NRI Buyer Guide
How NRIs Buy Commercial Property in India
Complete guide — FEMA rules, GST, payment routing, legal ownership.
✅FEMA — NRIs Can Buy Freely
Under FEMA, Non-Resident Indians can freely purchase commercial property in India (excluding agricultural land). No RBI approval needed. No ownership cap. Funds must route through NRE, NRO, or FCNR banking channels.
💸Payment Routing — NRE to India
Transfer funds from your Dubai/overseas bank to an NRE account in India. Commercial property payment from NRE accounts carries no LRS limit (only NRO accounts have LRS constraints). Maintain a clear paper trail from the foreign source to the Indian account.
🧾GST on Under-Construction
12% GST applies on the purchase of under-construction commercial property. Ready/completed commercial properties are exempt from GST. Factor this into total acquisition cost. Registered businesses can claim GST input tax credit.
📊Rental Income Tax — NRI Obligation
Rental income from Indian commercial property is taxable in India at the applicable slab rate (for individuals) or flat 30% for NRIs without slab deduction on gross rent. India-UAE DTAA (Double Tax Avoidance Agreement) applies — avoid double taxation on the same income in both countries.
🔑Power of Attorney — Remote Purchase
NRI buyers who cannot travel to India use a registered Power of Attorney to complete property registration. IA Wealth coordinates POA documentation, registration, and property inspection on behalf of NRI buyers.
💼Repatriation of Sale Proceeds
After selling commercial property, NRIs can repatriate up to USD 1 million per financial year from sale proceeds (held in NRO account). Amount above this requires RBI approval. Capital gains are taxed in India before repatriation.
