🌎 NRI Guide to Buying Property in Dombivli
Complete legal, financial and procedural guide for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) buying residential property in Dombivli and the Mumbai Metropolitan Region.
📗 Table of Contents
1. Can NRIs Buy Property in India?
Yes. Under the Foreign Exchange Management Act (FEMA) and RBI guidelines, NRIs and OCIs (Overseas Citizens of India) are permitted to purchase residential and commercial property in India without prior approval from the Reserve Bank of India.
Key Rule: NRIs do not need RBI permission to buy property in India, but the purchase must be through banking channels and comply with FEMA regulations.
Persons of Indian Origin (PIOs) holding an OCI card have the same property rights as NRIs. However, foreign nationals of non-Indian origin require RBI approval and are subject to additional restrictions.
2. Types of Property NRIs Can Purchase
| Property Type | Permitted? | Notes |
|---|---|---|
| Residential Apartments/Flats | ✔ Yes | No limit on number of properties |
| Commercial Property | ✔ Yes | Offices, shops, warehouses allowed |
| Agricultural Land / Farm House | ✘ No | Special RBI permission required |
| Plantation Property | ✘ No | Restricted under FEMA |
3. Home Loan Options for NRIs
NRIs can avail home loans from Indian banks and housing finance companies. Key details:
- Loan-to-Value (LTV): Up to 80% of property value
- Tenure: Up to 20 years
- Repayment: EMI must be paid from NRE/NRO/FCNR account or by inward remittance in foreign currency
- Interest Rate: Typically same as resident Indians (floating ~8.5% to 9.5% p.a.)
Banks Offering NRI Home Loans
SBI, HDFC Bank, ICICI Bank, Axis Bank, Bank of Baroda, Punjab National Bank, LIC Housing Finance, and most major housing finance companies offer NRI home loan products.
Tip: Compare the Total Cost of Loan including processing fees, prepayment charges and insurance add-ons before selecting a lender.
4. Tax Implications & TDS Rules
TDS on Property Purchase from NRI Seller
If you (as a buyer) purchase property from an NRI seller, you must deduct TDS (Tax Deducted at Source):
| Type of Gain | TDS Rate |
|---|---|
| Short-Term Capital Gains (held < 2 years) | 30% + applicable surcharge & cess |
| Long-Term Capital Gains (held ≥ 2 years) | 20% + applicable surcharge & cess |
Tax Benefits for NRIs
- NRIs can claim deduction under Section 80C on principal repayment (up to ₹1.5 lakh/year)
- Interest on home loan: deductible under Section 24 up to ₹2 lakh for self-occupied property
- NRIs are exempt from TDS when buying from resident Indian sellers (standard 1% TDS applies for properties over ₹50 lakh)
5. Documents Required
- Valid Indian Passport (with NRI/OCI status)
- OCI Card or PIO Card (if applicable)
- PAN Card (mandatory for property transactions above ₹5 lakh)
- NRE / NRO / FCNR Bank Account details
- Address proof abroad (utility bill, driving licence)
- Passport-size photographs
- Power of Attorney (if purchasing through a representative in India)
- RERA certificate of the project
Power of Attorney: If you cannot be present in India to complete the purchase, you can appoint a trusted person (family member, lawyer) as your Power of Attorney holder. The PoA must be notarised and apostilled in the country of residence.
6. Step-by-Step Buying Process
1
Shortlist Property: Research MahaRERA-registered projects in Dombivli/MMR. Verify RERA number at maharera.mahaonline.gov.in.
2
Apply for Home Loan (if needed): Get pre-approval from NRI home loan division of your preferred bank.
3
Execute Agreement to Sale: Review and sign the registered Agreement for Sale. Pay 10% booking amount via NRE/NRO account or inward remittance.
4
Due Diligence: Verify clear title, RERA approval, approved building plan, and encumbrance certificate via a qualified property lawyer.
5
Register Sale Deed: Execute and register the Sale Deed at the Sub-Registrar’s office. Pay stamp duty (6% in Maharashtra) and registration charges (1%).
6
Payment & Possession: Make stage-wise payments as per the builder’s payment schedule. Collect possession on completion.
7. Repatriation of Funds
NRIs can repatriate sale proceeds of residential property subject to these limits:
- Up to 2 residential properties can be repatriated without RBI approval
- Repatriation amount limited to original cost of acquisition (not profit) for properties purchased with NRO funds
- Properties purchased with NRE funds: full repatriation permitted
- RBI Form 15CA and 15CB (CA certificate) required for repatriation above ₹5 lakh
Key Rule: Keep all payment records, bank transaction receipts and TDS certificates for hassle-free repatriation when you eventually sell.
8. Why NRIs Choose Dombivli & MMR
- Affordable Entry Point: Premium 3 BHK homes from ₹1.40 Cr vs ₹3.5 Cr+ in South Mumbai
- High Rental Yields: 3-4% rental yield with consistent capital appreciation of 8-12% annually
- Infrastructure Growth: Navi Mumbai International Airport (35 km), Mumbai Trans Harbour Link, new metro lines
- Established Developers: Lodha, Godrej, Runwal, Kalpataru, Tata Housing all active in the region
- RERA Compliance: Maharashtra has one of India’s most active RERA authorities, protecting buyers
- NRI Community: Large diaspora from Dombivli/Kalyan in USA, UK, UAE, Canada and Australia
9. Frequently Asked Questions
Can an OCI card holder buy property in India without RBI permission?
Yes. OCI card holders have the same rights as NRIs for purchasing residential and commercial property in India without requiring prior RBI approval. Agricultural land and plantation property are still restricted.
What is the stamp duty for property purchase in Maharashtra for NRIs?
Stamp duty in Maharashtra is 6% of the market value (5% stamp duty + 1% metro cess for properties in municipal areas). Registration charges are 1% of the property value, capped at ₹30,000.
Can NRIs purchase property jointly with a resident Indian?
Yes. NRIs can purchase property jointly with a resident Indian. However, the payment must be made from the NRI’s NRE/NRO account or through inward remittance.
How can I verify a RERA registration before buying?
Visit maharera.mahaonline.gov.in and enter the RERA registration number. You can see project details, promoter information, approved plans and complaint history.
Is it safe to buy under-construction property from abroad?
It is relatively safe for RERA-registered projects since developers must maintain an escrow account and provide quarterly updates. We recommend appointing a local lawyer for due diligence and a PoA holder to attend site visits on your behalf.
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