Documents Required for NRI to Buy Property in India | NRI’s Must Know

Documents Required for NRI to Buy Property in India

Foreign Exchange Management Act (FEMA) regulates NRIs’ purchasing and acquiring immovable properties in India. Let’s discuss what documents NRIs should consider.

The rules and regulations of property investment for NRI are different, and there are two main reasons for NRI Property Investment.

1. If the NRI want to settle in India after retirement.

2. Secure and safe investment of their money in India compared to their home country.

The transactions between a person resident in India and outside India or between two persons in India but in a foreign currency can do under the Reserve Bank of India (RBI) rule. No special permission is required for NRI to buy immovable property, and you can use foreign currency to pay.

As an NRI, you can only purchase certain properties in India. There shall be some documents required for NRI to buy property in India.

If an NRI wants to buy properties in India, they should be aware of certain provisions related to purchasing property under the Foreign Exchange Management Act (FEMA). There is no such limitation about the number of properties NRI can own in India.

Documents required for NRI to buy property in India

Person of India Origin (PIO) Card or Overseas Citizen of India (OCI) Card

They have to share their Indian passport to invest in property in India. If you are a foreign citizen but whose father or grandfather was an Indian citizen, then, in this case, you need a person of Indian origin (PIO) card to buy property in India.

In another case, if you are not a citizen of any of these countries (Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan), and can hold an Indian passport, then you will need the PIO card.

An overseas citizen of India (OCI) card is required if you’re not a citizen of India but were eligible to become a citizen of India before or after partition. You can get this card from the Indian embassy or consult in the country in which you live. Your parents’ birth certificate is required to prove that you are an OCI or PIO, and you must produce that.

PAN Card

PAN (permanent account number) Card is a mandatory document to buy property in India because they must file income tax returns if they have rented the property.

Suppose the property is sold later, the capital gains which arise from the sales will consider capital gains tax, and the capital gains will be summed up in the total income while it is taxed.

Registered Power of Attorney

Supposes you are an NRI and don’t visit India frequently. In that case, giving a power of attorney to someone with whom you are buying a property will let you get the easy process of the sale, registration, possession, and other procedure of the property.

A special power of attorney, registered and notarised, is necessary, not a general power of attorney, is required to buy the property.

How to Execute a Power of Attorney?

A power of attorney authorises other persons residing in India to do transactions on your behalf.

You must sign the POA in the presence of a consulate officer or notary in your country of residence, and the officers must attest these documents.

Proof of Address

NRI must submit the address proof of your current residence, like any utility bill, and the Indian Embassy in your country of residence should attest to it. It is also a mandatory document required for NRI to buy property in India.

Passport Size Photograph

NRI must submit passport-size photographs for the sale deed registration.

What Type of Property Can an NRI Buy in India?

NRI have restriction on buying agricultural land, plantation property or a farmhouse. There is no special permission required from RBI to invest in property in India. The income tax laws allow an NRI to own residential and commercial properties.

NRI must obtain specific permission from RBI to purchase a farmhouse or plantation. But they must submit the documents required for NRI to buy property in India.

Documents NRIs Need While Applying for a Home Loan to Buy Property

If you are a salaried NRI and want to apply for a home loan, you will need the following documents:

  • Address proof of the applicant and co-applicant
  • Two passport-size photographs
  • Address proof of NRI (utility bills or driving license)
  • Past 6-month bank transaction statement of NRE/NRO account in India
  • Past 6-months bank statement from your account held in the country in which you work
  • Salary slip of your employer
  • If you have a loan, then you have to submit a copy of the loan sanction letter received in India and abroad
  • Self-declared residential status
  • Power of Attorney


There is no restriction on NRI to buy any commercial or residential property in India except any agricultural land, farmhouse, and plantation property. In the above context, we discussed documents required for NRIs to buy property in India. If these properties are gifted to them or inherited from an ancestor, then only they can own them.

To pay, NRI must use normal banking or a Non-resident Rupee Account (NRE) or Non-resident Ordinary Account (NRO). NRI can give Power of Attorney (POA) to your friends or relatives to do the process in India.


Can NRI own property in India?

Yes, NRIs can also own and buy property in India. But there are some provisional to be followed.

Can an NRI buy property in India without a physical presence?

Yes, NRIs need not be physically present in India, and they can also provide a power attorney when buying the property.

Is an Aadhaar card mandatory for property registration for NRI?

It is not mandatory to have an Aadhaar card for NRI to buy property in India. But should give other ID proof.

Do NRIs pay property tax in India?

Yes, they are also required to pay property tax in India since they are investing in Indian assets.