Can NRIs Buy Property in Gurgaon? Rules and Process

Under FEMA and the Reserve Bank of India's general permission, a Non-Resident Indian or Overseas Citizen of India can buy residential and commercial property in Gurgaon without any prior RBI approval and with no limit on how many properties they hold. In practice that covers almost everything a Gurgaon buyer wants: apartments and builder floors, independent villas in DLF and Sushant Lok, and residential plots in licensed colonies. The one firm restriction is agricultural land, farmhouses and plantation property, which an NRI cannot purchase and can only acquire by inheritance or as a gift from a resident relative.

All payment has to move through normal banking channels in Indian rupees, funded from an NRE, NRO or FCNR account or by inward remittance, so foreign currency cash is not allowed. NRIs can take a home loan from Indian banks and housing finance companies, commonly up to about 75 to 80 percent of the value for the price bands typical in Gurgaon, with EMIs serviced from an NRE or NRO account. A PAN card is mandatory, and both the buyer's and seller's PAN have to be quoted on the sale deed, a requirement that applies to any property transaction above 20 lakh and therefore to every Gurgaon purchase.

The transaction costs are the same for NRIs as for resident buyers. In urban Gurugram, Haryana stamp duty is 7 percent for a male buyer, 5 percent for a female buyer and 6 percent for joint male and female ownership, charged on the higher of the sale price or the sector circle (collector) rate, plus a registration fee capped at 50,000 rupees. An under-construction home also carries GST, currently 5 percent for standard housing and 1 percent for affordable housing, in both cases without input tax credit, while a ready-to-move home that already has its occupation or completion certificate carries no GST.

Two points catch NRIs out. First, TDS. If you buy from a resident you deduct 1 percent TDS once the price is 50 lakh or more, but if you buy from another NRI you must deduct TDS under Section 195 at the seller's capital-gains rate plus surcharge and cess, which is far higher and carries no minimum threshold, so confirm the seller's residential status in writing before paying. Second, verify any under-construction project on the HARERA Gurugram portal at haryanarera.gov.in before booking, where every registered Gurugram project carries a RERA-GRG registration number. If you cannot be in India to sign, give a registered special power of attorney, attested by the Indian embassy or consulate in your country and adjudicated in India, rather than a general one.