🗓️Last Updated: June 2026

NRI Property in India 2026 — Buy, Sell, Tax & Repatriation

Complete guide for NRIs on buying and selling property in India. Covers what types of property NRIs can own, the buying process, TDS on property sale (20–30%), capital gains tax, how to repatriate sale proceeds abroad, and giving Power of Attorney to a trusted person in India.

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Verified by NagrikIQ Research Team

Sources: Official .gov.in portals only · Updated June 2026

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Official Sources

RBI FEMA Guidelines — NRI Property

🔗RBI FEMA Guidelines — NRI Property — Official Portal →

📋 Overview

NRIs have broad rights to own property in India under the Foreign Exchange Management Act (FEMA) and RBI guidelines. The key rules: NRIs CAN buy any number of residential or commercial properties in India without RBI permission. NRIs CANNOT buy agricultural land, plantation property, or farmhouse property (special RBI permission required, rarely granted). Property transactions by NRIs are governed by FEMA 1999. Payment must be made from NRE/NRO/FCNR accounts or through inward remittance from abroad — payment in foreign currency from abroad directly is not permitted. Home loans are available for NRIs from Indian banks at the same rates as residents. On selling property, the buyer is required to deduct TDS — 20% for long-term capital gains (property held over 2 years) or 30% for short-term capital gains. NRIs can apply for a lower TDS certificate if their actual tax liability is lower. Sale proceeds can be repatriated abroad up to $1 million per financial year from NRO account, after tax payment and CA certification.

✅ Eligibility

✓Any NRI (Indian citizen residing abroad) can purchase residential and commercial property in India — no RBI permission required.
✓OCI cardholders can also purchase residential and commercial property in India on the same terms as NRIs.
✓NRIs/OCIs CANNOT purchase: agricultural land, plantation property (tea/coffee/rubber estates), farmhouse property.
✓Foreign nationals (non-Indian citizens, non-OCI) generally cannot purchase property in India without RBI special permission.
✓PIO cardholders (old system, now merged with OCI) had the same rights as NRIs for property purchase.

📁 Documents Required

▸For buying: Indian passport + OCI card, PAN card, NRE/NRO bank account details for payment, Aadhaar (if available)

▸For registration: Sale agreement, stamp duty challan, property documents from seller (title deed chain)

▸Power of Attorney (if someone else is registering on your behalf) — must be notarised and apostilled

▸For TDS certificate (Form 13): PAN card, property details, expected capital gains computation, income tax login

▸For repatriation after sale: CA certificate in Form 15CA/15CB, NRO account details, sale deed copy

💰Fees & Processing Time

Fee

Stamp duty on property purchase: 3–10% of property value depending on state (same as residents). Registration charges: 0.5–2% of property value. TDS on sale (deducted by buyer): 20% for long-term capital gains / 30% for short-term capital gains. Home loan processing fee: 0.5–1% of loan amount. CA fees for repatriation certification (Form 15CA/15CB): ₹5,000–15,000 typically. No additional fees for NRIs compared to residents for property registration.

Processing Time

Property purchase/registration: 1–4 weeks (varies by state, depends on due diligence timeline). TDS certificate from Income Tax Department (Form 13): 30–45 days. Capital gains tax assessment and clearance: 3–6 months. Repatriation from NRO account: 7–14 working days after bank receives complete documents.

🖥️ How to Apply Online

1Identify property — you can do property search remotely via sites like 99acres, MagicBricks, NoBroker. Virtual tours are available for most new projects.
2Verify title — hire a local lawyer in the city where property is located to do title search (typically ₹5,000–15,000). Verify on the state's property registration portal.
3Negotiate and sign agreement to sell — can be signed digitally or via courier if you are abroad. Send payment from NRE/NRO account by RTGS/NEFT.
4Give Power of Attorney (POA) to a trusted person in India to complete registration on your behalf — POA must be notarised in your country of residence and apostilled (see our POA guide).
5Your POA holder registers the property at the Sub-Registrar office in India. Stamp duty and registration charges paid on your behalf.
6Property mutation (khata transfer) done at municipal office — POA holder can do this on your behalf.
7For home loan: apply online with HDFC, SBI, ICICI NRI banking portals. Income proof from abroad (salary slips, tax returns) required.

