A good number of the enquiries we get are from NRIs: families in Dubai, Singapore, London and the US who want a home near their parents in Gurugram, or a base for when they move back. The good news is that buying as an NRI is straightforward, as long as the money moves the right way. Here’s how it works.

Can you buy?

Yes. Under RBI rules, an NRI or OCI cardholder can buy any residential or commercial property in India without RBI permission. The only exclusions are agricultural land, plantation property and farmhouses, none of which apply to an apartment at Aravista. There’s no limit on how many homes you can buy.

How you can pay

Payments must come through normal banking channels:

  • an inward remittance from abroad, or
  • a debit to your NRE, FCNR(B) or NRO account in India.

You can’t pay with foreign currency notes or traveller’s cheques. Keep every bank statement and the foreign inward remittance certificates (FIRCs) safe, because you’ll need them if you ever want to send the sale money back abroad.

Which account to use

This matters more than people expect. Money paid from your NRE or FCNR account, or remitted fresh from abroad, is what you can later repatriate. Money paid from your NRO account counts as Indian-source money and falls under a separate yearly limit when you send it out.

Home loans for NRIs

Most Indian banks lend to NRIs on similar terms to resident buyers, usually up to 75% of the value for a home at this price. You repay in rupees from your NRE or NRO account. Banks will ask for your passport and visa, overseas employment and salary proof, and your overseas credit history in some cases. Our home loan guide covers the rest.

The 1% TDS you deduct

When you buy a property worth ₹50 lakh or more from a resident seller, you as the buyer must deduct 1% TDS from each payment and deposit it with the tax department. For an Aravista home, that means 1% of each instalment you pay to L&T. You’ll need a PAN to do this, so get one before you book if you don’t already have it.

Power of attorney

If you can’t be in Gurugram for every signature, you can give a family member a power of attorney. If you sign it abroad, it usually needs to be attested at the Indian embassy or consulate, then stamped in India within the deadline. Keep the PoA specific to this property and these transactions.

When you sell

  • The buyer deducts TDS on your capital gains under Section 195. This can be much higher than 1%. You can apply for a lower deduction certificate before the sale to avoid a long wait for a refund.
  • Sale proceeds can be repatriated up to the amount you originally paid in foreign exchange or from NRE/FCNR funds, for up to two residential properties.
  • Anything beyond that, or money that came from your NRO account, falls under the USD 1 million a year limit for NRO repatriation, with the usual CA certificate and forms.

Our honest advice

Tax rules are the part most likely to change, and they also depend on where you live. A short call with a chartered accountant who handles NRI property is money well spent before you book.

We regularly arrange video walkthroughs and site visits timed around trips home. Our site visit guide has the details.

Living abroad? Book a video call about Aravista.

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