Buying Property in India: A Buyer’s Guide

Before you buy in India

Your citizenship, residence status and the land’s classification affect whether you can buy in India. Check these before paying a deposit. The local currency is the Indian rupee (INR).

Most supplied research sections are dated 13 October 2026 and have not been professionally reviewed. This guide is information, not financial or legal advice.

Who can own property

Under the Foreign Exchange Management Act (FEMA) and RBI rules, Non-Resident Indians (NRIs) and Overseas Citizens of India (OCI cardholders) may buy residential and commercial property. You cannot buy agricultural land, plantation property or farmhouses under these permissions, although you can inherit them.

If you are a foreign national who is not of Indian origin and lives outside India, you generally cannot buy. Exceptions include inheritance and leases of up to five years. Citizens of some neighbouring countries need prior permission even when resident in India; check the current list.

For an NRI or OCI purchase, payment must use normal banking channels: inward remittance or funds in an NRE, FCNR(B) or NRO account. Traveller’s cheques and foreign currency notes are not allowed.

Ask a lawyer to confirm your FEMA residence status, permitted payment route and options for sending eventual sale proceeds abroad.

Ownership is not residency

Buying property gives you no right to live in India. India has no residence-by-property-investment programme.

Indian citizens, including NRIs, need no visa. People of Indian origin with foreign citizenship can apply for an OCI card, which allows multiple-entry, lifelong visits. Other foreign nationals need a suitable visa; property rights remain subject to FEMA residence rules.

Checks before paying a deposit

Use a property lawyer to examine:

• Title: trace ownership through registered deeds over many years, often 30. Obtain an Encumbrance Certificate from the Sub-Registrar for mortgages and other registered charges.
• Land records: confirm classification and records showing the seller’s name. Kerala checks include village office records and the thandaper/possession certificate. Paddy land and wetland may have additional restrictions.
• Project registration: projects above a certain size require state Real Estate Regulatory Authority (RERA) registration. Check the number on the state website before paying. RERA also limits payments before an agreement for sale.
• Approvals: examine the building permit, approved plan, occupancy certificate and relevant association/no-objection letters for flats.

Pay by bank transfer from the correct account type and register the sale deed.

Taxes and your buying budget

Stamp duty and registration fees vary by state. Duty is usually based on the higher of the agreed price and government fair value. For Kerala, consult the Registration Department’s current ready reckoner.

For a resident seller, no buyer tax deduction at source (TDS) is needed if both the price and stamp-duty value are below ₹50 lakh. Otherwise, section 194-IA requires 1% TDS; agricultural land is excluded. An NRI seller falls under section 195, usually involving a higher deduction. Get tax advice before payment.

GST may apply to developer sales of under-construction property; it generally does not apply to completed resale homes. Budget for legal fees, title searches, brokerage and any loan fees.

The supplied capital-gains research is incomplete. Get advice on your sale rather than relying on a headline rate.

Letting your property

Use a written tenancy agreement and register it where state law requires. The Model Tenancy Act, 2021 is a template; its application depends on state adoption.

Rental income is taxable in India. If you are an NRI landlord, your tenant may need to deduct tax before paying rent.

Allow for local property tax, maintenance charges, repairs, insurance, management fees, vacancies and late payments. PremiumProperty4U does not yet publish typical India rental yields. Use your own estimates in the calculator.

Commercial property and hotels

NRI and OCI permissions also cover shops, offices and hotel units, subject to the land restrictions above.

Foreign companies invest through the FDI policy rather than direct property purchases. Construction-development and hotels and tourism are generally permitted; trading land and buildings for profit and building farmhouses are prohibited sectors. Check the current policy conditions.

For hotels and resorts, check applicable state tourism, fire safety, pollution control and local licences.

Professional help and inheritance

Involve a State Bar Council-enrolled advocate and an ICAI-member chartered accountant. Agents dealing in RERA-registered projects must hold state RERA registration. A licensed surveyor can check boundaries; a structural engineer can assess older buildings.

Inheritance rules depend on religion and domicile. NRIs and OCI cardholders can inherit any property, but inherited agricultural land, plantations and farmhouses can usually be transferred only to Indian residents. Discuss a witnessed will, registration and any probate requirement with your lawyer.

What we do not know yet

• Your eligibility and property-specific title, classification and approvals are not established.
• Applicable state fees, GST treatment and your total transaction costs are not calculated.
• Complete capital-gains guidance is not available in the supplied research.
• Typical rental yields and market-average prices are unavailable; listing asking prices are not market averages.
• PremiumProperty4U has not yet verified professionals in India. You can register interest through the due-diligence request form.