Who can buy and what can be bought
In general terms, Indian law has allowed NRIs and Persons of Indian Origin (OCI card holders are commonly treated alongside NRIs for this purpose) to buy residential and commercial property in India without a separate RBI approval, as long as payment follows the permitted routes. Agricultural land, plantation property and farmhouses have been treated differently and generally cannot be bought by NRIs, apart from by inheritance. An apartment is a residential property, so it falls on the permitted side.
Definitions of 'NRI', 'OCI' and 'foreign national' matter here, and the position of foreign passport holders without Indian origin is different. Check your own category before you proceed.
Read this first
This page is general education, not legal, tax or foreign-exchange advice. Regulations under FEMA, the Income Tax Act and RBI directions are revised from time to time. Confirm current rules with the RBI website, a chartered accountant and a property lawyer who understands NRI transactions.
Prestige Huyilalu is a pre-launch residential project, with a target possession of December 2030 and a starting price of ₹75 Lakhs onwards*. RERA details are awaited. Because the project is not yet formally launched, NRI buyers in particular should wait for approvals and the final agreement before sending money from abroad, since recovering funds across borders is slow if something goes wrong.
Paying for the property: NRE, NRO and other routes
Payments are generally expected to come through normal banking channels. The accounts and routes most commonly discussed are these.
| Route | What it is | Points to keep in mind |
|---|---|---|
| NRE account | Rupee account holding money remitted from abroad. | Funds are generally freely repatriable subject to rules. Commonly used for property purchases. |
| NRO account | Rupee account for income earned in India, such as rent or interest. | Repatriation is subject to limits and documentation. Interest is taxable in India. |
| FCNR account | Foreign currency deposit account. | Funds can be used for purchase; confirm terms with your bank. |
| Inward remittance | Money sent directly from abroad through a bank. | Keep the bank's foreign inward remittance certificate; it supports later repatriation claims. |
| Cash or third-party payment | Not generally permitted routes. | Avoid. Payments from unrelated accounts can cause compliance problems. |
Always keep records of the source of every payment. When you later sell, the paper trail is what decides how much you can send back abroad.
Power of attorney: useful but risky
Many NRIs cannot travel for each stage, so they authorise a trusted person in India to sign documents through a power of attorney (POA). It can work well, but it must be handled with care.
- Prefer a specific POA limited to this purchase over a general one that grants broad powers.
- Execute the POA at the Indian embassy or consulate, or have it notarised and apostilled or legalised as required, and then check how it must be stamped and registered in Karnataka.
- Choose someone you fully trust, such as a close relative, and define exactly what they may sign.
- Keep copies of everything signed, and cancel the POA in writing when the work is done.
- Ask your lawyer whether the developer accepts the POA format before you execute it.
Registration of the sale agreement and sale deed normally needs the buyer or an authorised representative to appear before the sub-registrar. See stamp duty and registration in Karnataka for the cost side.
Repatriation caveats
Repatriation means sending sale proceeds or rental income back to your country of residence. The following broad points are often raised, and all of them should be checked against the rules in force at the time.
- Repatriating sale proceeds of a residential property has historically been subject to conditions, including limits on the number of properties and on the amount, and the requirement that purchase funds came through proper channels.
- Income tax must be paid and certain certificates, commonly a chartered accountant's certificate, are required by banks for remittance.
- Rental income deposited in an NRO account has its own repatriation limits.
- A property bought with funds from an NRE account is typically treated more favourably than one bought from NRO funds, but confirm the current position.
Because rules change, do not rely on a friend's experience from several years ago. Ask your bank and CA what applies today.
Documents NRIs commonly keep ready
- Valid passport and visa or OCI card, plus Indian PAN card.
- Proof of overseas address and, if applicable, Indian address.
- NRE or NRO account details and bank statements.
- Employment or income proof from abroad, if a loan is sought.
- Power of attorney documents, if one is used, with proof of correct attestation.
- Foreign inward remittance certificates for each payment.
Requirements differ between banks, developers and the registration office, so ask for a written checklist at the start.
Home loans for NRIs
Many Indian banks and housing finance companies lend to NRIs against property in India, usually with their own rules on income documents, employment proof, loan amount and repayment through an NRE or NRO account. Repayment is generally from funds remitted from abroad or from rental and other Indian income. Documents and eligibility vary widely between lenders, so compare offers. Our home loan and EMI guide explains the construction-linked structure that applies to under-construction flats.
Taxes in general terms
NRIs are taxed in India on income arising in India. For a property purchase, the main tax points are as follows.
- GST applies on under-construction apartments for all buyers, regardless of residence. See GST on apartments.
- Stamp duty and registration apply equally to NRI and resident buyers.
- Rental income is taxable in India, and tax may be deducted at source at a higher rate when paid to an NRI. Your tenant or bank may need to deduct it.
- Capital gains tax applies on sale. The rate and the holding period for long-term treatment depend on the law at the time. Tax deducted at source on an NRI's sale is typically on a higher basis, and refunds are claimed through return filing.
- Double taxation may be relieved under a tax treaty between India and your country of residence; your tax adviser can confirm.
File Indian income tax returns whenever required, even if tax has already been deducted.
A practical sequence for NRI buyers
- Confirm your residential status and category (NRI, OCI) with a CA.
- Open or confirm an NRE or NRO account and understand the repatriation limits.
- Wait for the project's RERA number and verify it. See the RERA page.
- Ask for the cost sheet, payment plan and draft agreement. See payment plan.
- Have an independent lawyer check title and the draft agreement.
- Decide on a POA only if you cannot attend, and keep it limited.
- Pay only through banking channels and keep every receipt and remittance certificate.
For the investment angle, read our investment guide. To talk through project details, use the enquiry form; we are an independent information website, not the official Prestige site.
Time zones and distance make follow-up harder, so set up a single point of contact, whether a family member, your lawyer or the developer's NRI desk if one exists, and ask for key documents to be emailed with scanned copies for your records. Visiting India once, ideally before paying, to see the site and meet your advisers in person is often worth the trip.
