NRIs buying Indian real estate is one of the most regulation-heavy retail investments you can make. FEMA, RBI rules on repatriation, tax treaty overlaps, TDS at source, PoA requirements — the paperwork is larger than the cheque you’ll write. This guide is the 10-step framework we walk every NRI buyer through.
The 10 steps, in order
- Decide the purpose: self-use in retirement, rental income now, or capital-gain flip. Each has different optimal city, builder tier, and ticket size.
- Confirm eligibility: NRIs, PIOs, and OCIs can freely buy residential and commercial. You cannot buy agricultural land, plantation property, or a farmhouse without explicit RBI permission.
- Open the right bank accounts: NRE, NRO, and FCNR serve different purposes. Repatriating sale proceeds later requires the purchase to be paid from NRE — plan this before you wire.
- Get a PAN and Aadhaar-optional ID: PAN is mandatory for any property transaction 1 lakh. Linking to your home country TIN avoids double TDS.
- Appoint a Power of Attorney: notarized in the country of residence, apostilled or attested at the Indian consulate, registered in the Indian state where the property sits. Budget 3-4 weeks.
- Shortlist via Brickplot reviews: RERA-verified, builder delivery history, locality micro-data. Skip any project without a RERA number.
- Home loan (optional): NRI home loans up to 80% LTV, tenor 20 years max, rates 0.25-0.5% higher than resident. See our home-loan eligibility guide for lender-by-lender comparison.
- Site visit via PoA or video: builders will do live walkthroughs for NRI buyers; RERA rules require physical approval rights via your PoA.
- Payment + registration: all inward remittance via banking channel, never cash. Stamp duty + registration charges 5-7% of agreement value. Calculator here.
- Post-purchase: annual income tax filing (rent is taxable in India even for NRIs), TDS compliance when selling, FEMA declaration on any repatriation.
The three regulations you cannot skip
FEMA 1999 governs all foreign exchange transactions including your property purchase. RBI Master Direction on Liberalised Remittance Scheme caps individual repatriation. DTAA (Double Taxation Avoidance Agreement) between India and your country of residence determines whether you pay tax twice or once. Our dedicated FEMA guide walks through every clause you actually care about.
Common mistakes
- Paying in rupees from an NRO account — limits repatriation to $1M/year
- Missing the 1% TDS deduction when buying from a resident seller if agreement value >₹50L
- Assuming RERA alone protects you — it doesn’t cover delivery delays, only fraud
- Signing a generic PoA — it must specify property acts, not just general authority
- Using a broker instead of a RERA-registered agent — only the latter has legal standing if disputes arise
Ready to shortlist? Our reviews index has 20+ RERA-verified projects across India’s top 6 cities, with NRI-specific notes on each.