How can NRIS invest in property in India while living Abroad

June 27, 2018

Are you an NRI looking into investing in property back home? Right now might be the best time to do that!

Stay with me on this one. Here is a fact:

With the downfall of the rupee, there may be no time better than now to invest in Indian property.

The Reserve Bank of India (RBI) goes easy on NRIs and offers you convenient regulations so you can buy property here in your native homeland. You don’t even have to take prior permission from the concerned authorities. The Foreign Exchange Management Act (FEMA) governs the rules for such property transactions.

You, as an NRI, or as a Person of Indian Origin (PIO) can own and buy as many commercial and residential properties as you wish. There is no limiting number on that. However, you cannot buy a farm house, plantation property or agricultural land. You can, however, own such property if you’ve inherited it or if it has been gifted to you.


Before you buy the property, get the papers examined and verified by a lawyer. Make it a point to get a No Dues Certificate from the seller so that you’re certain there are no pending bills for you to meddle with. Once you’re certain that the property papers are clean, it becomes easier for you to get a loan to fund your purchase. If you’re eligible, the lenders will readily provide you a loan.

*Note that your profession and educational qualification play a major role in your eligibility for a loan. For instance, only graduate NRIs are eligible for home loans.  

As per RBI’s regulations, you can avail 80% of the investment funds from a financial institute, the rest of the 20% is mandatory to come from your personal resources.

Another option which is notably suggestable for NRIs is to avail loans from overseas for their investments here in India.

Power of Attorney

It is not uncommon for NRIs to hand over their property’s Power of Attorney to a resident Indian. It helps in uncomplicating things a bit – it becomes easier for you to rent your property, put it under construction, or even to sell it.

It becomes very convenient for you to sell your property when the PoA is in the name of a resident Indian for this person can act on your behalf and complete all the formalities without you being present.

All you have to do is to get the Power of Attorney document prepared from a lawyer you trust.

Selling of Property by NRIs

As an NRI, you can sell your commercial or residential property to anyone you want (resident Indian or not), as per RBI’s regulations. However, if the property is an agricultural land, or farm house, or plantation, which you had inherited or you were gifted with, the case would differ. In such cases, you have to find a resident Indian buyer for your property. It is possible for you to gift such property to another Non-Resident Indian.


This is what you came looking for, didn’t you? Don’t worry, I’ve got you!

Property investment is one of the best tax-saving tool for both resident and non-resident Indians. An NRI avails all the tax benefits that a resident does. To add to that, NRIs get an added benefit if they purchase a residential property on a loan. You can claim a deduction on the home loan interest. This deduction has no upper limit, unlike the 1.5 lakh limit that exists for resident Indians.

There are plenty of benefits for NRIs on making property investments in India. The first best time to invest for you all was the immediate post-demonetization period, and the second best time is now. I wish you all the best with your investment ventures everyone!

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