How NRIs Can Buy Property in India: Step-by-Step Guide

For many Non-Resident Indians (NRIs), owning a home in India goes beyond financial returns — it’s about staying connected to their roots, providing security for loved ones, and planning for a future return.

With Chennai emerging as one of India’s most stable and investor-friendly property markets, NRIs are increasingly drawn to its mix of premium redevelopment projects, consistent rental demand, and long-term appreciation potential.

At RAMS Real Estates, we have extensive experience working with NRI clients and understand their specific challenges. This guide highlights everything an NRI needs to know before investing in Chennai’s real estate.

Who is Classified as an NRI?

As per the Foreign Exchange Management Act (FEMA), an NRI is an Indian citizen residing outside India for employment, business, or any other purpose that indicates an indefinite stay abroad.

This category also includes:

• Persons of Indian Origin (PIOs)
• Overseas Citizens of India (OCIs)

What Properties Can NRIs Buy?

NRIs enjoy property ownership rights almost equal to resident Indians, with some exceptions.

• Permitted: Residential and commercial real estate (including multiple units).
• Restricted: Agricultural land, farmhouses, or plantation properties (unless inherited or received as a gift).

Documents Required for an NRI Property Purchase

To make the buying process smooth, the following documents are essential:

• Valid Indian passport, OCI, or PIO card.
• PAN (Permanent Account Number) card
• Proof of overseas residence
• Passport-size photographs
• Power of Attorney (PoA), if the buyer cannot be present in India during the transaction

Payment Modes & Loan Options

Payment Rules:

• All payments must be made in Indian Rupees (INR) via approved banking channels.
• Funds can be remitted through NRE, NRO, or FCNR accounts.

Home Loans:

• Indian banks provide housing loans to NRIs subject to eligibility checks.
• Loan repayments can be made through NRE/NRO accounts or inward remittances.

Legal & RERA Compliance

Due diligence is critical when purchasing property from abroad. Key steps include:

• RERA Verification: Ensure the project is registered with TNRERA (Tamil Nadu Real Estate Regulatory Authority).
• Title Check: Confirm ownership and approvals with a legal professional
• Clear Agreements: Verify that terms regarding payments, possession dates, and specifications are documented.

At RAMS Real Estates, all projects are fully RERA-registered, with transparent documentation and processes.

Tax Implications for NRIs

• Rental Income: Taxable in India, with deductions available for property taxes and maintenance expenses.
• Capital Gains:
  • Long-term (held >2 years): 20% tax with indexation benefits.
  • Short-term: Taxed as per applicable income slab.
• DTAA (Double Tax Avoidance Agreement): Prevents double taxation in India and the country of residence.

Why Chennai is a Preferred Market for NRIs

• Steady Appreciation: Prime locations such as T. Nagar, Adyar, and Chetpet continue to deliver strong long-term growth.
• High Rental Demand: IT corridors and business hubs generate reliable rental income.
• Redevelopment Opportunities: Central Chennai’s land scarcity creates lucrative redevelopment prospects.
• Emotional Value: Many NRIs prefer owning a home in Chennai for family visits, retirement, or legacy purposes

How RAMS Real Estates Supports NRIs

Our dedicated NRI Desk provides end-to-end assistance, including:

• Personalized property recommendations based on your goals.
• Virtual tours and remote walkthroughs.
• Complete legal and documentation support.
• Assistance with NRI banking and home loan arrangements.
• Post-purchase services, including property management..

Smart Tips for NRIs Before Buying

• Partner with a reputed, experienced developer.
• Match the location to your purpose — investment, rental, or self-use.
• Review contracts thoroughly before signing.
• Consider exchange rate fluctuations while planning.
• Stay informed through regular project updates from your developer.

Conclusion

For NRIs, purchasing property in Chennai is both an emotional milestone and a strategic investment. By choosing a reliable, RERA-compliant developer like RAMS Real Estates, buyers can enjoy a transparent, stress-free, and rewarding home-buying experience.