First Indian residential property
Funded from NRE balances — fully repatriable on later sale.
Property · Purchase
Buying Property as an NRI — FEMA Eligibility, Funding and POA Mechanics
What NRIs can and cannot buy, how to fund it from NRE vs NRO, and how to close remotely via Power of Attorney without compromising title or FEMA position.
What NRIs can and cannot buy, how to fund it from NRE vs NRO, and how to close remotely via Power of Attorney without compromising title or FEMA position.
Last reviewed: June 2026 · Updated for AY 2026-27
Why this matters
The stakes, plainly.
Wrong funding source = FEMA breach at the doorstep of a multi-crore asset. Wrong POA wording = title dispute years later.
Common situations
Where this usually comes up.
Buying with home loan from Indian bank
EMI from NRE/NRO; repatriation on sale follows funding source rules.
Joint purchase with resident family
FEMA, registration and tax all reshape — needs structuring before signing.
What goes wrong
Expensive mistakes we keep cleaning up.
Buying agricultural land
Prohibited for NRIs and OCIs under FEMA — purchase is void.
Funding from incorrect account
Repatriation status of the asset is set at funding — get it wrong and you can't take proceeds out.
Loose POA wording
Generic POAs invite registry rejection; sale-side POAs need notarisation in the foreign jurisdiction.
What we cover
The engagement, in writing.
- 01FEMA eligibility check for the specific property type
- 02Funding source decision — NRE vs NRO vs home loan
- 03POA drafting, notarisation and registration
- 04Title and encumbrance due diligence coordination
- 05Documentation pack for FEMA-clean closing
Reviewed by Regi Tom Antony, FCA, who leads NRI property sale services at Regi Tom Antony & Associates: 350+ NRI property transactions in the last 10 years, covering capital gains planning, lower TDS certificates, sale agreements and repatriation.
In depth
Due diligence before you pay
Check title through land-record searches going back several decades, encumbrance certificates, approved building plans, completion or occupancy certificates for ready property, and RERA registration for under-construction projects. On a resale, confirm property tax and society dues are paid and obtain the chain of earlier sale deeds. Most title disputes come from incomplete chains or unregistered transfers.
Stamp duty, registration and TDS as a buyer
Stamp duty and registration charges are set by each state and paid at registration. If you buy from a non-resident seller, you must deduct tax under Section 195 and need a TAN. If the seller is resident, TDS at 1% under Section 194-IA applies where the consideration is ₹50 lakh or more.
Using a power of attorney
If you cannot travel, a specific power of attorney executed abroad can be used to sign and register. It should name the property, the transaction and the attorney's powers, be executed before an Indian consulate or notarised and apostilled, and be presented for stamp duty in India within the period the state prescribes after it arrives.
Common questions
Answered, candidly.
- Can NRIs buy agricultural land?
- No. Residential and commercial only, under FEMA.
- Must I be physically present to register?
- No, a properly drafted and notarised POA enables remote registration.
- Does funding source affect future sale repatriation?
- Yes — NRE-funded property allows repatriation of sale proceeds (up to two residential properties).
Authored authority
The frameworks on this page are drawn from NRI Tax Blueprint 2025 — written by Regi Tom Antony, FCA, the practicing CA who advises on the same problems every week.
On the record
What clients say after the plan ships.
“Regi mapped out the RNOR window before I moved and saved us nearly two years of needless India tax on our US brokerage. The plan was written, dated, and exactly what I needed.”
Recovered USD 38k in pre-empted tax via RNOR sequencing.
Figures reflect aggregate RTA & Associates client engagements, 1997–2025; individual outcomes vary.
Anand R.
Tech founder, returning from California
USA → India
“We sold our Bengaluru flat from Dubai. The Section 197 lower-deduction certificate alone freed up ₹42 lakh of working capital while the sale closed. No other CA we spoke to even raised it.”
TDS reduced from 14.95% to 4.1% via Form 13.
Figures reflect aggregate RTA & Associates client engagements, 1997–2025; individual outcomes vary.
Farah K.
Investment banker, Dubai
UAE → India
“Clear, direct, on the record. Regi told us what would and wouldn't work — and exactly what the next filing was. No upsell, no fog.”
Priya & Mahesh S.
Doctors, NHS, planning return
UK → India
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- RTA & Associates· Chartered Accountants
- NRI Tax Blueprint· Authored playbooks
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