NRI Property Buying Guide: Rules, Taxes & Investment Tips for 2025

NRIs (Non-Resident Indians), PIOs (Persons of Indian Origin), and OCIs (Overseas Citizens of India) are increasingly investing in Hyderabad’s booming real estate market. This guide explains property eligibility, taxation, documentation, and repatriation rules with frequently asked questions to help you make informed investment decisions.

Who is Eligible to Buy Property in India?

NRI (Non-Resident Indian): An Indian citizen residing outside India for more than 182 days in a financial year.
PIO (Person of Indian Origin): Foreign passport holders with Indian lineage.
OCI (Overseas Citizen of India): Overseas individuals granted lifelong visa and property rights (except agricultural land).

Key Rule: NRIs, PIOs, and OCIs can buy residential and commercial properties in India but cannot purchase agricultural land, plantation property, or farmhouses.

What Properties Can NRIs Buy?
Allowed:

Residential flats and villas
Commercial spaces (shops, offices)

Restricted:

Agricultural land
Plantation property
Farmhouses

Documentation Required for NRI Property Purchase

Valid passport and visa (or OCI card)
Indian PAN card (for tax compliance)
Overseas address proof
Power of Attorney (POA) if purchase is via representative
Proof of NRE/NRO bank account

Taxation Rules for NRIs Buying Property in India
Stamp Duty & Registration

Payable at standard state rates (Telangana ~5-7%)

Capital Gains Tax

Short-term (within 2 years): Taxed at income slab
Long-term (after 2 years): 20% with indexation benefits

Rental Income Tax

Subject to 30% TDS if rent exceeds ₹50,000/month

DTAA (Double Taxation Avoidance Agreement)

Allows tax relief for NRIs who pay taxes abroad and in India

Repatriation of Funds (Sending Money Abroad)

NRIs can repatriate up to two residential properties’ sale proceeds
Must credit sale proceeds to NRE/FCNR (B)/NRO account before transfer
Subject to RBI guidelines and tax clearance

Home Loan Rules for NRIs

Loans available from Indian banks and housing finance companies
Funds disbursed to seller/developer account directly
Repayment allowed via NRE/NRO/FCNR accounts or inward remittance

Frequently Asked Questions

Can NRIs buy agricultural land in India?

No, NRIs cannot buy agricultural land, plantation property, or farmhouses. They can only inherit such properties.

How many properties can an NRI buy in India?

There is no restriction on the number of residential or commercial properties NRIs can purchase.

Is rental income from NRI-owned property taxable in India?

Yes, rental income is taxable in India. Tenants must deduct 30% TDS before paying rent to NRI landlords.

What are the tax benefits for NRIs buying property in India?

NRIs get similar benefits as residents: deduction on home loan interest (Section 24B) and principal repayment (Section 80C).

Can NRIs repatriate sale proceeds of property purchased in India?

Yes, repatriation is allowed for up to two residential properties if purchased via NRE/FCNR accounts and taxes are paid.

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

Yes, PAN card is mandatory for property transactions and tax filings in India.

Can NRIs buy property jointly with foreign nationals?

No, NRIs cannot jointly purchase property with foreign nationals unless the foreign partner also qualifies as NRI/OCI/PIO.

How can NRIs finance property purchase in India?

NRIs can use:

Funds from NRE/NRO/FCNR accounts
Home loans from Indian banks
Inward remittances from overseas accounts

Why Hyderabad is the Top Choice for NRI Investment in 2025

High ROI: Consistent property appreciation in HITEC City, Kokapet, Patancheru
Infrastructure: ORR, Metro expansion, IT corridors
Luxury Developments: Integrated townships with world-class amenities
Global Connectivity: Proximity to RGIA Airport

Quick Checklist for NRIs Buying Property in India

Confirm eligibility (NRI/PIO/OCI)
Choose property type (residential/commercial)
Verify builder RERA registration
Check legal documents: title, EC, sale deed
Arrange funds via NRE/NRO account or home loan
Understand tax liabilities and repatriation rules
Execute sale deed and register property

The Pearl

The Pearl by Auro Realty is a visionary project crafted to elevate Hyderabad’s luxury real estate landscape in HITEC City, setting a new stratum of world-class extravagance. It is an iconic milestone that embodies a stunning confluence of luxury and elegance, where one can experience opulence with a lifestyle that exceeds superior benchmarks. Discover Luxury Apartments in Hyderabad in HITEC City, featuring magical lifestyles, grand environs, stunning designs, and uber-luxurious amenities that define premium living in one of Hyderabad’s most sought-after tech hubs. The Pearl also offers exquisite 4 BHK Flats in HITEC City, perfect for those seeking spacious and sophisticated homes in this thriving area.

