Mumbai remains one of the most popular cities for Non-Resident Indians (NRIs) investing in property, whether for a future home, a place for family or a rental income. The process is straightforward once you understand the rules. This guide covers what you can buy, how to pay and how to complete the purchase from abroad.
1. What NRIs can and cannot buy
Under India’s foreign exchange rules (FEMA), NRIs and Overseas Citizens of India (OCIs) can buy residential and commercial property in India without special permission. They generally cannot buy agricultural land, plantation property or farmhouses, except through inheritance. For most Mumbai buyers looking at flats or offices, this is not a restriction.
2. How to make payments
Payments must come through normal banking channels:
- Inward remittance from abroad, or
- Funds in your NRE, NRO or FCNR account in India.
Payments in foreign currency cash or traveller’s cheques are not allowed. Keep every bank record, because you will need them for taxes and for repatriating money later.
3. Documents you will need
- Valid passport (and OCI card, if applicable)
- PAN card, which is required for registering property and for tax
- Address proof abroad and in India
- Passport-size photographs
4. Use a Power of Attorney if you cannot travel
If you cannot be in Mumbai for registration, you can appoint a trusted person through a Power of Attorney (PoA). A PoA signed abroad is usually attested at the Indian embassy or consulate and then adjudicated (stamped) in India within the prescribed time. Keep the PoA specific to the property and transaction.
5. Home loans for NRIs
Many Indian banks offer home loans to NRIs. Repayment is made from your NRE or NRO account. Banks will ask for proof of income abroad, and loan terms may differ slightly from those for resident borrowers.
6. Check the project and the paperwork
Do the same checks a resident buyer would: clear title, building approvals, Occupancy Certificate, and MahaRERA registration for new projects. Read our document checklist for buying a flat in Mumbai for the full list.
7. Taxes and repatriation
Rental income from your Mumbai property is taxable in India. When you sell, capital gains tax applies, and the buyer deducts TDS at the rates applicable to NRIs. Sale proceeds can be repatriated within the limits set by the Reserve Bank of India, provided taxes are paid. Speak to a chartered accountant for advice on your situation.
Frequently asked questions
Can an NRI buy a flat in Mumbai without visiting India?
Yes. With video walkthroughs, digital document review and a Power of Attorney for registration, many NRIs complete their purchase without travelling.
Do NRIs need RBI permission to buy a flat?
No special permission is needed to buy residential or commercial property, as long as payments follow FEMA rules.
Can an NRI rent out a flat in Mumbai?
Yes. Rental income is credited to your NRO account and is taxable in India.
REALTZO NRI property services
REALTZO helps NRI clients buy, sell and rent out property in Mumbai with video walkthroughs, document checks, negotiation and registration support. Send us your requirement or message our NRI desk on WhatsApp at +91 93219 93664.
