Gurgaon Real Estate for NRIs: Rules and Tips for Investing

Gurgaon is a common choice for NRIs buying property in India, whether for a future home, for family, or as a rental investment. The process is similar to a resident purchase, but the rules on payment, tax and repatriation are different, and managing due diligence from abroad adds risk. This guide covers the rules NRIs most need to get right.

The earlier version of this article said short-term gains for NRIs were taxed at a flat 30% and long-term gains at 20% with indexation. Both are out of date. We have updated the tax section and tightened the rest. For a market view of where NRIs are buying, see our NRI investment guide for Gurgaon 2026.

What NRIs can buy

Under India's foreign exchange rules (FEMA), NRIs and OCI cardholders can buy residential and commercial property in India without specific RBI approval. They cannot buy agricultural land, plantation property or farmhouses, except by inheritance. There is no limit on the number of residential or commercial properties, but repatriation rules (below) treat them differently.

How to pay

• Payments must come through normal banking channels: inward remittance from abroad, or funds in an NRE, FCNR(B) or NRO account in India.
• Payments cannot be made in foreign currency notes or traveller's cheques.
• Keep records of every remittance and payment. They matter later when you repatriate sale proceeds.

NRE vs NRO accounts

Home loans for NRIs

Indian banks and housing finance companies lend to NRIs for homes in India. The same RBI loan-to-value limits apply as for residents: up to 75% of value for homes above Rs 75 lakh. Lenders usually ask for overseas employment and income proof, credit history where available, and often a resident co-applicant or local contact. EMIs must be paid from NRE, NRO or FCNR accounts or by inward remittance.

Tax on rental income

Rent from Indian property is taxable in India. A tenant paying rent to an NRI landlord must deduct TDS before paying, at a much higher rate than for a resident landlord. The NRI can then claim the standard deduction and other eligible deductions when filing the Indian return, and claim a refund of excess TDS. Check whether the Double Taxation Avoidance Agreement with your country of residence allows a foreign tax credit.

Tax when you sell

• Long-term gains (property held more than 24 months): 12.5% plus surcharge and cess, without indexation, for sales on or after 23 July 2024. Unlike resident individuals, NRIs cannot opt for the older 20% with indexation route.
• Short-term gains (held for 24 months or less): taxed at the normal slab rates.
• TDS: the buyer must deduct TDS on the sale consideration at the rate for the applicable gain, including surcharge and cess. Because this can be far more than the actual tax, NRIs can apply in advance for a lower or nil TDS certificate.
• Exemptions: reinvesting long-term gains in a residential house in India, or in specified bonds within the time limits, can reduce the tax, subject to conditions and caps.

India's new Income-tax Act, 2025 took effect from April 2026 and renumbers many provisions. Confirm the current position with a chartered accountant. Our capital gains guide has more detail.

Repatriating sale proceeds

• Sale proceeds of residential property bought with foreign exchange (NRE/FCNR funds or inward remittance) can be repatriated up to the amount originally paid in foreign exchange, for up to two residential properties.
• Other amounts can be repatriated from the NRO account within the USD 1 million per financial year limit, after taxes.
• Banks will usually need a chartered accountant's certificate and the applicable tax forms before remitting.

Managing due diligence from abroad

• Verify the project and documents yourself: HRERA registration, licence, title, OC and dues. Our document verification checklist lists what to check.
• Use a specific power of attorney rather than a general one. Limit it to the transaction, executed and attested correctly abroad and adjudicated in India. See our power of attorney guide.
• Pay only to the developer or seller, never to an intermediary's account.
• Plan for management: tenant search, rent collection, maintenance and society dues.

Choosing where to buy

Many NRIs prefer ready or near-complete homes in established societies, because they are easier to inspect remotely and can be let quickly. Under-construction purchases can work, but need closer monitoring of HRERA progress reports.

Frequently asked questions

Can an NRI buy agricultural land or a farmhouse in Gurgaon?

No. Under FEMA, NRIs and OCIs cannot buy agricultural land, plantation property or farmhouses in India, except by inheritance. Residential and commercial property is allowed.

What tax does an NRI pay on selling a Gurgaon flat?

For property held over 24 months, long-term gains are taxed at 12.5% plus surcharge and cess without indexation for sales from 23 July 2024. Short-term gains are taxed at slab rates. The buyer deducts TDS, and a lower deduction certificate can be sought in advance.

How much can I repatriate from my NRO account?

Up to USD 1 million per financial year, after applicable taxes and with the required documentation.

Do I need to travel to India to buy?

Not necessarily. A properly executed specific power of attorney can let a trusted person sign and register on your behalf, but verify documents carefully and pay only to the seller or developer.

How NStay Homes can help

We help NRI clients check projects and documents remotely, coordinate site visits and inspections, and arrange letting and management after purchase. Speak to NStay Homes advisor Naresh Shekhawat on 911 911 9605.