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NRI Guide - Investing with Confidence in India

At Nirman Group, we understand that investing in real estate from overseas can be both exciting and overwhelming. Our dedicated NRI Guide is designed to simplify the process and help you make informed decisions with confidence and ease.

Legal Guidelines for NRI Property Investment in India

Investing in Indian real estate as a Non-Resident Indian (NRI), Person of Indian Origin (PIO), or Overseas Citizen of India (OCI) is well-supported by Indian laws. However, understanding the legal landscape is crucial to ensure a smooth and secure transaction. Here’s a comprehensive overview of key legal aspects:

Eligibility & Property Types

As per the Foreign Exchange Management Act (FEMA) guidelines:

NRIs and OCIs can legally purchase:

- Residential properties (apartments, villas, plots) - Commercial properties (shops, offices, etc.)

Not permitted to purchase:

- Agricultural land
- Plantation property
- Farmhouses
(These can only be inherited or gifted, not bought.)

  • Passport (Indian or Foreign with OCI/PIO card)
  • PAN Card (mandatory for taxation and registration)
  • Overseas address proof (utility bill, driver’s license, etc.)
  • Recent photographs
  • Indian address proof (if available)
  • NRE/NRO bank account details
  • Power of Attorney (PoA) (Optional but recommended – see below)

Before purchase, NRIs should confirm:

  • RERA Registration Number of the project
  • Clear title and ownership of the land
  • Approvals from municipal and environmental authorities
  • Encumbrance-free status
  • Drafts of Allotment Letter and Agreement for Sale

At Nirman Group, all our projects undergo legal vetting, and we provide a complete buyer’s legal set.

  • All transactions must be carried out in Indian Rupees (INR) through banking channels.
  • NRIs must use NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts maintained in India.
  • Payments cannot be made in foreign currency directly.
  • Repatriation of funds (sending money back to your resident country) is allowed up to two properties under certain conditions.

If you are unable to be physically present in India to complete the transaction:

  • Every property purchase in India must be legally registered at the local sub-registrar’s office.
  • The buyer must pay: Stamp duty (varies by state), Registration charges & TDS (Tax Deducted at Source) at 1% if the property value exceeds ₹50 lakhs
  • For rental income or capital gains, taxes apply as per Indian tax laws. You may be required to file IT returns in India.

If you are purchasing a property in an under-construction project, Goods and Services Tax (GST) is applicable as per the following:

  • In the case of affordable housing units, defined by specific size and cost criteria under government schemes, the applicable GST rate is reduced to 1%, and Input Tax Credit is also not permitted in this category.
  • For residential properties that fall under the non-affordable housing segment, a 5% GST is applicable on the total property cost. However, buyers cannot claim any Input Tax Credit (ITC) on this amount.
  • If the NRI is purchasing a commercial property under construction, such as office space or retail units, the GST applicable is 12%. In this case, Input Tax Credit is available, which can be utilized as per applicable rules.

Key Notes:

  • GST is applicable only to under-construction properties.

  • No GST is charged on Completed (OC Received) properties where the completion certificate has been issued.

  • GST is usually paid along with each construction-linked payment or milestone, and a proper tax invoice is provided by the builder.

At Nirman Group, we ensure all GST charges are transparently communicated and properly invoiced.

  • NRIs are eligible for home loans from Indian banks and housing finance institutions.
  • Loans are disbursed in INR and can be repaid through:, NRE/NRO accounts or FCNR (Foreign Currency Non-Resident) accounts or even Remittances from abroad

Documentation typically required:

  • Passport & visa

  • Proof of NRI/OCI status

  • Income proof (salary slips, overseas bank statements, tax returns)

  • Employment contract or offer letter

If you are unable to be physically present in India to complete the transaction:

  • You can assign Power of Attorney to a trusted individual (family member, lawyer, representative).
  • PoA must be executed on a legal document, notarized in the resident country, and stamped in India.
  • This allows the representative to handle tasks like signing documents, registration, loan processing, and possession handover.

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