 percent for non-affordable housing, 1 percent for affordable). Ready-to-move property with a completion certificate carries no GST. This can be a 5 percent swing in your total outlay, so factor it in when comparing under-construction and ready-to-move options.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Power_of_Attorney_PoA_%E2%80%94_Get_This_Right\"><\/span>Power of Attorney (PoA) \u2014 Get This Right<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Most NRI buyers execute a Power of Attorney so a trusted family member in India can sign on their behalf at registration. The mistakes happen in the details. The PoA must be executed on non-judicial stamp paper, notarised and attested by the Indian Consulate or Embassy in your country of residence, and then adjudicated at the relevant Sub-Registrar&#8217;s office in India within three months of arriving. Specify the exact scope \u2014 buying a specific property, signing the sale deed, taking possession \u2014 and avoid open-ended general PoAs.<\/p>\n<p>Name a PoA holder you genuinely trust and would trust with a six or seven figure transaction. Ideally a parent, sibling or long-standing family advocate, not a casual acquaintance. Revoke the PoA formally once the transaction is completed; do not leave it dangling.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Buying_in_Hyderabad_Specifically\"><\/span>Buying in Hyderabad Specifically<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Hyderabad has become one of the most NRI-friendly Indian property markets. Dharani, the state&#8217;s integrated land records portal, gives you clean title verification that is hard to match elsewhere. Gachibowli, Financial District, Kokapet and the HITEC City belt attract disproportionate NRI interest because of the IT corridor, good schools and direct airport connectivity.<\/p>\n<p>For luxury buyers, the Single Floor Single Apartment format at <a href=\"https:\/\/aurorealty.com\/blog\/the-pearl-by-auro-realty-experience-a-life-full-of-luxuries-at-hyderabad\/\">The Pearl by Auro Realty<\/a> has become a reference point in the NRI segment. For a broader view on why Hyderabad is currently outperforming, our <a href=\"https:\/\/aurorealty.com\/blog\/what-factors-are-contributing-to-the-fast-growth-of-hyderabad-real-estate\/\">Hyderabad RE growth breakdown<\/a> and <a href=\"https:\/\/aurorealty.com\/blog\/real-estate-markets-of-south-india-continue-leading-the-countrys-residential-sector\/\">South India market overview<\/a> are companion reads. For the <a href=\"https:\/\/aurorealty.com\/blog\/gachibowli-hyderabad-detailed-area-guide\/\">Gachibowli corridor specifically<\/a>, we have a full guide.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"rank-math-block-faq\">\n<div class=\"rank-math-faq-item\">\n<h3>Can NRIs buy property in India?<\/h3>\n<p>Yes. Under FEMA, NRIs and OCIs can freely buy residential and commercial property in India without RBI approval. The only restrictions are on agricultural land, plantation property and farmhouses, which cannot be purchased (though they can be inherited).<\/p>\n<\/div>\n<div class=\"rank-math-faq-item\">\n<h3>What taxes do NRIs pay when buying property in India?<\/h3>\n<p>NRI buyers deduct 1 percent TDS when paying a resident seller (properties above \u20b950 lakh). If the seller is an NRI, the TDS rate is 20 percent on long-term capital gains or 30 percent on short-term gains, plus surcharge and cess. Stamp duty and registration are additional and state-specific (around 7.5 percent in Telangana).<\/p>\n<\/div>\n<div class=\"rank-math-faq-item\">\n<h3>Is Power of Attorney valid for NRI property purchase in India?<\/h3>\n<p>Yes, if executed correctly. The PoA must be on non-judicial stamp paper, attested by the Indian Consulate or Embassy in the NRI&#8217;s country of residence, and adjudicated at the Sub-Registrar&#8217;s office in India. Specify exact scope and duration, and revoke it formally after the transaction closes.<\/p>\n<\/div>\n<div class=\"rank-math-faq-item\">\n<h3>Can NRIs take a home loan in India?<\/h3>\n<p>Yes. Most major Indian banks and HFCs offer NRI home loans up to 75\u201380 percent LTV, repayable through NRE or NRO accounts. Documentation is heavier than for residents (income proof, employment contract, passport and visa, bank statements), and interest rates are typically in line with resident rates.<\/p>\n<\/div>\n<div class=\"rank-math-faq-item\">\n<h3>How can NRIs repatriate sale proceeds?<\/h3>\n<p>Repatriation is allowed up to USD 1 million per financial year from the sale of immovable property, subject to the original purchase being funded through inward remittance or NRE\/FCNR accounts. You need a CA certificate (Form 15CB) and Form 15CA filing to route the funds through an authorised dealer bank.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Buying property in India as an NRI has become more transparent in the last few years \u2014 Dharani in Telangana, RERA compliance across most states, and cleaner bank channels for repatriation \u2014 but the rules still have enough edges that a single mistake on documentation or tax planning can cost you years. This is the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6836,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[],"class_list":["post-6512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment"],"_links":{"self":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/6512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/comments?post=6512"}],"version-history":[{"count":17,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/6512\/revisions"}],"predecessor-version":[{"id":13147,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/6512\/revisions\/13147"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/media\/6836"}],"wp:attachment":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/media?parent=6512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/categories?post=6512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/tags?post=6512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}