Buying property in Gurugram from Dubai, London or New York is entirely possible, and for many NRIs it has become routine. The challenge is not access; it is knowing the rules on payment, tax and repatriation before you commit. This guide walks through the essentials, from what FEMA permits to how a purchase can be completed without flying in.
Key Takeaways
- NRIs and OCIs can buy residential and commercial property in India, but not agricultural land, farmhouses or plantation property.
- Payment must go through banking channels: inward remittance or NRE, NRO or FCNR(B) accounts. Cash is not allowed.
- Sale proceeds from NRO funds can be sent abroad up to USD 1 million per financial year, with a CA certificate. Proceeds of up to two residential properties bought with foreign funds can be repatriated.
- Tax rules changed in recent years, including the shift to the new Income-tax Act. Confirm current rates with a chartered accountant before you transact.
Who counts as an NRI, and what can you buy?
A Non-Resident Indian (NRI) is an Indian citizen who lives outside India, and an Overseas Citizen of India (OCI) is a person of Indian origin holding an OCI card. Under the Foreign Exchange Management Act (FEMA), both categories can generally buy residential and commercial property in India without prior approval from the Reserve Bank of India.
There is one important exclusion: NRIs and OCIs cannot purchase agricultural land, farmhouses or plantation property, although they may inherit them. For most buyers in Gurugram, that limitation rarely matters, since the market is dominated by apartments, retail, offices and plotted developments within urban limits. If you are unsure whether a particular plot or farm-style project qualifies, ask for the land-use classification in writing before paying anything.
How to pay: the banking rules under FEMA
Every rupee of an NRI purchase must travel through the banking system. The permitted routes are:
- Inward remittance from abroad through normal banking channels.
- NRE account (Non-Resident External), funded with foreign earnings and fully repatriable.
- NRO account (Non-Resident Ordinary), holding income earned in India such as rent or dividends. Repatriation is limited and tax-linked.
- FCNR(B) account, a foreign-currency deposit that is also repatriable.
Cash, travellers' cheques and foreign currency notes are not acceptable. Indian banks also offer home loans to NRIs, with loan amounts, interest rates and eligibility depending on the bank, your income and the property. Arrange pre-approval early, because it strengthens your negotiating position with developers.
Money you bring from abroad and hold in an NRE account is easier to send back when you sell. Money paid from an NRO account follows the tighter NRO repatriation rules. Decide your funding route before the first payment, not after.
Costs at purchase: GST, stamp duty, registration and TDS
Beyond the base price, expect the following:
- GST: applies on under-construction property at the prevailing rate. For most non-affordable residential projects it has been 5% without input tax credit, while ready-to-move homes with an occupancy certificate generally do not attract GST. Verify the current rate for your unit type.
- Stamp duty and registration: levied by the state and calculated on the higher of agreement value or the collector rate. Haryana's rates vary by buyer category and are revised periodically, so confirm them at the time of registration.
- TDS at 1%: when the seller (including a developer) is a resident and the consideration is ₹50 lakh or more, the buyer deducts TDS and deposits it with the tax department. Your developer or CA will guide the process.
- Other charges: parking, club membership, maintenance deposits and preferential location charges.
Taxes while you own the property
Rental income earned in India is taxable in India, and tenants typically deduct tax at source before paying rent to an NRI, often at a high rate unless a lower-deduction certificate is obtained. You may also owe property tax and pay municipal charges. If your country of residence has a Double Taxation Avoidance Agreement (DTAA) with India, you may be able to claim credit for Indian tax paid, so keep clean records of every payment and TDS certificate.
Taxes and repatriation when you sell
When an NRI sells property, capital gains tax applies. Gains on property held for more than 24 months are long-term and, for transfers after 23 July 2024, are generally taxed at 12.5% without indexation. Gains on shorter holdings are short-term and taxed at slab rates. The buyer must deduct TDS on the transaction, which for NRI sellers is often calculated on the full sale value unless a lower-deduction certificate is obtained in advance. India's tax provisions were reorganised under the Income-tax Act, 2025, which took effect from April 2026, so ask your CA to confirm the current sections and rates.
Repatriation has its own limits:
- Sale proceeds from a property bought with foreign funds can be repatriated, for up to two residential properties.
- Amounts held in an NRO account can be remitted abroad up to USD 1 million per financial year, which covers sale proceeds, rent and other Indian income combined.
- Banks usually require a CA certificate (Forms 15CA and 15CB) and documents proving tax has been paid.
Buying remotely, step by step
- Clarify your goal. Are you buying to live, to rent or to hold for appreciation? This shapes the corridor and property type.
- Shortlist through virtual tours. Ask for live video walkthroughs, drone footage, floor-plan reviews and comparisons across two or three projects.
- Verify the basics. Check RERA registration, title, approvals and the developer's delivery record.
- Prepare your banking. Have your PAN, an NRE or NRO account and, if needed, a home-loan sanction ready.
- Book by bank transfer. Pay the booking amount only from your own account, and obtain a written receipt.
- Review the agreement. Have a lawyer read the builder-buyer agreement, including payment schedule, delay penalties and exit terms.
- Sign and register. This can be done in person, or through a Power of Attorney holder in India.
- Plan for possession. Arrange inspection, interiors and, if you intend to rent, a tenant and property manager.
Using a Power of Attorney safely
A Power of Attorney lets a trusted person act for you in India, which is why many NRIs never need to travel for a purchase. Keep the authority narrow and specific: name the property, list the acts permitted and set an expiry. If it is signed abroad, it generally needs notarisation and apostille or embassy attestation, followed by stamping in India as required. Choose the holder carefully, since they will be able to sign documents in your name.
Common mistakes NRIs make
- Paying through the wrong account and losing repatriation flexibility.
- Assuming a developer's brochure equals the RERA-registered plan.
- Ignoring TDS on rent and on eventual sale, which can tie up cash for months.
- Broad, open-ended Power of Attorney documents.
- Buying on currency optimism alone, without considering that rupee movements can shift returns in your home currency.
Choosing the right property as an NRI
NRIs tend to favour projects with strong brand names, near-term possession and professional facility management. Residential yields in premium projects are typically modest, so returns depend heavily on appreciation, while commercial assets such as retail and offices may offer higher rental income with different risks. You can browse both on our residential and commercial project pages, and for a market view, read our analysis of Dwarka Expressway and SPR.
Frequently asked questions
The bottom line
Investing in Gurugram from abroad is straightforward once the payment route, tax treatment and repatriation plan are settled up front. The mistakes that hurt NRIs are almost always procedural, and almost all are avoidable. Our NRI desk supports video walkthroughs, documentation coordination and banking guidance, so you can move forward with clarity.
This article is for general information and is not legal, tax or investment advice. Rules, rates and thresholds change; verify them with a chartered accountant, lawyer or your bank before acting. Sources include RBI and FEMA guidance as summarised by banks and advisory firms, and Union Budget 2024 capital gains changes.
This article is for general informational purposes only and does not constitute financial, legal or tax advice. Property market data, prices and regulations change; please verify current figures with official sources and consult a qualified professional before making investment decisions.
