Buying property in India as an NRI — the execution guide

An NRI buying property in India today is operating in a very different environment from even a decade ago. The Real Estate (Regulation and Development) Act, 2016 (RERA) has turned most of the buyer-side legwork into portal lookups; home-loan approvals are routine and largely digital; and stamp duty varies enough between states that two identical flats in Pune and Hyderabad can differ by lakhs in acquisition cost. The rules on what an NRI can buy have been stable for years — it is the how that rewards care.

For the eligibility framework (NRI / OCI / PIO, what is allowed, what isn't), see our buying and selling overview. For the post-purchase housekeeping, see property registration. This article focuses on the execution — getting the money into an approved building, in the right name, through the right rails, with the right paperwork.

RERA — the single most useful pre-check

Before looking at brochures, pull up the project on the state RERA portal. Every new project of more than 500 sqm or 8 units is required to be RERA-registered before it can advertise or accept money, and the portal carries:

The registration number to match on the sale agreement.
Carpet area, not super-built-up, as defined by RERA (so you compare like-for-like).
Approved plans and layouts, stamped.
The promoter's past projects, complete with completion status and any ongoing complaints.
Quarterly progress updates from the builder.
Any withdrawals, penalties, or complaints filed against the project.

State portals vary in layout but all carry this core data:

Maharashtra — maharera.mahaonline.gov.in
Karnataka — rera.karnataka.gov.in
Telangana — rera.telangana.gov.in
Tamil Nadu — tnrera.in
Delhi NCR — rera.up.gov.in and haryanarera.gov.in

If a "project" is not registered where it should be, that is disqualifying. For resale purchases the original project RERA registration is still worth checking — occupancy certificates, plan deviations, and outstanding complaints all surface there.

The funding mix

An NRI can pay for Indian property through any combination of:

Inward remittance from abroad through normal banking channels (SWIFT, bank remittance apps).
Debit to an NRE, NRO, or FCNR(B) account held in India.
Home loan from an Indian bank or housing finance company (HFC).
Indian rupee sources acquired while the NRI was still a resident (already-held bank balances).

Not permitted:

Foreign currency notes, travellers' cheques, or any physical cash.
Payment from a resident relative's account on the NRI's behalf (though a relative can repay an NRI's home loan under a separate permitted facility).
Offshore payments direct to the builder — the entire consideration must flow through Indian banking channels.

Keep every payment trail — the NRE/NRO bank statement, the inward remittance advice (FIRC), and the home-loan disbursement letter — as source evidence. This paper trail is what establishes Path A (foreign-exchange-funded) versus Path B (rupee-funded) when the property is eventually sold and the proceeds are repatriated. See our selling article for why that distinction matters.

Home loans for NRIs

Indian banks and HFCs actively lend to NRIs. The broad terms that apply in 2026:

Loan-to-value: typically 75–80% for residential, 50–60% for commercial.
Tenure: usually 15–20 years, capped to retirement age; a 30-year tenure is now rare.
Interest rate: floating, linked to a bank's external benchmark lending rate (EBLR) — usually the RBI repo rate plus a spread. Expect 100–150 bps above resident rates at most lenders.
EMI source: payable from an NRE, NRO, or FCNR account, or by inward remittance. RBI allows a resident close-relative to repay an NRI's home loan through banking channels under Regulation 8A of FEMA 4.
Co-applicant: most lenders require a resident Indian co- applicant — typically the spouse or a parent — especially for larger sanctions.
Documentation: passport, visa / OCI card, overseas employment letter, six months of overseas salary slips, two years of overseas bank statements, Indian PAN, local address proof, CIBIL (for any prior Indian borrowing).

Active NRI lenders include SBI NRI, HDFC Bank, ICICI Bank, Axis, Kotak, LIC Housing Finance, Bajaj Housing, and Bank of Baroda. Most process loans end-to-end digitally — upload, e-sign, disbursement to builder / seller.

Under-construction projects: the bank disburses against construction-linked stages tied to the builder's RERA-registered milestones. Pre-EMI interest accrues during construction; full EMI starts on final disbursement or on a cut-off date set in the sanction letter.

