Eligibility, banking, power of attorney, tax and management — the whole process from abroad.
NRIs and OCI cardholders can buy residential and commercial property in Ahmedabad under general permission, with no limit on the number of properties; only agricultural land, plantations and farmhouses are excluded from purchase. Payment must route through NRE, NRO or FCNR accounts or normal banking channels, a PAN is required, and a registered power of attorney is generally needed if you cannot travel for registration.
The legal position for NRI property purchase in India is more permissive than many buyers expect. What creates difficulty is not eligibility but execution: getting a power of attorney recognised, routing money correctly, verifying a property you cannot inspect, and managing it afterwards.
This guide covers each of those, in the order they arise.
NRIs and OCI cardholders may purchase residential and commercial property in India under general permission, with no cap on the number of properties. Agricultural land, plantation property and farmhouses cannot be purchased, though they may be acquired through inheritance.
If a seller suggests a structure that works around the agricultural land restriction, treat that as a serious warning — such arrangements are challengeable and leave you exposed.
Funds must move through normal banking channels or from NRE, NRO or FCNR accounts. Payment in foreign currency directly, or through informal channels, is not permitted.
How the purchase is funded matters later. The source of funds affects your position on repatriating sale proceeds, so keep clear records of which account each payment came from — this becomes important years afterwards when you sell.
If you cannot travel for registration, you will need a registered power of attorney authorising someone in India to act for you. The usual route is execution before an Indian consulate or embassy in your country of residence, or local notarisation followed by apostille where that country is party to the Hague Convention. It must then be adjudicated and stamped in India before use.
This process takes weeks and varies by country. It is the single most common cause of delay in NRI transactions, purely because it is started too late.
Video walkthroughs help but do not substitute for someone physically inspecting on your behalf and, critically, verifying title independently of the seller.
Have the chain of title traced, an encumbrance certificate obtained, and — for under-construction property — the RERA registration verified on the official register rather than accepting a number from marketing material.
Indian lenders offer home loans to NRIs, generally at a lower loan-to-value ratio and shorter tenure than for residents. Repayment must be made through NRE or NRO accounts or by remittance from abroad.
Documentation requirements are heavier — overseas income proof, employment verification and often an attested set of documents. Allow more time than a resident purchase would need.
Rental income from Indian property is taxable in India, and you may have filing obligations both in India and in your country of residence, subject to any applicable double taxation treaty.
On sale, tax is deducted at source at rates materially higher than for resident sellers, depending on whether the gain is long or short term. A lower deduction certificate can often be obtained where the actual liability is less than the default TDS — worth arranging before the sale rather than reclaiming afterwards.
Repatriation of sale proceeds is permitted subject to conditions relating to how the purchase was funded and applicable limits. Because this interacts with tax and is fact-specific, coordinate with a chartered accountant rather than relying on general guidance.
This is where most NRI owners struggle. Rent that arrives irregularly, maintenance handled by a relative doing you a favour, no documentation of condition, and no reliable record of what was spent.
Professional management addresses this: tenants sourced and verified, rent collected into your NRO account, maintenance quoted and approved before spend, scheduled inspections with photographs, and written periodic reporting.
Overseas buyers often shortlist West Ahmedabad for liquidity and amenity depth, then underestimate post-purchase management. Plan banking, power of attorney and property oversight before registration.
Title and RERA checks remain the same as for resident buyers; the difference is coordination — remote decision-making needs clearer written scopes and reporting.
No. NRIs and OCI cardholders cannot purchase agricultural land, plantation property or farmhouses in India, though these can be acquired by inheritance. Gujarat additionally restricts agricultural land purchase generally based on the buyer's agriculturist status. Any structure proposed to work around this should be treated as a warning rather than a solution.
Not if you execute a registered power of attorney authorising someone to act for you at registration. Because the execution, attestation or apostille, and adjudication process takes several weeks and varies by country, start it well before you need it.
Rental income is taxable in India, with a standard deduction on net annual value and deduction available for home loan interest. Tenants may be required to deduct tax at source on rent paid to an NRI. You may also have reporting obligations in your country of residence, with relief under any applicable double taxation treaty. Take advice from a chartered accountant on your specific position.
Generally yes, subject to conditions on how the original purchase was funded, the number of residential properties involved, and applicable annual limits from NRO accounts. Keeping clear records of the funding source from the outset makes this substantially easier years later.
Relying on a relative or friend to handle verification and management informally. It is well-intentioned and it consistently produces the same outcomes: no independent title verification, no documented property condition, no record of maintenance spend, and no recourse when something goes wrong. Professional handling costs money and removes exactly those risks.
Tell us where you are based. We will map the power of attorney route for your jurisdiction and handle everything locally.