Checklist For NRIs Before Investing In Indian Prop...

Checklist For NRIs Before Investing In Indian Property

NRI Investment In Indian Property

The past few years have seen a steep rise in the India Real Estate. It is observed that Non-Resident Indians (NRI) constitute a significant portion of buyer percentage when it comes to real estate transactions in India. This happens because Indian government makes it easy for non-resident Indians (NRIs) to buy property in India. Currently, an NRI who holds an Indian passport can invest in property, which is not an agricultural land, plantation or a farm house.

If you are an NRI, and are on the lookout for property, here is a list of few important points that helps you to simplify the buying process for you!

Know Your Property Type

The first step that NRI must keep in mind is to ascertain the nature of the property. As per the general permission issued by the Reserve Bank Of India (RBI), an NRI and a Person Of Indian Origin (PIO) are not allowed to buy any land or property connected to agricultural or plantation activities. In such a scenario, they are even ruled out as owners of farm houses in India. What they can buy is immovable properties, subject to fulfillment of other guidelines. NRI Can own both residential as well as commercial properties in India and there is no restrictions on the number of properties that an NRI can purchase in India.


An NRI needs a Permanent Account Number (PAN) card before wishing to make any investment in India, to ease financial procedures later. While it is not a must, it is advisable for the buyer to have an NRI account. If you are making any financial transaction through such an account will increase transparency in dealings and help in keeping record of all property-related payments.

Seller Verification

As per the rules of Foreign Exchange Management ACT (FEMA), while buying a property in India, an NRI can make a financial transaction only when the developer is authorised by the government of India. So before sealing any real estate deal in India, buyer must understand the developer, evaluate their reputation, existing customers, past projects and builder’s credibility in terms of legal record, project deliveries etc.

Payment Of Properties

The remittance of the down payment amount should be done via normal banking channels such as Non Resident Ordinary (NRO) or Foreign Currency Non Resident (FCNR) Account.


According to Income-tax Act, if you buy a property in India, you would have to pay property tax along with stamp duty and registration fees for the property. So, assess all the cost before you plan an investment. Apart from that, if he plans to give out his property on rent and earn money via rent in India, it would subject to income tax.

Check all the offers by developers’ association

Confederation of Real Estate Developers Association of India (CREDAI) organises exhibitions regularly for NRIs and gives a number of offers. These attractive offers cover loans from renowned banks, discounts or allowances where the developer agrees to cover value-added tax (VAT) or registration charges or service charges, easy installments and reducing the upfront payment for a property are also offered. So, it is advisable to study all the CREDAI offers before you finalize any property deal in India.

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Swati loves writing on real estate! Before engaging in what she thinks is ‘serious business’. Currently, she is serving the role of Content Lead and shares her knowledge to appraise investors/end-users about Indian realty sector.