Home Buyers · NRI✈️ Updated 10 Nov 2026 · ⏱ 11 min read
NRI Buying a Flat in India RERA Rights, FEMA Rules and Buying From Abroad
Buying in India from Dubai, Toronto or Sydney means trusting people and paperwork you can't see. FEMA decides how the money moves; RERA decides what the builder owes you. Here is how both work for an NRI buyer.
Quick Answer
NRIs and OCI cardholders can buy residential and commercial property in India without RBI permission (not agricultural land, plantations or farmhouses). Pay through NRE, NRO or FCNR accounts or inward remittance, never cash. Use a specific power of attorney if you can't be present. Your RERA rights are the same as a resident buyer's, and you can complain online.
At a Glance
Can NRIs buy flats?:Yes, no RBI approval
Not allowed:Agricultural land, plantations, farmhouses
Pay from:NRE / NRO / FCNR / remittance
If buying from a resident:Same TDS as residents (1% at ₹50L+)
Repatriation:Up to 2 homes (foreign funds)
RERA rights:Same as any allottee
What FEMA Allows
NRIs and OCI cardholders
Residential flats, houses, plots
Allowed, any number
Commercial property
Allowed
Agricultural land, plantations, farmhouses
Not allowed (except by inheritance)
RBI permission
Not needed for permitted property
How to pay
Inward remittance, or NRE, NRO or FCNR(B) account
Not allowed
Cash, traveller’s cheques, foreign currency notes
Which account you pay from matters later. Money paid from foreign remittances or NRE/FCNR accounts can be repatriated when you sell, for up to two residential properties. Money paid from an NRO account comes back under the NRO limit of USD 1 million a financial year, with tax paperwork. Keep every bank advice and foreign inward remittance certificate.
Your RERA Rights Are the Same
RERA doesn’t treat an NRI differently. Every protection applies to you as an allottee:
Check the project online
Registration, completion date, quarterly progress and complaints on the state RERA website. See how to read a RERA project page.
10% limit before the agreement
Section 13. Remote buyers are often pushed to pay more on "offer" deadlines. See booking amount rules.
Refund or interest for delay
Section 18, at your state’s prescribed rate.
5-year defect liability
Section 14(3). Ask your attorney holder to inspect and report defects in writing.
Complain online
Most state RERA portals accept online complaints, and several hold online hearings. See the complaint process.
Power of Attorney: Get It Right
1
Use a specific POA
Name the project, unit and exact acts allowed (signing the agreement, registering, taking possession). Avoid a broad general power of attorney.
2
Execute it properly abroad
Sign before the Indian embassy or consulate, or before a local notary with an apostille if your country is a Hague Convention member. Check what your state’s sub-registrar accepts.
3
Stamp it in India in time
A POA executed abroad generally has to be stamped (adjudicated) under the state stamp law within three months of its arrival in India. Then register it if the state requires.
4
Choose the holder carefully
A trusted family member, ideally with a fixed expiry date. The holder can’t do anything the POA doesn’t say.
5
You can often register in person instead
If you visit India during the process, registering the agreement yourself avoids the POA for that step.
Payments, Loans and Tax
Home loan
Indian banks and housing finance companies lend to NRIs in rupees, within the same RBI loan-to-value limits. EMIs are paid from NRE, NRO or FCNR accounts or by remittance.
PAN
Get a PAN; it is needed for registration, TDS and the loan.
TDS when buying from a builder or resident
Same as a resident buyer: deduct 1% if the price is ₹50 lakh or more. See TDS on property purchase.
TDS when buying from another NRI
Much higher, on the seller’s capital gain, and you need a TAN. Get a chartered accountant involved before you pay.
GST and stamp duty
Same as for residents: GST on an under-construction flat, stamp duty and registration as per state law.
Rent later
Rent paid to an NRI is credited to an NRO account; the tenant deducts TDS on it.
Buying From Abroad: Extra Checks
☐ Get a video walk-through of the site, and compare it with the latest RERA progress report.
☐ Pay only to the account named in the agreement or demand letter; call the builder’s office on a number from its website before the first transfer.
☐ Never pay an agent’s personal account. Check the agent’s RERA registration.
☐ Get every document by email as well as by courier, and keep one folder of receipts, FIRCs and TDS challans.
☐ Ask your attorney holder to send dated photos at each construction stage.
☐ Before possession, have someone you trust inspect using our possession checklist.
Frequently Asked Questions
Can an NRI buy an under-construction flat in India?
Yes. NRIs and OCI cardholders can buy residential and commercial property in India, including under-construction flats, without RBI permission. They cannot buy agricultural land, plantations or farmhouses except by inheritance. RERA protections apply to them exactly as to resident buyers.
How should an NRI pay for property in India?
By inward remittance through banking channels or from NRE, NRO or FCNR(B) accounts in India. Cash, traveller's cheques and foreign currency notes are not allowed. Paying from foreign remittance or NRE/FCNR funds makes later repatriation of the sale proceeds easier, for up to two residential properties.
Can an NRI buy property in India without visiting?
Yes, through a specific power of attorney given to a trusted person in India. It is signed before the Indian embassy or consulate, or notarised and apostilled abroad, and then generally stamped in India within three months of its arrival under the state stamp law.
Does an NRI buyer have to deduct TDS?
Yes, the same as a resident buyer when buying from a builder or resident seller: 1% of the price if it is ₹50 lakh or more. If the seller is an NRI, TDS is much higher and is on the capital gain, so take a chartered accountant's help.
Can an NRI file a RERA complaint from abroad?
Yes. Most state RERA portals accept online complaints, and several Authorities hold online hearings. An NRI can also authorise a representative or lawyer in India.
Can NRIs get a home loan in India?
Yes. Indian banks and housing finance companies give home loans to NRIs in rupees, within RBI's loan-to-value limits. EMIs are paid from NRE, NRO or FCNR accounts or by remittance.
Official Sources
Foreign Exchange Management (Non-debt Instruments) Rules 2019 and RBI Master Direction on acquisition and transfer of immovable property in India by NRIs and OCIs. Real Estate (Regulation and Development) Act 2016, Sections 13, 14(3), 18 and 31. State stamp laws on instruments executed outside India (stamping within three months of receipt in India). Income-tax: TDS on purchase of immovable property (1% at ₹50 lakh or more from resident sellers); confirm current provisions with a chartered accountant.
Change Log
Nov 10, 2026: Page published.
Buying From Abroad? Get the Project Checked
Project Check (₹4,999) reviews the project’s RERA page, approvals, progress, complaints and the builder’s record, and sends you a written report personally reviewed before it goes out. Useful when you can’t visit.