Complete NRI Guide to Buying & Verifying Property in India (2026)
Everything an NRI or OCI needs to know about buying, selling, verifying, or managing property in India , FEMA and RBI rules, Power of Attorney from abroad, remote due diligence, capital gains tax, fund repatriation, and how to avoid the most common NRI property scams.
Table of Contents
1. FEMA & RBI Rules for NRI Property in India
NRI property transactions in India are primarily governed by the Foreign Exchange Management Act (FEMA) 1999 and Reserve Bank of India (RBI) regulations. Getting these wrong can lead to penalties, void transactions, or inability to repatriate funds.
Who Can Buy What
- NRIs and OCIs can buy (without RBI permission): residential property, commercial property , any number of units
- NRIs and OCIs CANNOT buy without special RBI permission: agricultural land, plantation property, farmhouses
- NRIs can inherit any property including agricultural land , inheritance is not subject to purchase restrictions
How NRIs Must Pay
Payment for property must be made through:
- NRE (Non-Resident External) account , funded from foreign earnings
- NRO (Non-Resident Ordinary) account , for income earned in India
- FCNR (Foreign Currency Non-Resident) account
- Direct inward remittance from abroad through a banking channel
Critical: NRIs cannot pay in foreign currency cash, traveller's cheques, or cryptocurrency. All payments must be in Indian Rupees through a regulated bank account. Keep complete payment documentation , it is required for future repatriation.
Home Loans for NRIs
NRIs can take home loans from Indian banks (SBI, HDFC, ICICI, Axis) and HFCs. Repayment must be through NRE/NRO accounts or inward remittances. Most banks offer dedicated NRI home loan products with competitive rates. The property must have clear legal title and Khata A for loan eligibility.
TDS on NRI Property Transactions
When an NRI sells property in India, the buyer must deduct TDS:
- Long-Term Capital Gains (held >24 months): ~12.5% + surcharge + cess (~14–23% effective)
- Short-Term Capital Gains: 30% + surcharge + cess (~34–36% effective)
This TDS is on the entire sale consideration, not just the profit. NRIs can apply for a Lower Deduction Certificate (Section 197) to reduce this. See: Capital Gains Tax for NRIs , 2026 update.
2. Documents NRIs Need
Documents from the NRI (buyer/seller)
- Passport (valid) , Indian passport or OCI card
- PAN card (mandatory for property transactions above ₹10 lakhs)
- Overseas address proof (utility bill, bank statement, driving licence)
- NRE/NRO account statement showing source of funds
- Visa copy / proof of NRI status (employment visa, residence permit)
Documents to Verify on the Property
- Registered Sale Deed chain (30 years minimum)
- Encumbrance Certificate (30 years) , see: What is an EC?
- Mother Deed , see: What is a Mother Deed?
- Khata Certificate & Extract (BBMP) , see: Khata A vs B
- RTC Pahani (for plots/land) , see: RTC explained
- DC Conversion Order (for plots)
- RERA certificate + compliance filings (for new apartments)
- Building Plan Approval + OC/CC (for apartments)
- Property Tax receipts (3 years)
Documents for NRI Selling Property
- All of the above property documents
- TDS certificate (Form 16A) from the buyer after deduction
- Form 15CA and 15CB (CA-certified) for repatriation
- Income Tax Return for the year of sale
- Bank statements showing NRO account credit of sale proceeds
3. Power of Attorney , How to Execute from Abroad
Without being physically present in India, NRIs use a registered Power of Attorney (POA) to authorise a trusted person to handle property transactions on their behalf. A correctly executed POA is the key to managing India property from abroad.
Use a Specific POA, not a General POA. A General Power of Attorney (GPA) is a broad, easily misused document. For property transactions, always use a Specific POA that names the exact property and the exact actions authorised. See: GPA risks.
Step-by-Step: Executing a POA from Abroad
Full guide: How NRIs Can Grant POA for India Property | Our POA drafting service.
4. Remote Property Verification Process for NRIs
NRIs are one of the most targeted groups for property fraud in India. Distance makes it impossible to inspect documents, verify sellers, or detect pressure tactics. Remote verification by an independent property lawyer , before you pay anything , is the single most important step.
What Remote Verification Covers
- 30-year title search at the Sub-Registrar office , not just the documents the seller provides
- Encumbrance Certificate analysis , every entry explained, every mortgage discharge confirmed
- Khata A or B , verified at the BBMP ARO office directly
- RTC and DC Conversion , for plots and land
- RERA status , registration, completion date, compliance filings
- Litigation search , civil court search for the property and the seller
- Building plan and OC/CC , for apartments
- Written legal opinion , signed by a qualified advocate, delivered by email
How the Remote Process Works
Service page: NRI Remote Property Verification.
