FAQ · NRI

NRI Property Investment in India: FAQs on Rules, Tax and Process

NRI investors face a distinct rulebook — FEMA eligibility, NRO/NRE routing, TDS on sale and repatriation caps. This page answers the recurring questions directly, reflecting rules as they stand after the Finance Act 2024 changes.

Annual repatriation limit
USD 1M
LTCG rate, no indexation
12.5%
TDS on NRI sale, pre-certificate
20%+
Core jurisdictions served
5

What the data says

  • NRIs can buy residential and commercial property freely under FEMA but not agricultural land, plantations or farmhouses.
  • A Power of Attorney lets transactions complete without travel, provided it is properly executed and apostilled.
  • Post-2024, LTCG on property is 12.5% without indexation — this changes exit-price sensitivity versus the older 20%-with-indexation regime.

How EstateVeda executes this

  • FEMA-compliant fund routing through NRE/NRO accounts before purchase.
  • POA drafting and apostille coordination in the country of residence.
  • Purchase, registration and post-purchase compliance filing support.
  • Lower-deduction certificate planning ahead of any future sale.

Risks we underwrite against

  • TDS over-withholding at sale locking up capital for months pending refund.
  • DTAA relief lost through inadequate documentation of Indian tax paid.

EstateVeda verdict

Structure repatriation and tax certificates before you buy, not when you sell — that single sequencing decision determines how much of the return you actually keep.

Frequently asked questions

Can an NRI buy property in India without visiting?

Yes, through a duly executed and apostilled Power of Attorney given to a trusted representative or advisor in India, who can complete documentation, payment and registration on the NRI's behalf.

What property can NRIs not buy?

NRIs cannot purchase agricultural land, plantation property or farmhouses under FEMA. Residential and commercial property purchases are otherwise unrestricted in number or value.

What is the TDS rate when an NRI sells property?

TDS is deducted at a higher rate for NRI sellers (effectively 20%+ including surcharge and cess on long-term gains) unless the seller obtains a lower-deduction certificate under Section 197 before the sale.

How is capital gains tax calculated for NRIs post-2024?

Long-term capital gains on property sold after the Finance Act 2024 are taxed at 12.5% without indexation benefit, replacing the earlier 20%-with-indexation option for most cases.

How much money can an NRI repatriate after selling property?

Up to USD 1 million per financial year from NRO account balances, including sale proceeds, subject to Form 15CA/15CB certification confirming applicable taxes have been paid.

Can NRIs get a home loan in India?

Yes, most Indian banks and NBFCs offer home loans to NRIs, typically with a lower loan-to-value ratio and requiring a resident co-applicant or additional documentation.

Do NRIs pay property tax the same as residents?

Municipal property tax applies identically regardless of residency status. Income tax treatment of rental income and capital gains, however, involves NRI-specific TDS and filing requirements.

Is a lower-deduction certificate worth applying for before selling?

Yes for most NRI sellers — without it, buyers withhold TDS at the higher flat rate on the full sale value, whereas the certificate limits withholding closer to the actual tax liability, avoiding a long refund wait.

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