NRI GUIDE TO BUYING
PROPERTY IN MUMBAIFEMA Rules, Tax, Repatriation, Power of Attorney & the Complete Step-by-Step Process
A complete NRI guide to buying property in Mumbai - FEMA rules, NRE vs NRO, tax and TDS, repatriation, Power of Attorney and the step-by-step process, with common mistakes to avoid.
📌 Quick take: NRIs & OCIs can buy residential, commercial and industrial property in Mumbai under FEMA — no RBI approval, no cap (except agricultural/farmhouse). Pay via NRE/NRO, understand tax & TDS and repatriation (USD 1M/yr), and buy remotely via POA. Verify RERA and consult a CA/advocate.
Who Qualifies as an NRI for Property Purchase?
Under Indian law, you are an NRI (Non-Resident Indian) if you are an Indian citizen who has resided outside India for 182 days or more during the previous financial year. OCI (Overseas Citizen of India) cardholders have the same property rights as NRIs — except they cannot buy agricultural land or farmhouses.
Both NRIs and OCIs can buy residential and commercial property in India — including warehouses, office spaces and industrial units — without any prior approval from the RBI.
What Can an NRI Buy in Mumbai? (FEMA Rules)
Under FEMA (the Foreign Exchange Management Act), the rules are clear:
Mumbai’s western suburbs — Andheri, Jogeshwari, Goregaon, Malad, Kandivali, Vasai, Nalasopara — are entirely residential and commercial zones. Properties listed on f21properties.com fall within the permitted category for NRI purchase.
Documents You Need as an NRI Buyer
Keep these ready before you start:
- Valid Indian passport (or OCI card)
- PAN card (mandatory for any property transaction above the prescribed threshold)
- NRE or NRO bank account details in India
- Overseas address proof (utility bill or bank statement from your country of residence)
- Visa / residence permit of your country of stay
- Power of Attorney (notarised and apostilled) — if you cannot be present in Mumbai for registration
Most bookings in Mumbai can now be done remotely — video KYC, digital agreement signing and virtual site tours are standard practice for NRI buyers.
How to Pay — NRE vs NRO Account
All payments must go through proper Indian banking channels. Cash, informal transfers or hawala are strictly prohibited under FEMA and attract severe penalties.
| Feature | NRE (Non-Resident External) | NRO (Non-Resident Ordinary) |
|---|---|---|
| Holds | Foreign earnings converted to INR | India income — rent, dividends, pension |
| Interest tax | Tax-free in India | Taxable (TDS applies) |
| Repatriation | Fully repatriable anytime | Capped at USD 1 million per financial year |
| Best for | Investment you may repatriate later | Deploying India-earned income |
Tax on Property for NRIs in Mumbai
Rental income is taxable in India at your applicable slab rate, and your tenant is required to deduct TDS before paying rent — even if rent is credited to a foreign account.
Capital gains on sale:
- Sold within 24 months → Short-Term Capital Gains, taxed at slab rates
- Held more than 24 months → Long-Term Capital Gains, taxed at the prevailing LTCG rate (plus surcharge and cess)
- The buyer deducts TDS from sale proceeds before paying you — under Section 195 of the Income Tax Act
Section 54 exemption: If you sell a residential property and reinvest the capital gains into another residential property in India within the prescribed timeframe, you may claim exemption on LTCG. Plan this before the sale, not after.
DTAA (Double Tax Avoidance Agreement): India has DTAA treaties with the UAE, USA, UK, Canada, Singapore and most major NRI destinations, preventing double taxation on the same income. Obtain a Tax Residency Certificate (TRC) from your country of residence and file Form 10F in India to claim benefits. Tax rates change — confirm current rates with a CA.
Repatriation — Getting Your Money Back Abroad
After selling a Mumbai property, repatriation works like this:
The NRO repatriation cap is USD 1 million per financial year per individual — so an NRI couple can collectively repatriate up to USD 2 million per year. If your purchase used NRE or FCNR funds and you can prove it, the original investment amount can be repatriated separately, outside that limit.
Power of Attorney — Can Someone Buy on My Behalf?
Yes. As an NRI, you can execute a POA in favour of a trusted person in India — a family member, lawyer or authorised representative. The POA must be:
- Notarised in your country of residence
- Apostilled (for Hague Convention countries) or attested by the Indian Embassy/Consulate
- Adjudicated at the Sub-Registrar's office in India before use
With a valid POA, the agreement, registration and possession handover can all happen without you being physically in Mumbai. Read our complete remote-buying guide.
Why Mumbai’s Western Suburbs Suit NRI Buyers
The corridor from Andheri to Vasai along the Western Railway line offers NRI investors a combination few Indian markets match:
| Micro-market | NRI appeal |
|---|---|
| Andheri & Jogeshwari | Premium/mid launches; Metro Lines 1 & 7; JVLR link; one of Mumbai’s most active employment zones |
| Goregaon & Malad | Established mix of value and mid-premium housing; strong rental demand from IT/corporate hubs (NESCO, Mindspace, Infinity IT Park) |
| Vasai & Nalasopara | Entry/value tier; large industrial zones along Pelhar Highway; among the faster-appreciating corridors in the MMR |
Residential and commercial projects listed on f21properties.com are positioned as RERA-registered and verified — a non-negotiable for NRI buyers transacting remotely. (RERA applies to residential/commercial building projects; industrial land and units are governed by title and land-use approvals instead.)
Step-by-Step: How an NRI Buys Property in Mumbai
Common Mistakes NRIs Make — Avoid These
- Not verifying RERA: Always check the official MahaRERA portal before any payment
- Using the wrong account: Payments must come from NRE/NRO — not a foreign account directly
- Skipping POA adjudication: An unadjudicated POA is invalid for property registration in Maharashtra
- Not tracking NRE source: Failure to document NRE-funded purchases can cost you repatriation rights at sale
- Ignoring TDS on sale: The buyer will deduct TDS — apply for a lower-deduction certificate in advance if your actual liability is lower