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NRI Buying an Apartment in India: Complete 2026 Guide

30 April 2026 · 7 min read

NRI buying apartment in India — 2026 guide on FEMA eligibility, permitted property types, NRI home loans, Section 195 TDS, repatriation limits, POA, and builder selection.

Can NRIs and OCIs Buy Property in India?

Yes — and the process is considerably more straightforward than many NRIs assume from abroad. The Foreign Exchange Management Act (FEMA), 1999 and the regulations issued under it by the Reserve Bank of India permit Non-Resident Indians (NRIs) and Overseas Citizens of India (OCI) card holders to purchase residential and commercial property in India without any prior approval from the RBI. This guide covers every aspect of the process that matters in 2026: qualification, what you can buy, financing, taxes, repatriation, and practical advice on builder selection for remote buyers.

Who Qualifies as NRI or OCI Under FEMA?

  • NRI (Non-Resident Indian): An Indian citizen who resides outside India for employment, business, education, or any other purpose indicating an intention to remain outside India for an indefinite period. Under the Income Tax Act, the practical threshold is residence in India for fewer than 182 days in a financial year (or fewer than 60 days for certain categories with more complex rules). FEMA uses a slightly different residency definition — if your status is genuinely borderline, consult a CA or FEMA-specialised advocate before transacting.
  • OCI (Overseas Citizen of India): A foreign national registered as OCI card holder — broadly, someone who was eligible for Indian citizenship on 26 January 1950, or who was a citizen of India at any point after that date, or whose parent or grandparent was an Indian citizen. OCI card holders have the same property acquisition rights as NRIs under FEMA Schedule III regulations.
  • Foreign nationals of non-Indian origin: These persons require RBI case-by-case approval to purchase even residential property in India. They cannot own agricultural land, plantation land, or farmhouses under any circumstances. This guide is focused entirely on NRIs and OCIs who do not require any prior approval.

What NRIs and OCIs Can and Cannot Buy

  • Permitted without restrictions: Residential property of any type — flats, independent houses, villas, row houses. Commercial property — office spaces, retail shops, warehouses, industrial plots in designated areas. Any number of properties. No RBI approval required for any residential or commercial purchase.
  • Not permitted: Agricultural land, plantation property (tea, rubber, cardamom estates), and farmhouses designated as agricultural or plantation use. Purchase of these categories requires a specific RBI approval that is rarely granted in practice. NRIs who inherit agricultural land from resident Indian parents or grandparents may hold it as legal heirs, but cannot buy it directly.

Home Loans for NRIs

All major Indian scheduled commercial banks and housing finance companies — SBI, HDFC Ltd, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Bank of Baroda, LIC Housing Finance — offer dedicated NRI home loan products. Key features to understand:

  • Loan-to-Value (LTV): Up to 80 percent for loans up to ₹75 lakh, 75 percent for loans above ₹75 lakh and up to ₹5 crore. These LTV limits are identical to those applicable to resident Indian borrowers under RBI guidelines.
  • Eligible repayment accounts: EMIs must be paid from an NRE (Non-Resident External) account, an NRO (Non-Resident Ordinary) account, or via direct foreign currency remittance. Repayment from FCNR (Foreign Currency Non-Resident) deposit accounts is also permitted. You cannot repay NRI home loan EMIs from a resident savings account.
  • Income documentation: Salaried NRIs need salary slips for the last 3 to 6 months, appointment letter or employment contract, and equivalent of 2 years' income tax returns from the country of residence (Form W-2 in the US, P60 in the UK, etc.). Self-employed NRIs need 2 to 3 years of business financials, overseas tax returns, and bank statements.
  • Interest rates: NRI home loan rates are typically 0.25 to 0.75 percent higher than rates offered to resident Indians at the same lender, reflecting the lender's slightly higher operational and recovery risk. Rates are linked to the RBI repo rate or the lender's MCLR.
  • Power of Attorney: If you cannot travel to India for all formalities — loan agreement signing, property registration, possession — most lenders require a valid notarised and apostilled Power of Attorney to be executed in favour of a local representative. See the POA section below.