GST on under-construction property

This trips up buyers who expect the total outgo to equal the "base price" they were quoted:

Under-construction residential (non-affordable): 5% GST on the consideration, no input-tax-credit benefit to the buyer.
Affordable housing (carpet area ≤ 60 sqm metro / 90 sqm non- metro, value ≤ ₹45 lakh): 1% GST.
Under-construction commercial: 12% GST.
Ready-to-move property (occupancy certificate received and dated before sale): no GST.

Completion certificate or occupancy certificate (OC) status is therefore decisive. A builder selling a flat on an "under- construction" basis but technically already OC'd has either made an error or is trying to charge GST on a transaction that does not attract it — confirm OC date before agreeing to GST.

GST is in addition to stamp duty and registration.

Stamp duty and registration — the state-by-state difference

Unlike GST, stamp duty is state-specific and meaningfully different:

State	Stamp duty	Registration
Maharashtra (Mumbai, Pune)	5–6% (male) / 4% (female)	1% (cap ₹30,000 in some cases)
Karnataka (Bengaluru)	5%	1%
Delhi	4% (female) / 6% (male)	1%
Haryana (Gurgaon, Faridabad)	5% (female) / 7% (male)	~1%
Uttar Pradesh (Noida, Greater Noida)	6% (female) / 7% (male)	1%
Tamil Nadu (Chennai)	7%	4%
Telangana (Hyderabad)	5% (plus 1.5% transfer duty)	0.5%
West Bengal (Kolkata)	6–7%	1%
Gujarat (Ahmedabad)	4.9%	1%

Rates shift with state budgets — confirm the current rate at the time of registration. Many states give a concession for female or joint-female ownership (typically 1% off the duty) and a few (Maharashtra, Karnataka) run periodic stamp-duty rebates that meaningfully change the arithmetic.

For an NRI, registering the property jointly with a resident spouse or parent can capture the female-buyer rebate in states that offer it — subject to that co-owner's own eligibility and the FEMA source-of-funds documentation.

TDS on the buyer side — 194-IA vs 195

An NRI is usually the buyer here, not the seller. But the choice of TDS section on the purchase depends on who the seller is:

Seller is a resident Indian: Section 194-IA, 1% TDS on the sale consideration if it is ₹50 lakh or more. Deposited using Form 26QB on the income-tax portal, no TAN needed — seller's PAN and buyer's PAN are enough.
Seller is an NRI: Section 195, at LTCG / STCG rates (12.5% LTCG without indexation post-Budget 2024, or slab rate for STCG), on the full sale consideration unless a Lower-TDS certificate is obtained. The buyer must have a TAN and file Form 27Q quarterly. This applies regardless of sale price.

Two practical consequences for an NRI buying from another NRI (increasingly common as the first wave of NRI investors sell to a second wave):

Get a TAN early. Not just a PAN. Section 195 deduction without a TAN is a compliance default.
Insist the NRI seller supplies a Lower-TDS certificate (Form 13 on TRACES) or accept that you will withhold a large amount against their eventual refund.

See the NRI selling article for the seller-side view of the same mechanics.

Power of attorney — the remote-buy instrument

Most NRIs are not in India on the day of registration. A registered Power of Attorney (POA) in favour of a trusted person in India is the normal workaround.

Key requirements:

Registered, not merely notarised. Most sub-registrars now insist on registration in India, even when the document was first executed abroad.
If executed abroad, apostilled (for Hague Convention countries — US, UK, Australia, most of EU) or consularised at the Indian consulate (for non-Hague countries — UAE, Saudi Arabia, until those ratified). Then presented for registration in India within the time limit set by the state.
Specific, not general — identify the exact property (survey number, address, extent), the transaction (purchase from named seller at named consideration), and the authorisations (sign sale deed, receive payment, pay stamp duty, register, obtain mutation). A broad "manage all my affairs" POA is routinely rejected at sub-registrar offices for property purchases.
Properly stamped per the state Stamp Act.

For the detailed mechanics, see our POA sale/purchase article.

