Regulatory Framework
NRIs can purchase residential and commercial property in India without RBI approval under FEMA (Foreign Exchange Management Act). Agricultural land, plantation property, and farmhouses are excluded.
Funding the Purchase
- Remit funds via NRE // FCNR account — fully repatriable
- Use NRO account for rental income reinvestment — partially repatriable (USD 1M/year)
- NRI home loans are available from SBI, HDFC, ICICI at 8.5–9.2% p.a.
Power of Attorney
Execute a notarised, apostilled PoA in the country of residence naming a trusted representative in India for document signing and registration.
Tax Implications
TDS of 20% applies on short-term capital gains (held < 2 years). Long-term gains (> 2 years) attract 12.5% with indexation removed post-2024 budget amendments.
Recommended Corridors for NRIs
Golf Course Ext Road and New Gurugram (Sectors 81–95) offer the best combination of price point, builder credibility, and liquidity for NRI investors.