TDS Obligations When an NRI Sells — Section 195

Under Section 195, when a resident Indian buyer purchases property from an NRI seller, the buyer must deduct TDS at source before paying. Rates are significantly higher than the 1 percent that applies to resident-to-resident transactions under Section 194-IA:

  • LTCG (held over 24 months): TDS at 20 percent of the sale consideration. The NRI may apply to the Income Tax Officer under Section 197 for a lower deduction certificate if actual tax is less than 20 percent.
  • STCG (held 24 months or less): TDS at 30 percent of the sale consideration plus surcharge and cess
  • TDS is deposited via Challan 281 and reported in Form 27Q (not Form 26QB used for resident sellers)
  • Failure to deduct correct TDS makes the buyer liable for the tax plus interest at 1.5 percent per month under Section 201

Always engage a CA with Section 195 experience before closing a transaction where the seller is an NRI.

Repatriation Rules: Taking Money Back Abroad

Once an NRI sells and clears all taxes, repatriation of sale proceeds is governed by FEMA Schedule III:

  • NRIs may repatriate proceeds from up to two residential properties from the NRE account, provided the property was originally purchased with funds remitted from abroad
  • The repatriated amount cannot exceed the original foreign currency equivalent invested — you cannot repatriate more than you put in from outside India
  • For a third property or properties bought from NRO account funds, proceeds go to the NRO account and repatriation is subject to the USD 1 million per financial year limit
  • Form 15CA/15CB from a Chartered Accountant is mandatory — banks will not process the remittance without it

Power of Attorney — Practical Considerations

An NRI Power of Attorney (POA) is a necessity for most NRI property transactions unless the NRI can be physically present in India for every step. Critical points:

  • The POA must be executed before a Notary Public in the NRI's country of residence, then apostilled by the designated authority (for Hague Apostille Convention countries — US, UK, Australia, Canada, UAE, Singapore, and most EU countries are signatories)
  • For countries not covered by the Hague Convention, the POA must be attested by the Indian Embassy or High Commission in that country
  • Once the apostilled POA arrives in India, it must be adjudicated — presented at the relevant Sub-Registrar's office for stamping and recording — before it can be used in any property transaction
  • Prefer a Specific Power of Attorney limited to the exact transaction (this property, this seller, this consideration) over a General POA that gives broad powers. Broad GPAs are more susceptible to misuse and are viewed with suspicion by registering authorities and courts
  • Under the Supreme Court's 2012 ruling in Suraj Lamp and Industries vs State of Haryana, a POA-based transfer does not by itself transfer title — the POA holder must execute a properly registered sale deed in your name

Stamp Duty for NRI Buyers

NRIs pay the same stamp duty rates as resident Indian buyers — no NRI surcharge applies in any state as of 2026. Rates vary: Karnataka charges 5 percent above ₹45 lakh; Maharashtra charges 5 percent for women and 6 percent for men; Telangana charges 4 percent plus 0.5 percent transfer duty. Confirm current rates with your advocate before signing, as state governments revise them periodically.

Brickplot's Take

NRI buyers face a fundamental information disadvantage. You cannot visit the site regularly, inspect the flat before possession, or interact with the resident buyer community that monitors construction progress on the ground. This makes builder selection the single most critical decision for an NRI purchase. We recommend three filters before shortlisting any project: RERA registration must be current with up-to-date quarterly filings (verify on the portal yourself); the builder's Financial Health and Delivery Reliability scores on Brickplot must each be 7 or above; and the project should have an active resident buyers' association that shares regular construction updates. These filters, combined with a RERA-registered agent, a qualified local advocate for title due diligence, and a CA for Section 195 TDS compliance, give NRI buyers a sound framework for transacting safely from abroad.