🏢 How to Apply Offline

1Visit India during property purchase — recommended for high-value transactions to conduct due diligence personally.
2Meet with local property lawyers, verify original title documents at the Sub-Registrar office.
3Attend property registration in person — eliminates need for Power of Attorney.

⚠️Common Problems & Solutions

✗Buyer deducted 30% TDS but my actual capital gains are much less — how to claim refund

→File an Indian income tax return (ITR-2 for NRIs with capital gains) for the relevant financial year. Calculate your actual capital gains (sale price minus indexed cost of acquisition). If actual tax is less than TDS deducted, you will get an income tax refund — typically processed in 3–6 months. Alternatively, apply for a lower TDS certificate (Form 13) BEFORE the sale to prevent over-deduction.

✗Want to repatriate property sale proceeds but bank is asking for many documents

→For repatriation from NRO account, banks require: (1) CA certificate in Form 15CA/15CB certifying tax compliance; (2) Sale deed copy; (3) TDS challan (proof TDS was paid); (4) Proof funds came from NRE/NRO/foreign remittance originally. Hire a CA in India who specialises in NRI transactions — costs ₹5,000–15,000 but saves time. Maximum repatriable: $1M per financial year.

✗Inherited property in India — can I sell and repatriate proceeds?

→Yes, NRIs can sell inherited property (including agricultural land, which they otherwise cannot purchase). The repatriation of sale proceeds from inherited property is limited to $1 million per financial year from NRO account. For inherited agricultural land sold, additional documentation (will/succession certificate + legal heir certificate) is required. Consult a CA for the tax implications as inherited property has special indexation benefits.

❓ Frequently Asked Questions

Q.Can an NRI take a home loan from an Indian bank?

Yes. All major Indian banks — SBI, HDFC, ICICI, Axis — offer home loans to NRIs for property purchase in India. Eligibility is based on your income abroad (salary slips, employment contract, foreign bank statements). Loan-to-value: up to 80% of property value. EMIs must be paid from NRE/NRO account. Interest rates are the same as resident home loans (currently 8.5–9.5% per annum).

Q.What is long-term vs short-term capital gain on property for NRIs?

Property held for MORE than 24 months (2 years) at time of sale: Long-term capital gain (LTCG) — taxed at 20% with indexation benefit (cost adjusted for inflation). Property held for 24 months or less: Short-term capital gain (STCG) — taxed at your income tax slab rate (up to 30%). TDS deducted by buyer: 20% for LTCG, 30% for STCG. Indexation significantly reduces LTCG tax for properties held many years.

Q.Do I need to pay capital gains tax in both India and my country of residence?

India has Double Taxation Avoidance Agreements (DTAA) with 90+ countries. Under DTAA, if you pay capital gains tax in India, you get credit for that tax in your country of residence — avoiding double taxation. The exact treatment depends on your country. In the USA, for example, you can claim a foreign tax credit on your US tax return for Indian capital gains tax paid.

Q.Can an NRI rent out property in India?

Yes, NRIs can rent out Indian property. Rental income is credited to the NRO account. TDS of 30% is deducted by the tenant on rent paid to NRI landlord (for rent above ₹50,000/month). You can claim this TDS as credit when filing Indian income tax return. Net rental income can be repatriated up to $1M per year from NRO account.

📞Helpline & Support

▸RBI FEMA NRI helpline: rbi.org.in → FEMA → Frequently Asked Questions → NRI
▸Income Tax e-filing (capital gains): incometax.gov.in
▸Apply for lower TDS certificate (Form 13): incometax.gov.in → Forms → Form 13
▸RERA — verify project registration: rera.gov.in (for new projects)

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Disclaimer: NagrikIQ is an informational platform and is not affiliated with any government department. Information provided is for guidance only. Always verify details on the official government portal before taking action.