Buying a home in India while living in Dubai, Toronto or Singapore is very doable - thousands of NRIs do it every year - but the process has a few extra steps compared with buying as a resident. This guide walks through them in order, so you know what to prepare and when.

This article is general information, not legal or tax advice. Rules change; please confirm the current position with a qualified chartered accountant or lawyer before acting.

Step 1: Confirm what you are allowed to buy

Under FEMA, NRIs (Indian citizens living abroad) and OCI cardholders can buy residential and commercial property in India without any limit on the number of properties. What they cannot buy is agricultural land, plantation property or a farmhouse - although these can be held if inherited. Foreign citizens who are not OCIs face much stricter rules.

If you are unsure whether you count as an NRI under FEMA (which is a different test from your tax residency), read our NRI Investment Guide first.

Step 2: Get your banking and PAN in order

  • NRE account - for money earned abroad. Freely repatriable; interest tax-free in India.
  • NRO account - for income earned in India such as rent. Repatriation is subject to limits and paperwork.
  • PAN - you need a PAN to buy property (it must be quoted for transactions above ₹10 lakh) and to file Indian tax returns. Make sure your PAN details match your passport.

The price must be paid in rupees through banking channels - by inward remittance or from your NRE, FCNR(B) or NRO account, or via a home loan. Never pay in foreign currency cash or travellers' cheques, and avoid payments from third parties' accounts.

Step 3: Define your goal and full budget

Are you buying a home for your family, for retirement, for rental income or for long-term appreciation? The answer changes which city, which micro-market and which kind of project makes sense. When you set your budget, include:

  • Stamp duty and registration fees (set by each state)
  • GST on under-construction property (none on ready property sold after the completion certificate)
  • Maintenance deposits, parking and club charges
  • Legal fees, loan processing fees and interiors

Step 4: Shortlist and verify

Compare a handful of projects side by side: developer track record, location, configuration, carpet area, price, payment plan and possession date. Then verify:

  • The RERA registration on the state RERA website, including the registered completion date and quarterly progress updates.
  • Approvals and title (have a lawyer check, especially for resale or plotted developments).
  • Any complaints or orders against the project or developer on the RERA portal.

Step 5: Visit - or take a virtual tour

If you are travelling to India, plan site visits for the end of your shortlist. If not, a live video walkthrough of the sample flat, the construction site and the neighbourhood is the next best thing. Ask about the view, the direction the flat faces, noise and the distance to schools, offices and the metro.

Step 6: Line up your home loan (if you need one)

Get an in-principle sanction before booking. RBI caps the loan-to-value at 90% for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. Read our NRI home loans guide for documents and eligibility.

Step 7: Book and sign the agreement for sale

Pay the booking amount from your NRE/NRO account and collect a receipt and allotment letter. Under RERA, a developer cannot take more than 10% of the cost before executing a registered agreement for sale. Have a lawyer review the agreement - especially clauses on possession date, delay compensation, specifications, carpet area and cancellation.

Step 8: Arrange a Power of Attorney if you cannot be there

If you will not be in India for signing and registration, appoint a trusted relative through a specific Power of Attorney. Execute it abroad (notarised and apostilled, or attested at the Indian Embassy/Consulate) and have it stamped in India within three months of it arriving. Our POA guide explains the process.

Step 9: Pay instalments and keep the paper trail

For under-construction homes you will pay in stages. Pay every instalment through permitted channels and keep bank statements and Foreign Inward Remittance Certificates (FIRCs) or bank advices. These documents prove the source of funds when you eventually sell and want to repatriate the proceeds.

Step 10: Registration, possession and after

Pay stamp duty and register the sale or conveyance deed at the sub-registrar's office, in person or through your POA holder. At possession, inspect the flat for snags, collect all documents and keys, and apply for mutation, utility connections and society membership in your name. If you plan to rent it out, remember that your tenant must deduct TDS on rent paid to you as an NRI.

A quick checklist

  1. Confirm eligibility under FEMA
  2. NRE/NRO accounts and PAN ready
  3. Goal and all-in budget fixed
  4. Shortlist verified on the RERA portal
  5. Site visit or virtual tour done
  6. Loan sanctioned (if needed)
  7. Agreement for sale reviewed by a lawyer
  8. POA executed, stamped and registered (if needed)
  9. Payment records filed safely
  10. Registration, possession and mutation completed

Want help with any of these steps? Talk to an NRIVEST advisor - we schedule calls in your time zone.