Due diligence — what a lawyer actually checks

Budget for an independent property lawyer — not the builder's "on-panel" lawyer. Standard NRI-side due diligence covers:

Title chain — 30-year back-chain of ownership via original deeds and certified copies.
Encumbrance Certificate (EC) for at least 15 years (30 in some states) from the sub-registrar's office, showing no charges, mortgages, or liens.
Khata / mutation records showing the seller as the lawful record-holder.
Property tax paid up to date, with receipts.
Approved building plan matched against actual construction (common deviations for builders).
Completion / Occupancy Certificate for built property.
No-objection certificate (NOC) from the society / RWA / builder, where the property is in a cooperative scheme.
Pending dues — maintenance charges, utility bills, any legal notices.
Litigation search in local civil courts and consumer forums.

Fees typically run ₹15,000–₹50,000 depending on city and complexity. A family-member lawyer is fine; a builder's "free" legal opinion is not.

Step-by-step sequence

PAN — essential before any step. If the NRI doesn't have one, apply early; processing runs 2–3 weeks.
RERA check — verify the project on the state portal.
Shortlist and physical visit — ideally at least once by the NRI or by a trusted family member with full photos / video.
Independent legal opinion — title, EC, approvals.
Home-loan pre-approval — if borrowing; sanction in principle before agreement.
Agreement to sell — signed, with earnest money (typically 10–20%). RERA-mandated model agreement clauses apply.
Stamp duty and registration of the agreement — in many states now mandatory under RERA for projects covered by Section 13 of the Act.
Funds transfer — NRE / NRO / inward remittance / loan disbursement. Every tranche documented.
TDS deduction — under 194-IA (resident seller) or 195 (NRI seller) as applicable. Deposited within 30 days of the end of the month of deduction.
Sale deed execution — on completion of payment, signed at the sub-registrar's office (by NRI in person or POA-holder).
Registration — sale deed registered, stamp duty and registration fee paid. Original registered deed typically collected 1–4 weeks later.
Mutation — update in municipal / revenue records to reflect NRI as owner for property-tax purposes. Usually 4–12 weeks.
Society transfer — if the property is in a cooperative or condominium, apply for share-certificate transfer with NOC and society fees.

Common pitfalls

Paying before RERA check. Multiple NRIs have lost booking advances to projects that turned out to be unregistered or whose registration had lapsed.
Cash or foreign-currency top-ups at the builder's request. FEMA violation; also a typical sign of an under-declared sale price on deed.
Accepting "super built-up" pricing. RERA mandates pricing on carpet area. Compare on carpet, not super-built-up, or the cost per square foot mismatches the neighbourhood.
Not getting GST in writing. Some builders quote base + stamp duty and forget to mention GST on under-construction. Add it up front.
Under-declared deed value to save stamp duty. This is a long-tail problem — on future sale, your cost of acquisition for capital-gains purposes is capped at what is shown on the deed, so under-declaring today directly enlarges the taxable gain later.
Buying from a POA-holder who is not the actual owner. Persistent fraud pattern. Do not pay unless the registered owner executes the deed, or the POA is beyond all doubt (registered, unrevoked, specific, and recent).
Overlooking the 194-IA / 195 TDS distinction. Deducting 1% when buying from an NRI is a material default that will surface at the NRI seller's ITR stage and during repatriation.
Missing the Section 195 TAN requirement. Buying from an NRI seller without a TAN on the buyer delays the entire transaction while the TAN is applied for.
Skipping mutation. The sale deed is registered but the revenue records still show the seller. Tax notices, litigation, and resale paperwork all snag here.
Loaning against an under-construction project that later stalls. EMIs continue while possession is delayed by years; RERA refunds are available but not instantaneous. Prefer near-possession or ready stock unless the builder has a strong delivery track record.
Assuming the property qualifies as "affordable" for 1% GST when it is just under the carpet-area cap but over the ₹45 lakh price cap (or vice versa). Both conditions must be met.

Bottom line

Buying Indian property as an NRI is, in the RERA era, a well-mapped transaction — no special RBI permissions for residential or commercial property, well-developed loan products, and clear documentary rails. The two things that still need deliberate attention are the TDS treatment (correct section, correct rate, correct buyer-side paperwork) and the FEMA source-of-funds trail (preserving the distinction between NRE-funded and NRO-funded money for future repatriation). Build a team — one lawyer, one CA, one lender relationship — before the first payment leaves the bank, not after.