Kohinoor

Kohinoor, home to the seven tallest towers in Hyderabad, epitomizes abundant luxury meant to be owned by the discerning few. This soaring architectural marvel has been thoughtfully designed to reflect a top-notch, radiant lifestyle with a diverse range of the luxurious 2 BHK, 3 BHK and 4 BHK flats for sale in Hyderabad, including elegant duplex residences. Kohinoor offers a harmonious blend of elegance, serenity, vibrant social life, and convenience, right at the heart of Hyderabad’s thriving real estate market. Enjoy breathtaking high-rise views and spectacular sunshine filling every corner of your home.

The Regent

Experience superior ambiance and a unique lifestyle at The Regent, located in the coveted neighborhood of Kondapur, Hyderabad. This magnanimous township, spanning 10.3 acres with five towers, showcases the true essence of grand living. Surrounded by lush greenery and close to landmarks such as Gopi Cheruvu lake, The Regent offers a countryside lifestyle within the bustling city of Kondapur. With residences spread across 39 floors, The Regent stands as one of the premier 3 BHK Flats for Sale in Kondapur, blending urban convenience with natural tranquility. Whether you're looking for a 3 BHK for Sale in Kondapur or comfortable 3 BHK Flats in Kondapur, this project caters to your lifestyle needs.

Sansa County

Sansa County, nestled in a serene paradise at Patancheru, is Hyderabad's premier integrated township. This residential villa community spans 500 acres and offers an exceptional lifestyle with lakes, parks, and various amenities. Phase 1 covers 97 acres and features 953 triplex villas, each on 200 square yards/2500 sq. ft. To elevate your living, these villas come with elevator provisions, and Phase 1 offers a range of diverse lifestyle amenities. Sansa County is among the top Villa Projects in Hyderabad, offering some of the finest Villas for Sale in Hyderabad as well as exclusive Villas for Sale in Patancheru.

Auroland

Auroland, Patancheru, is a thoughtfully planned residential community offering modern living amidst serene surroundings. Located in the rapidly developing Patancheru area, it provides excellent connectivity to Hyderabad’s key hubs. The project features premium villa plots in Hyderabad with contemporary amenities designed for comfort and convenience. Auroland is ideal for those seeking a balanced lifestyle combining urban accessibility and peaceful living, with attractive options for plot for sale in Patancheru.

Orbit

Orbit by Auro Realty, designed by Chapman Taylor, is an innovative commercial marvel spanning 1.1 million sq. ft. It received the 2018 Best Office Architecture of India award at the Asia Pacific Property Awards. With precast technology and LEED V4 gold certification in progress, Orbit combines efficiency with sustainability. This iconic building offers top amenities, including visitor management, destination-controlled elevators, security, and extensive parking for 2,000 cars across four levels. Its strategic location ensures easy access to public transport and nearby entertainment and retail options.

Galaxy

Galaxy by Auro Realty is a majestic 25-story office tower in the heart of HITEC City, Hyderabad. It stands as India's tallest corporate office building constructed with precast technology. This prime grade A office space covers 1.9 million sq. ft., featuring an elegant glass façade and contemporary design. It proudly holds a pre-certified LEED v4 Gold Rating from USGBC, emphasizing its commitment to environmental sustainability.The grand double-height entrance lobby and thoughtful design enhance the overall user experience, while landscaped open areas create a relaxing atmosphere for occupants. Galaxy promotes work-life balance, boosting employee productivity.

Corporate and Registered Address:
Auro Realty Private Limited.
21st Floor, Wing A, Galaxy,
Plot No:1, Sy No. 83/1
Hyderabad Knowledge City,
Raidurg (Panmatkha), Hyderabad
Telangana - 500081
Corporate Identification Number : U45100TG2012PTC084829

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NRI Property Buying Guide – Rules, Taxes & FAQs