Property Rules for NRIs: What You Must Know Before Buying in India

When it comes to buying property in India, NRI property rules, the legal and tax guidelines that govern how Non-Resident Indians can own real estate in India. Also known as NRI real estate regulations, these rules determine everything from where you can buy to how much tax you’ll pay—and whether staying too long in India could change your entire financial status. Many NRIs assume they can buy any property freely, but that’s not true. You can buy residential or commercial property without permission, but you can’t buy farmland, plantation land, or a farmhouse. This isn’t just a formality—it’s a hard legal boundary enforced by the Reserve Bank of India and the Foreign Exchange Management Act (FEMA).

Your NRI tax status, whether you’re classified as a resident or non-resident for income tax purposes in India. Also known as NRI residential status, it directly affects your property ownership benefits. If you stay in India for more than 182 days in a financial year, you’re no longer considered an NRI for tax purposes. That means you lose certain tax exemptions on rental income, capital gains, and even how you fund your property purchase. A lot of people don’t realize this until they get hit with a big tax bill. And if you’re buying property with money from your NRE or NRO account, you need to track the source carefully—RBI has strict rules about repatriating sale proceeds.

There’s also the matter of who can inherit your property. If you pass away, your Indian property can be passed to any legal heir, even if they’re not an NRI. But if you’re gifting it while alive, the recipient must be a close relative under Indian law. And don’t forget registration—property must be registered in your name with the sub-registrar, and stamp duty varies by state. Some states like Maharashtra and Karnataka charge higher stamp duty for NRIs compared to residents. This isn’t discrimination—it’s policy. You need to plan for it.

What you’ll find below are real, practical posts that break down exactly how these rules play out in everyday situations. From how long you can stay in India without losing your NRI status, to how GST applies when you rent out your property, to whether you can use a home loan as an NRI and what documents you need—these aren’t theoretical guidelines. They’re the things that trip people up when they’re trying to build wealth back home. We’ve collected the most common questions, the most overlooked mistakes, and the clearest answers from people who’ve been through it. No fluff. No jargon. Just what you need to know before you sign anything.