✅ NRI Guide to Real Estate in India (2025 Edition)

India’s real estate market continues to grow on the strong foundation of more than 32 million NRIs and PIOs worldwide, with the community expanding by over 320,000 people annually. Cities like Mumbai, Pune, Bengaluru, Hyderabad, and Goa remain top favourites due to transparency, appreciation potential, and easier digital processes, making 2025 a strong year for NRI investments.

✅ Why PAN Card Is Important for NRIs

A PAN (Permanent Account Number) remains mandatory for NRIs involved in almost any financial transaction in India. Whether you're buying or selling property, paying capital gains tax, completing bank KYC formalities, repatriating funds, or investing in financial instruments, a PAN is essential. It acts as your unique financial identity in India and ensures smooth compliance.

✅ Property Ownership Rules for NRIs in 2025

NRIs can legally purchase residential and commercial properties in India without restrictions. Payments must flow through proper banking channels such as NRE, NRO, or FCNR(B) accounts, or via inward remittance.

However, some categories remain restricted. Agricultural land, plantation property, and farmhouses cannot be purchased directly. These are allowed only if inherited or received as a gift from an eligible person.

For NRIs residing abroad for long periods, executing a registered Power of Attorney (PoA) in favour of a trusted representative simplifies the entire buying process, including agreement signing, loan processing, and registration.

✅ Selling Property: What NRIs Should Know (2025 Updates)

NRIs are permitted to sell residential and commercial properties to Indian residents, other NRIs, or PIOs. But inherited agricultural land may only be sold to a resident Indian citizen.

Capital gains taxation has seen important changes. For properties held for more than two years, the new tax regime introduced in 2024–25 imposes a 12.5% long-term capital gains tax without indexation, with an effective tax outflow of around 14–15% after surcharge and cess. Properties held for less than two years attract short-term capital gains tax, taxed as per the applicable income slab, often ranging from 20–35%.

✅ TDS on Property Sale by NRIs (2025)

One of the most critical compliance areas for NRI sellers is TDS deduction by the buyer. The buyer—whether resident or NRI—must deduct TDS on every payment they make to the NRI seller.

LTCG property: approx. 14–15%
STCG property: taxed as per slab (20–35%)

The buyer must also obtain a TAN number, deposit the deducted tax within seven days, file Form 27Q quarterly, and issue Form 16A to the seller. Failing to deduct TDS correctly makes the buyer liable for the entire tax amount, along with interest and penalties.

✅ Lower or Nil TDS Certificate (Form 13)

To avoid heavy TDS being deducted on the full sale value, NRIs can apply for a Lower or Nil TDS Certificate under Form 13. This is extremely useful when:

The actual capital gain is much lower
Significant renovation or improvement costs exist
The property is being sold at a loss
The purchase cost drastically reduces taxable gains

Approval usually takes 2–4 weeks, and once granted, buyers deduct TDS at the reduced rate.

For a more detailed explanation of TDS and Capital Gains rules for NRIs, you can read my in-depth guide here:
https://punerealestate-deepak.blogspot.com/2025/11/tds-capital-gain-rules-for-nri-property.html

✅ Repatriation of Sale Proceeds (2025 Rules)

NRIs can repatriate funds after selling property, provided all taxes are paid. Banks require the sale deed, TDS details, a CA certificate in Form 15CB, and the income tax return showing the capital gains calculation.

Funds purchased using NRE or FCNR(B) accounts can be fully repatriated. If proceeds are in an NRO account, up to USD 1 million per financial year can be repatriated under RBI norms.

✅ Our Services for NRIs & PIOs (2025 Edition)

(PAN assistance removed as requested)

With over 18 years of hands-on experience in real estate and documentation, we support NRIs through a professional and transparent process. Our services include:

1. Real Estate Advisory & Brokering

We assist in buying, selling, and leasing luxury and high-value properties across Pune, Mumbai, Goa, Lonavala, Panchgani, and Mahabaleshwar. This includes primary, resale, and commercial assets.

2. Documentation & Legal Support

From Sale Deeds and Gift Deeds to Wills and Power of Attorney, we help ensure that documentation is legally watertight. We also assist Pune-based owners in recovering or duplicating old property documents.

3. Tax & Compliance Assistance

Our support covers TDS guidance, capital gains understanding, help with Lower/Nil TDS certificates (Form 13), and ensuring buyer-side compliance including TAN procedures.

4. Buyer-Side Due Diligence

We provide independent advice on project selection, micro-location analysis, RERA checks, price benchmarking, and builder reputation—ensuring NRIs make confident, informed decisions.

✅ Why Work With Us

Our approach is ethical, structured, and built on trust. We maintain long-term relationships with NRI families worldwide who rely on us for clarity, safety, and professional handling of their property affairs. Our deep understanding of the legal, taxation, and documentation landscape ensures smooth transactions with complete transparency.