NRI Buying Property in India: What You Must Know

NRI buying property in India begins with understanding the full scope of benefits, rules, and processes involved. With growing interest among NRIs to invest in their home country, India offers promising opportunities in real estate. From financial gains to emotional security, this guide explains everything an NRI should know.

Key Benefits for NRI Buying Property in India

1. High Return on Investment (ROI): Cities like Hyderabad show steady appreciation, offering great long-term value.
2. Rental Income: Properties can generate monthly income in INR, which is repatriable after taxes.
3. Diversification: Helps NRIs balance their global investment portfolios.
4. Personal Utility: A home in India ensures emotional connection and future residency options.
5. RBI-Backed Repatriation: Easy repatriation of rental income and sale proceeds, with proper documentation.
6. RERA Regulation: Transparent practices make remote investments safer.
7. Tax Benefits:
   • Section 24(b): Deduction of up to ₹2 lakh/year on interest paid on home loans. 
   • Section 80C: Deduction of up to ₹1.5 lakh/year on principal repayment, stamp duty, and registration. 
   • Section 80EE/80EEA: Additional deductions up to ₹1.5 lakh for first-time buyers (subject to conditions).
   • Section 54 & 54EC: LTCG exemptions if reinvested in new property or specified bonds within time limits. 
   • Double Taxation Avoidance Agreements (DTAA): Prevents being taxed in both India and abroad. 
   • Repatriation Rules: Up to USD 1 million/year allowed from sale/rent of two residential properties.

Step-by-Step Purchase Process for NRI Buying Property in India

1. Open NRE/NRO account for fund transfers.
2. Shortlist verified RERA-registered properties.
3. Conduct due diligence: Check title, encumbrances, land use.
4. Execute Power of Attorney (POA) if purchasing remotely.
5. Register the sale deed and pay applicable stamp duty.
6. Ensure PAN and TDS compliance during transactions.

Home Loan & Funding Options

NRIs can avail of home loans from major Indian banks.

• Loans offered in INR.
• Repayment through NRE/NRO accounts.
• Co-applicants can be NRIs or resident Indians.

Funding options also include:

• Self-funding via foreign savings
• Repatriation from existing investments
• Co-financing with relatives

Due Diligence & Legal Checklist

Before finalising a deal, ensure:

1. Property is RERA-registered.
2. Builder has a strong track record.
3. Land has clear title and no encumbrance.
4. All approvals (NOCs, occupancy, land use) are in place.
5. No dues on property tax or utility bills.

NRI buying property in India: Legal Framework & Eligibility

NRIs and OCIs are allowed to:

• Buy residential and commercial property in India.
• Inherit or receive agricultural land as a gift.
• Use NRE/NRO/FCNR accounts for transactions.

However, can nri buy agriculture land in India? Generally, no. Direct purchase of Agricultural land, Plantation property and Farmhouses is prohibited without prior approval from the Reserve Bank of India (RBI).

Why Hyderabad Matters

Among Indian cities, Hyderabad stands out for NRIs due to its IT growth, stable infrastructure, and investment-friendly environment. With consistent ROI and regulated development, it offers high-value options for tech-savvy buyers.

FAQs