NRI Guide: Buying at Raheja Exotica from Abroad

A sea-facing home in Mumbai is one of the most common purchases we see from NRI families in the Gulf, the UK and North America, often as a base for visits and eventually for retirement. The rules are more straightforward than most people expect. Here is an overview. It is general information, not legal or tax advice, so run your specific case past a chartered accountant.

1. Can NRIs buy at Raheja Exotica?

Yes. Under FEMA, Non-Resident Indians and Overseas Citizens of India can buy residential property in India without RBI approval. There's no limit on the number of residential properties you can buy. (Agricultural land, plantations and farmhouses are restricted, but none of that applies here.)

2. How to pay

• Payments must come through normal banking channels: inward remittance, or from your NRE, NRO or FCNR account in India.
• You can't pay in foreign currency cash or traveller's cheques, or directly from a foreign account in foreign currency to the developer.
• Keep every remittance record (FIRC / bank advice). You'll need them when you sell and want to repatriate.

3. Home loans

Indian banks and housing finance companies lend to NRIs, typically with repayment from NRE/NRO accounts. Documentation usually includes passport and visa, overseas employment proof, salary slips, bank statements and credit history. Loan eligibility depends on your income and country of residence.

4. Signing without flying in: power of attorney

You can appoint a family member or trusted person in India through a specific power of attorney, signed before the Indian consulate/embassy (or notarised and apostilled, depending on the country) and then adjudicated for stamp duty in Maharashtra. Keep the POA specific to this purchase. Many steps, including site visits and document review, can also be done over video.

5. Taxes when you buy

The purchase costs are the same as for a resident: stamp duty, registration and, for under-construction homes, GST. See our all-in cost guide. If the price is ₹50 lakh or more, you as the buyer deduct 1% TDS from payments to a resident developer.

6. Renting it out

Rental income is taxable in India. Your tenant may need to deduct TDS on rent paid to an NRI landlord, and rent should be credited to your NRO account. You can then remit it abroad within the applicable limits.

7. Selling and repatriation

• When an NRI sells, the buyer deducts TDS at the applicable capital gains rate, which is higher than the 1% on resident sales. You can apply for a lower-deduction certificate if your actual gain is smaller.
• Sale proceeds can be repatriated for up to two residential properties, up to the amount originally paid in foreign exchange, subject to documentation. Balances beyond that follow the NRO repatriation limits (currently up to USD 1 million per financial year, with CA certification).