For NRI Buyers
Buying from abroad, without the guesswork
You should not have to fly to Pune to understand what you are buying, and you should not have to chase anyone for an update once you have.
The short version
Four things that decide almost every question an NRI or OCI buyer asks about property in India.
- No approval neededNRIs and OCIs can buy residential property in India under RBI general permission. No RBI application, no special filing before you buy.
- Banking channels onlyPayment must come through an NRE, NRO or FCNR account, or by inward remittance. Cash and foreign currency are not permitted.
- PAN is mandatoryYou cannot register a property or meet tax obligations in India without a PAN. Start this early; it is the most common delay.
- You need not attendA properly executed Power of Attorney lets someone act for you in India. There are formalities, and they have deadlines.
What you can and cannot buy
Under the Foreign Exchange Management Act, the line is drawn by property type, not by how much you buy.
- Residential property, any number of units
- Commercial property, any number of units
- Property acquired by gift from a relative who is a resident, NRI or OCI
- Property acquired by inheritance
- Agricultural land
- Plantation property
- Farmhouses
- Payment in cash, foreign currency notes or traveller’s cheques
Agricultural land, plantations and farmhouses can be inherited but cannot be purchased. If a project is marketed to you as a farmhouse plot, that is a reason to walk away, not to negotiate.
How the money moves
Every rupee must be traceable through Indian banking channels. That is not a Detra rule, it is a FEMA requirement, and getting it wrong can attract penalties of up to three times the amount involved.
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NRE account
For income earned abroad. Held in rupees, fully repatriable, and interest is tax free in India. If you expect to send the money back one day, buying from NRE funds makes that simplest.
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NRO account
For income earned in India, such as rent. Repatriation from NRO is capped at USD 1 million per financial year across all your NRO accounts, and requires Forms 15CA and 15CB.
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FCNR deposit or inward remittance
FCNR deposits are held in foreign currency and converted at the time of payment. A direct SWIFT transfer from your overseas bank works equally well and creates the same audit trail.
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An Indian home loan
Indian banks and housing finance companies lend to NRIs, typically at 75 to 90 percent of value. The loan is disbursed to the developer, and instalments must be paid from an NRE, NRO or FCNR account or by inward remittance.
Buying without flying
A Power of Attorney is how most overseas purchases complete. The mistakes people make are almost always procedural, and almost always about timing.
- 01
Use a Special PoA, not a General one
Narrow it to this transaction and this property, with an expiry. Registrars and banks prefer it, and it limits what can be done in your name.
- 02
Sign it in person, abroad
Before a notary or a consular officer. India does not accept online notarisation for this. If you are in a Hague Convention country, an apostille is the normal route; elsewhere, attestation at the Indian mission.
- 03
Courier it, and keep the tracking
The delivery date matters. It starts the clock on the next step, so keep the tracking record.
- 04
Stamp it within three months of arrival
Under the Indian Stamp Act, a PoA executed abroad must be stamped in India within three months of first arriving. Miss this and it may not be admissible.
- 05
Register it where the property is
At the sub-registrar with jurisdiction over the property. For anything touching immovable property, treat registration as required rather than optional.
You should be able to buy from eight thousand kilometres away and know exactly what is happening.
Getting the money out later
Worth understanding before you buy, not after you sell. How you fund the purchase decides how easily proceeds can leave India.
- Funded from NRE or FCNRThe amount you originally brought in is repatriable without the annual cap. This is the cleanest route if you may sell and take the money out.
- Funded from NRORepatriation is capped at USD 1 million per financial year across all NRO accounts, after tax and with Forms 15CA and 15CB filed.
- Residential property limitSale proceeds of up to two residential properties may be repatriated. Commercial property is not subject to that count, but the annual cap still applies.
- Sale proceeds routeProceeds are credited to your NRO account first, then repatriated once tax is settled and documentation is filed.
- Capital gainsApplies on sale and depends on how long you held the property. Rates and reliefs change; take advice for your own position rather than relying on a webpage.
This page is general information, not tax or legal advice. FEMA rules, RBI directions and tax rates change, and your position depends on your country of residence, any applicable double taxation treaty, and how you fund the purchase.
Before you commit money, take advice from a chartered accountant and a lawyer who act for you. Detra will work with your advisers, and we will not pretend to be them.
What to have ready
The list that decides whether a purchase takes weeks or months. Most delays are documents, not decisions.
- PAN card. Mandatory for registration and tax
- Passport, and OCI card if you hold one
- Visa or residence permit for your country of residence
- Proof of overseas address
- NRE, NRO or FCNR account with an Indian bank
- Bank statements for the account funding the purchase
- FIRC or remittance advice for inward transfers
- Special Power of Attorney, apostilled or attested
What Detra does about it
The regulatory part is the same for every developer. What differs is whether anyone helps you through it, and whether you can trust what you are told when you are not in the country to check.
- A named personOne person at Detra handles your purchase from enquiry to handover, and you have their direct line. Not a rotating sales desk.
- Your hours, not oursTell us your time zone and we call at a reasonable hour for you. Gulf, UK, Europe, Singapore and North America are all workable.
- Specification before priceYou read what is being built, in writing, before anyone discusses money. That matters more when you cannot walk the site.
- Dated construction updatesPhotographs and progress against the committed schedule, on a fixed cycle. You never have to ask.
- A live walkthroughA video call from site, on request, so you see the actual building rather than a curated set of photographs.
- Documentation, organisedAgreement, receipts, remittance records and registration papers assembled as we go, so your accountant is not reconstructing them later.
- No brokersYour details stay with Detra. You will not be called by three agencies a week after enquiring.
Tell us where you are
Give us your time zone and what you want to know. We will reply in writing first, then call when it suits you.