The NRI Guide to Buying Property in Kolkata

Buying a home in Kolkata from abroad is very doable, but the rules around funding, paperwork and taxes trip up even seasoned investors. This guide covers what a Non-Resident Indian needs to know before buying, in plain terms. Treat the figures as indicative and confirm specifics with a qualified advisor.

What you can and cannot buy

As an NRI, you can freely buy residential and commercial property in India without any special permission. What you cannot buy is agricultural land, plantation property or a farmhouse, although you may inherit such land. For most buyers looking at flats and apartments, there is no restriction at all.

How the money must move

This is the part people get wrong. Payment must come through banking channels, never cash. You can fund the purchase from an NRE account, an NRO account, an FCNR account, or by direct inward remittance from abroad. Keep clean records of every transfer, as they matter later for repatriation.

Home loans are available to you

Indian banks and housing finance companies do lend to NRIs, usually with repayment through your NRE or NRO account. The documentation is heavier than for residents, passport and visa, overseas address proof, income documents and often a power of attorney, so start early. Our Legal and Loan Help team can guide you through it.

Power of attorney and paperwork

Since you may not be present for every step, a properly drafted power of attorney lets a trusted person act for you at registration. Get it drafted carefully and, if executed abroad, attested at the Indian consulate. Insist on RERA verification, a clean title and mutation checks exactly as a resident buyer would. Our guide to verifying RERA registration is a good place to start.

Tax and repatriation, in brief

• Rental income and capital gains from Indian property are taxable in India, and TDS rules apply, particularly when you later sell.
• When selling, the buyer is responsible for deducting TDS, and you can apply for a lower-deduction certificate if your actual liability is smaller.
• Repatriation of sale proceeds is allowed within prescribed limits, indicatively up to USD 1 million per financial year from NRO funds, with the right forms certified by a chartered accountant.

These rules change, so use this as a map, not the final word, and take professional FEMA and tax advice for your situation. When you are ready to look, browse our verified projects.