NRI Desk · United States

Buying Property in India from the United States

US persons are taxed on worldwide income regardless of Indian residency status. That single fact reshapes the entire structure — reporting first, purchase second.

US tax basis: Worldwide
Reporting threshold applies: FBAR
India–US credit available: DTAA
India LTCG on exit: 12.5%

What the data says

Indian rental income and capital gains must be reported on the US return, with foreign tax credit for Indian tax paid.
Indian bank accounts funding the purchase can trigger FBAR and FATCA reporting obligations.
The US is a Hague state, so POAs can be apostilled through the relevant Secretary of State.

How EstateVeda executes this

Coordinated India–US tax position mapped before purchase.
NRE/NRO structuring with reporting implications documented.
Special POA drafted in India, notarised and apostilled in the US.
Annual reporting calendar covering both jurisdictions.

Risks we underwrite against

Missed FBAR/FATCA filings carrying disproportionate penalties.
Mismatched tax years delaying the foreign tax credit by a full cycle.
PFIC exposure where the Indian investment is a fund rather than direct property.

EstateVeda verdict

Direct property, cleanly reported in both jurisdictions, funded from NRE. Avoid pooled Indian vehicles that create PFIC complexity.

Frequently asked questions

Do US-based NRIs pay US tax on Indian rental income?

Yes. US persons are taxed on worldwide income, with a foreign tax credit available for Indian tax paid under the India–US DTAA.

Can an OCI holder buy property in India?

Yes — OCI cardholders may purchase residential and commercial property, but not agricultural land, plantations or farmhouses.

How do US NRIs execute documents remotely?

Through a Special Power of Attorney notarised in the US and apostilled by the relevant Secretary of State, then adjudicated and registered in India.