The NRI guide to buying property in India, 2026

For Non-Resident Indians, buying property in India in 2026 is administratively easier than it has ever been, but still materially different from buying while resident. Funds must route through permitted banking channels. Registration is usually done through a Power of Attorney. Home loan eligibility is a parallel regime with its own rules. And taxation — both during the hold and at exit — has quirks that can reshape the return profile.

This guide is for the NRI buyer considering a luxury under-construction purchase like Forbes Fab Luxe Residences in Greater Noida West. It covers what FEMA permits, how to fund the purchase, how NRI home loans differ, what documentation you need, and the tax position on rental income and eventual sale.

Who counts as an NRI for property purposes

Two separate definitions matter. FEMA defines an NRI as an Indian citizen or person of Indian origin resident outside India. Income Tax Act defines residential status based on days of stay in India. You can be an NRI under FEMA and a resident under the Income Tax Act simultaneously if you came back mid-year — which affects how your rental income is taxed. Check both definitions before transacting.

What NRIs can and cannot buy

Funding the purchase — the only permitted routes

Every rupee that goes into an NRI property purchase must come from one of these sources. Do not fund from a savings account held by a family member in India unless you have received those funds as a loan through proper FEMA channels.

• NRE account: Funds remitted from overseas earnings. Fully repatriable.
• NRO account: Indian source income (rent, dividends, pension). Repatriation capped under FEMA rules per financial year.
• FCNR deposit: Foreign currency deposit that can be used as own-funds contribution.
• Home loan from an Indian bank: Disbursed directly to the developer; EMI serviced from NRE, NRO or FCNR accounts.
• Inward remittance from overseas: Wired from your overseas bank directly to the developer's collection account, with proper FIRC documentation.

NRI home loans — how they differ

Indian banks extend home loans to NRIs at comparable rates to resident borrowers, but with a few structural differences.

For the full document checklist applicable to luxury loans, see our home loan checklist for luxury apartments. NRI applications need additional items on top of the domestic list.

NRI-specific additional documents

• Valid passport with visa and residence permit
• Work permit or employment letter from current employer abroad
• Last 6 months' overseas bank statements
• Overseas credit score report (where available)
• Overseas tax filings for last 2 years
• PIO / OCI card if applicable
• Registered Power of Attorney in favour of a resident Indian (usually family)

Power of Attorney — the single most important document

Most NRI buyers cannot be present physically for booking, registration, bank formalities, loan disbursement, possession hand-over, interior fit-out supervision and eventual resale. A Power of Attorney (POA) in favour of a trusted resident Indian — usually parent, sibling or spouse — handles all of this.

How to execute the POA

1. Draft the POA specifying the exact powers granted (booking, registration, loan application, possession, leasing, sale). A generic all-purpose POA is often rejected by sub-registrars.
2. Sign it in front of the Indian Embassy / Consulate in your country of residence, OR before a notary public with subsequent apostille / attestation.
3. Send the original by courier to India.
4. The POA holder must register the POA at the sub-registrar's office in India within three months of execution, paying stamp duty as applicable in that state.
5. Keep certified copies. Every bank, registrar and developer will request a separate copy.

Tax position — rental income while you hold

Rental income from property in India is taxable in India for NRIs under the head "Income from House Property." The tenant is required to deduct TDS at 31.2% (including cess) and deposit it against the NRI landlord's PAN. At year-end, the NRI files an ITR in India, claims actual expenses (Section 24 interest, 30% standard deduction, municipal taxes) and receives a refund where TDS exceeds actual liability.

• Tenant must obtain a TAN to deduct TDS
• NRI landlord must have a PAN and file annual ITR
• Section 24 interest deduction on home loan is available (capped at ₹2 lakh for self-occupied; uncapped for let-out)
• Rental income can be credited to NRO account; repatriable subject to FEMA limits
• DTAA (Double Taxation Avoidance Agreement) with your country of residence determines whether tax paid in India can be offset against tax due in your home country

Tax position — on eventual sale

Capital gains on sale of property in India by an NRI:

• Held > 24 months: long-term capital gains at 20% with indexation (subject to current rules)
• Held ≤ 24 months: short-term capital gains at slab rates
• Buyer must deduct TDS — typically 20% plus applicable surcharge and cess for long-term; up to 30% for short-term
• NRI seller can apply for a lower / nil TDS certificate from the jurisdictional Assessing Officer before the sale, if actual tax liability is lower than the default TDS rate
• Reinvestment exemptions available under Section 54 (new residential property) and Section 54EC (bonds) apply to NRIs on the same terms as residents
• Repatriation of sale proceeds: if funded from NRE / inward remittance, fully repatriable after tax clearance; if funded from NRO, limited to US$1 million per financial year

Fab Luxe booking steps — an NRI walkthrough

1. Identify the unit: Over video, we walk you through floor plates, views, and the 3BHK vs 4BHK decision.
2. Execute POA: Notarise in your country, apostille / attest, courier to India. Your POA holder registers it in India.
3. Remit booking amount: Wire from NRE / NRO or overseas account directly to the developer's collection account, obtain FIRC.
4. Apply for home loan: Upload documents to the NRI desk of the chosen bank. Sanction typically in 15-20 working days.
5. Sign booking application: Your POA holder signs in India once sanction is in hand.
6. Stamp duty and registration: Your POA holder pays and registers, typically 30-60 days after booking.
7. Track construction: Periodic video site visits. The developer raises milestone demand notes; the bank disburses directly.
8. Possession in December 2028: Your POA holder takes handover, signs the handover document, coordinates interior fit-out.

Five common NRI mistakes to avoid

1. Funding from a resident relative's account: creates FEMA non-compliance risk and can complicate future repatriation.
2. Executing a POA that is too narrow or too broad: too narrow and it cannot cover each step; too broad and it gets questioned at the sub-registrar. Specific-purpose POA works best.
3. Not obtaining FIRC for each remittance: the FIRC is your proof of inward remittance for future repatriation.
4. Ignoring the TDS-on-rent compliance burden on the tenant: helping your tenant obtain TAN and file TDS returns prevents future disputes.
5. Selling without a lower-TDS certificate: the buyer's default TDS rate leaves a large refund stuck with the tax department for months.