The Complete Guide for NRIs Investing in Indian Real Estate
Rahul Verma
February 18, 2026
The India Advantage
With a booming economy, depreciating rupee, and highly transparent regulations like RERA, India has become an incredibly attractive real estate investment destination for Non-Resident Indians (NRIs).
FEMA Guidelines
Under the Foreign Exchange Management Act (FEMA), an NRI or a Person of Indian Origin (PIO) can purchase any residential or commercial property in India. However, they cannot purchase agricultural land, plantation property, or a farmhouse.
Funding the Purchase
Payments must be made out of funds received in India through normal banking channels or funds held in any non-resident account (NRE/NRO/FCNR). Home loans are easily available for NRIs from Indian banks.
Taxation Rules
Rental income earned in India is subject to TDS at 30%. However, NRIs can claim deductions for municipal taxes and a 30% standard deduction. Capital gains tax applies upon the sale of the property, with long-term capital gains (if held for over 2 years) taxed at 20% with indexation benefits.
Managing Properties Remotely
The biggest hurdle for NRIs is property management. A to I Infra provides end-to-end services for our NRI clients, from identifying the right property and legal verification to interior furnishing and tenant management.