India (IN)
India is the world's most populous nation and a fast-rising global power — a vibrant federal republic of extraordinary cultural, linguistic, and geographic diversity.
Buying Property in India
The full buying process, transaction costs, mortgage, and legal requirements.
Property purchase by foreign nationals in India is significantly restricted under FEMA (Foreign Exchange Management Act). Foreign nationals on regular visas (Employment, Business, Tourist) CANNOT purchase immovable property (residential or commercial) in India. Exceptions: OCI (Overseas Citizen of India) and PIO (Persons of Indian Origin) can purchase residential and commercial property but NOT agricultural land, farmland, or plantation property. NRIs (Non-Resident Indians — Indian nationals living abroad) can purchase property. Foreigners who are residents in India for an extended period and have Indian tax residency may purchase residential property (subject to conditions and RBI oversight). This guide covers OCI holders and any eligible categories.
Rent vs. Buy
For most expats (non-OCI), renting is the ONLY legal option. For OCI holders: buying vs renting depends on assignment duration and financial goals. If staying 3+ years: buying may make sense in growth cities (Bengaluru, Hyderabad, Pune). Property prices in Indian metros have appreciated significantly. However, selling and repatriating funds involves RBI approval and FEMA compliance. Rental yields in India are low (2–3%) relative to property prices — buying primarily makes sense for capital appreciation or personal use.
Buying Process — Step by Step
Verify eligibility
1–2 weeksConfirm you are OCI / PIO or meet RBI conditions for property purchase. Consult a property lawyer (advocate) and CA (Chartered Accountant).
Property search and due diligence
4–12 weeksSearch on MagicBricks, 99acres, Housing.com or through estate agents. Engage a reputable property lawyer to verify title documents, encumbrances, approval plans, and RERA registration.
Letter of Intent / MOU
1 weekSign a Memorandum of Understanding (MOU) or Agreement to Sell. Pay token amount (typically 1–2% of price). This is a preliminary agreement.
Due diligence legal verification
2–4 weeksLawyer verifies title chain (30 years), encumbrance certificate, RERA registration, approved building plan, occupancy certificate, property tax, and no-objection certificates.
Sale agreement
1–2 weeksFormal Sale Agreement signed. Typically 10–20% paid at this stage. Agreement registered at sub-registrar's office.
Home loan (if applicable)
2–4 weeksOCI holders eligible for home loans from Indian banks (SBI, HDFC, ICICI). Process similar to resident Indians but requires additional NRI/OCI documentation.
Sale deed execution
1 day (but prepare weeks in advance)Final Sale Deed signed in presence of sub-registrar. Balance payment made. Stamp duty paid. Deed registered — property ownership transfers.
Mutation of property
1–4 weeksApply for mutation at municipality (Nagarpalika) to update property tax records in buyer's name.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Stamp Duty | 3–8% of property value (varies significantly by state) | Maharashtra: 5% (men), 4% (women). Delhi: 4–6%. Karnataka: 5%. Women buyers get 1% discount in many states. |
| Registration Fee | 0.5–1% of property value (capped in most states) | Maharashtra: 1% (max ₹30,000). Karnataka: 1%. Delhi: 1%. |
| GST on Under-Construction Property | 5% (affordable housing); 5% (other) | GST only on under-construction properties. Ready-to-move (with occupation certificate) are GST-exempt. |
| Legal / Advocate Fees | 0.5–1% of property value | Separate from registration. Essential for due diligence. |
| Property Broker Commission | 1–2% of transaction value from buyer AND seller (varies) | Negotiate broker fee upfront. RERA-registered brokers recommended. |
| Home Loan Processing Fee | 0.25–1% of loan amount | One-time charge by lending bank. |
| Society Charges / NOC | ₹10,000–50,000 (varies) | Transfer fee charged by housing society. |
| Interiors / Renovation | Variable — budget ₹5,00,000–30,00,000 for typical 2BHK | Semi-finished or bare-shell properties common in India — significant interior cost needed. |
The Notary — Mandatory for All Purchases
India does not have the same notary system as civil law countries (France, Germany, Spain). The Sub-Registrar's office is the equivalent for property — sale deeds are mandatorily registered at the Sub-Registrar's office. A lawyer (advocate) drafts the documents. There is no notarial monopoly. Power of Attorney (POA) for OCI/NRI to authorise someone in India to transact on their behalf: notarise at Indian consulate abroad or at local notary in India.
Mortgage
OCI and NRI holders are eligible for home loans from Indian banks and HFCs (Housing Finance Companies). Most banks offer up to 75–80% LTV (Loan-to-Value). Loan tenures: up to 30 years. Interest rates: floating rate (RLLR/MCLR linked) typically 8.5–9.5% (2026). Fixed rates slightly higher.
20–25% of property value as down payment (banks typically finance 75–80%)
OCI/NRI home loans: same eligibility as resident Indians. Repayment via NRO account (from India income) or NRE account (from foreign income remittance). EMI deducted automatically. Income proof: foreign income and/or Indian income. Tax benefits on home loan interest (Section 24) and principal repayment (Section 80C) applicable for OCI/NRI if filing Indian tax return.
Land Registry
Property registration at the Sub-Registrar's office under the Registration Act 1908. Search encumbrances (mortgages, liens, disputes) via Encumbrance Certificate from Sub-Registrar. RERA (Real Estate Regulatory Authority) registration mandatory for all residential projects with 8+ units or 500+ sq m — verify at your state RERA website. Land record databases: most states have online land record portals (Dharitri in Odisha, Bhoomi in Karnataka, AnyRoR in Gujarat).
Taxes
TDS on property purchase: buyer deducts 1% TDS on sale consideration if price ≥ ₹50 lakh. OCI/NRI sellers: 20% TDS on long-term capital gains (LTCG) (indexation benefit available). Short-term capital gains (held < 2 years): taxed at applicable income slab rate. Stamp duty paid by buyer. Property tax: annual municipal tax paid by owner (typically ₹5,000–50,000/year for residential property). Capital gains: LTCG (held 24+ months) taxed at 20% with indexation, or 12.5% without indexation (Budget 2024 change). Reinvest capital gains within 2 years in another property or NHAI bonds (Section 54EC) to defer tax.
New Build vs. Existing Property
New/under-construction: subject to GST (5%), must be RERA registered. Developer delay risk — RERA provides legal recourse. Possession risk (many projects delayed). Better payment plans (construction-linked). Bare shell — high additional cost for interiors. Ready-to-move: no GST (if Occupancy Certificate obtained). What you see is what you get. Higher upfront cost. RERA still applies if within project registration.
Selling Property
OCI/NRI selling property in India: capital gains taxable in India. Repatriation of sale proceeds allowed after tax compliance — up to USD $1 million per year with CA certificate. Requires Form 15CA/15CB from CA. FEMA compliance essential. Agricultural land proceeds: cannot be repatriated abroad (agricultural land purchase itself is restricted for OCI/NRI).
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Property Buying
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