2 mins Read | 2 Years Ago

Essential NRIs Guidelines to Buy Property in India

Planning to purchase a home for end use or as an investment?


While the real estate sector in India has seen a price correction in the past year, investing in property has become a lucrative opportunity for prospective buyers. Even NRIs/OCIs residing abroad can invest in a property, as per the RBI’s guidelines. But before that, you must go through some of the important guidelines.

Several NRIs (Non-Resident Indians)/OCIs invest in the real estate market in India, typically for investment/residential purpose, so that they can settle back in India, post-retirement. The property sector has seen a massive growth in real estate purchase, not only from the domestic residents, but also from NRIs.

NRI Guide to Buy Property in India

If you are an NRI/OCI, following are some of the guidelines you should keep in mind, before buying a property:

  • Both NRIs and OCI have the permission to buy both commercial and residential property in India. You do not need to submit any intimation or send any communication to the Central Bank for the purchase of a property.
  • NRIs cannot buy agricultural land, plantation or farmhouses in India.
  • NRIs/OCIs do not require special permission for buying immovable property in India. You can sell or gift such a property to any resident in India. Buying the property in INR is acceptable and the funds need to be maintained in a Non-Resident Account under the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India (RBI) regulation.
  • In the case of income through the sale of immovable property, you can repatriate the funds after the deduction of Tax Deducted at Source (TDS) (i.e. between 20% and 30%), depending on whether it is a short-term or long-term capital gain.
  • As an NRI/OCI, you can purchase a property independently or jointly. You can purchase jointly either with a Resident Indian (RI) or an NRI/OCI.
  • If you have a property in India and you later attain an NRI status, you can continue to hold the property in your name.
  • If you want someone to carry out transactions on your behalf, you need to execute a Power of Attorney (PoA). The PoA holder will sign on the NRI’s behalf and conduct property/loan related transactions.
  • A property owned by NRI/OCI can be given out for rent. The rent received from the property can be repatriated after paying applicable taxes (TDS of up to 30%) in India.
  • One needs to do a mandatory background check before buying any property in India. Get a first-hand experience by connecting with existing customers, to know about the property details.
  • These are some of the guidelines for buying a property in India. If you are looking to invest in a property in India, ICICI Bank offers Home Loans/Home Improvement Loans to meet your financial needs. Apply for a Home Loan digitally in 5 simple steps on Express Home Loan (EHL) and get your Loan digitally sanctioned. You may also choose from a range of projects approved for funding from ICICI Bank. Click here to view list of approved projects.

Apply now


People who read this also read

View All


View All

Scroll to top