NRI Property Guide: Buy Property in Gurgaon from Abroad

Power of Attorney (PoA) is not legally mandatory if the NRI can travel to India for registration. However, it is strongly recommended and practically essential for most NRIs, as property registration, agreement execution, and possession handover often require in-person presence. A specific PoA (not general) registered with the Indian consulate allows a trusted representative to execute documents on your behalf.

The buyer must deduct TDS at 20% (plus applicable surcharge and cess) on the capital gains when purchasing property from an NRI seller. For long-term capital gains (property held over 24 months), the rate is 20% with indexation benefits. For short-term gains, the rate is as per the NRI's income tax slab. The buyer must obtain a TDS certificate and the NRI can claim credit while filing returns.

NRIs can avail home loans from most major Indian banks and NBFCs including SBI, HDFC, ICICI, and Axis Bank. The NRI must have an NRO or NRE account, a valid Indian PAN card, and income proof (salary slips, bank statements from the foreign bank). The loan is disbursed only to an NRO account. Most banks fund up to 80% of the property value. The loan must be repaid in INR through the NRO account.

Major banks offering NRI home loans include State Bank of India (SBI), HDFC Ltd, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Bank of Baroda, and Punjab National Bank. Each bank has specific eligibility criteria regarding minimum income abroad, country of residence, and employment type. SBI and HDFC typically offer the most NRI-friendly terms with competitive interest rates.

Key documents include: Valid Indian Passport or OCI card, PAN card (mandatory for property transactions), Power of Attorney (if not registering in person), NRO/NRE bank account statements, address proof (both Indian and overseas), income proof (salary slips, tax returns of the foreign country), and passport-size photographs. For registration: sale deed, encumbrance certificate, property tax receipts, and society NOC.

Yes. An NRI can sell inherited residential or commercial property in India. The sale proceeds can be repatriated up to USD 1 million per financial year under the Liberalised Remittance Scheme, subject to RBI guidelines. If the inherited property is agricultural land or a farmhouse (which NRIs cannot buy but can inherit), the NRI can sell it only to a resident Indian. TDS at 20% + surcharge applies on sale.

Under FEMA (Foreign Exchange Management Act, 1999), NRIs and OCIs can purchase any residential or commercial property in India without prior RBI permission. They cannot buy agricultural land, plantations, or farmhouses. Sale proceeds can be repatriated up to the amount originally brought in through banking channels (for purchased properties) or up to USD 1 million per year (for inherited properties). All transactions must be routed through NRO/NRE accounts and comply with FEMA declaration requirements.