5. Tax Implications & Repatriation of Sale Proceeds
Capital Gains Tax (2026 Rates)
- Long-Term Capital Gains (property held >24 months): 12.5% + surcharge + cess (effective ~14–23%)
- Short-Term Capital Gains (≤24 months): 30% + surcharge + cess (~34–36%)
- TDS deducted by buyer on entire sale consideration , not just the gain
- Apply for Lower Deduction Certificate (Section 197) if actual tax liability is lower
Tax Exemptions Available
- Section 54 , reinvest LTCG in a new residential property (buy within 1 year before or 2 years after, or construct within 3 years)
- Section 54EC , invest up to ₹50 lakhs in NHAI/RECL bonds within 6 months
- Section 54F , for non-residential asset sales, reinvest full consideration in residential property
Repatriation Process
- Sale proceeds credited to NRO account in India
- Buyer deducts and deposits TDS; issues Form 16A to NRI
- NRI files ITR in India for the year of sale
- CA issues Form 15CB; NRI files Form 15CA on Income Tax portal
- Bank processes remittance from NRO to overseas account
RBI limit: USD 1 million per financial year from NRO account. Repatriation of proceeds from >2 residential properties requires RBI approval. Properties originally bought with NRE funds can be repatriated beyond this limit.
Full guide: How to Repatriate Funds from India Property Sale as an NRI.
6. Common NRI Property Scams to Avoid
NRIs are specifically targeted for property fraud because distance creates an information asymmetry that fraudsters exploit. These are the most common scams.
Relatives or strangers forge sale deeds or GPA documents for property you own in India and sell it without your knowledge. Maintain contact with a local caretaker or property manager and verify the EC periodically to detect any new registrations.
Agricultural land near Bangalore corridors is sold at residential-plot prices with the assurance that DC conversion is "coming soon." NRIs , who cannot easily visit , are prime targets. Never buy land where the DC Conversion Order is not already in hand.
The same property is sold to two different buyers , one abroad, one locally. The person who registers first gets the title. The NRI who paid but registered second loses both the property and their money. Solution: register the Sale Deed quickly through your POA holder and check the EC just before registration.
A project website and sales brochure are created for a project that either does not exist or is not RERA-registered. NRIs pay booking amounts based on slick marketing. Always verify the RERA number directly on rera.karnataka.gov.in before paying.
A POA originally given to a family member for limited purposes is used to sell the entire property. Review and revoke any existing POAs that are no longer needed. Use specific, time-limited POAs.
A broker quotes a price significantly above market value to an NRI who cannot easily compare locally. Always get an independent market valuation and cross-check with recent registration data on the Kaveri portal before agreeing to a price.
Also see: Property Fraud in Bangalore , real cases and how to protect yourself.
7. How Clawrity Works Remotely for NRIs
Clawrity is a Bangalore-based property legal services firm. All our NRI services are designed to be handled completely remotely , video calls, email, WhatsApp, and a properly executed POA replace the need to travel to India for most property matters.
What We Do for NRI Clients
- Property verification before purchase , title search, EC, Khata, RTC, RERA, litigation check, written legal opinion. See: NRI Remote Verification
- POA drafting and registration , specific POAs for purchase, sale, or management. See: Power of Attorney service
- NRI property dispute resolution , illegal occupation, title disputes, inheritance disputes, RERA complaints. See: NRI Dispute Resolution
- Ancestral and inherited property , succession certificates, mutation, partition assistance. See: Partition & Settlement
- Sale assistance for NRIs , due diligence for buyers, TDS guidance, repatriation documentation coordination
- Lease and rental management , lease agreement drafting, tenant vetting, eviction proceedings for NRI landlords
Our Process
Video call or WhatsApp to understand your situation and advise on the best course of action. No commitment required.
We confirm exactly what we will do and the total fee , before starting. Full transparency.
Our lawyers handle all ground-level work in Bangalore and Karnataka on your behalf.
Written deliverables (legal opinion, reports) by email. Updates at every key step. Calls in your time zone.
Success Stories
"We helped an NRI client based in the UAE verify a ₹95 lakh apartment in Whitefield before purchase. Our title search revealed a discrepancy in the seller's acquisition , the Mother Deed chain had a 3-year gap. We advised against the purchase. The client subsequently found the discrepancy was due to an unregistered family settlement that could have led to a legal dispute after registration."
"An NRI in the UK discovered their family property in Bangalore had been occupied by a relative following the death of their parent. We initiated a civil suit and obtained a court injunction within 3 weeks, preventing further encroachment and preserving the client's right to the property while succession proceedings were underway."
"An NRI couple in Singapore wanted to buy a plot in Devanahalli for investment. Our RTC check revealed the land was still classified as agricultural with no DC Conversion Order and was also within 200 metres of a government-reserved forest boundary. We saved them from purchasing an asset that could not be developed."
8. Frequently Asked Questions , NRI Property India
NRI Property Consultation
All consultations are remote , video call or WhatsApp, in your time zone. Tell us what you need and we will advise before you commit.
Book a Consultation WhatsApp UsBuying or Selling Property in India from Abroad?
Don't let distance put your investment at risk. Our property lawyers handle everything remotely , verification, POA, dispute resolution, and tax coordination , so you can transact with confidence.