- Pay from NRE, FCNR or NRO accounts, or with an NRI home loan.
- A PAN is needed; an Aadhaar card is not required for NRIs.
- If the seller is an NRI, you as buyer must deduct tax and need a TAN.
- Keep proof of the source of funds for future repatriation.
On this page
Can NRI purchase property in India: which account to pay from?
| Account | What it holds | Effect later |
|---|---|---|
| NRE | Foreign earnings, repatriable | Helps repatriate sale proceeds up to the amount paid |
| FCNR | Foreign currency deposits | Same as NRE |
| NRO | Income earned in India, such as rent | Proceeds repatriable within the NRO annual limit |
NRI home loans
Indian banks and housing finance companies lend to NRIs for residential property, with repayment from NRE or NRO accounts or by remittance. Expect to provide overseas income proof, passport and visa, and a power of attorney for someone in India.
Which documents does an NRI need?
- PAN card.
- Passport and visa or OCI card.
- Overseas address proof.
- Bank statements showing the source of funds.
- A power of attorney if someone else will sign or register.
An Aadhaar card is not required for NRIs.
Buying from a seller who is also an NRI
When the seller is a non-resident, the buyer must deduct tax at source at the non-resident rates and deposit it, which requires the buyer to obtain a TAN. See TDS on sale of property by NRI.
Proving where the money came from
Keep bank statements and remittance records showing that the price was paid from your NRE, FCNR or NRO account or by inward remittance. These are needed when you sell and want to repatriate the proceeds, and when the tax department asks about the source of funds.
Stamp duty and registration
Stamp duty and registration charges are the same for NRIs as for residents and depend on the state. Registration can be done in person or through an attorney holder with a properly stamped power of attorney. After registration, update the municipal or land records into your name.
What an NRI cannot purchase
Agricultural land, plantation property and farmhouses. See can NRI buy property in India for the full rules.
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
