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NRI guide to buying property in Pune
NRIs and OCIs can buy residential property in India freely — no RBI permission needed. The rules to get right are around how you pay, how you can take money back out, and tax. Here is the 2026 picture for a Pune purchase.
What an NRI can and cannot buy
- Allowed: residential and commercial property — any number, no RBI approval.
- Not allowed: agricultural land, farmhouses and plantation property.
- Payment must be through banking channels (inward remittance, or NRE/NRO/FCNR accounts). Paying in cash or foreign currency is a FEMA violation.
Funding: NRE vs NRO
- NRE account (foreign income): funds — and later sale proceeds — are freely repatriable.
- NRO account (Indian income like rent): repatriation is capped at USD 1 million per financial year, with Forms 15CA/15CB (a CA certificate) confirming taxes are paid.
- A power of attorney to a trusted person in India makes registration and formalities far easier when buying remotely.
Home loans for NRIs
Most major Indian banks offer NRI home loans, typically at rates ~0.5–1% above resident rates, with loan-to-value around 70–80% and tenure up to ~15 years. EMIs must be paid from an NRE/NRO account.
Tax when you sell
On resale, long-term capital gains (held over 24 months) are taxed at 12.5% plus surcharge and cess (no indexation, for transfers after 23 Jul 2024); short-term gains are taxed at slab rates. Buyers must deduct TDS at these rates when buying from an NRI seller. NRI sellers can apply for a Lower TDS Certificate (Form 13) to avoid over-deduction.
Always verify RERA
MahaRERA protections apply to NRIs exactly as to residents — buy only registered projects and verify the registration, carpet area and possession date on the portal (see our MahaRERA guide). For under-construction homes, professional governance and a strong developer matter more when you are managing remotely.
FAQs
Can an NRI buy a flat in Pune without coming to India?
Yes. Payment goes through banking channels and a power of attorney to a trusted person can handle registration. RERA protections apply as for residents.
How much loan can an NRI get?
Typically 70–80% of the property value, at rates about 0.5–1% above resident home loans, repaid via an NRE/NRO account.
Can an NRI repatriate the sale proceeds?
Yes, subject to tax compliance — freely from NRE funds; from NRO funds capped at USD 1 million per financial year with Forms 15CA/15CB. Rules change, so confirm with your bank/CA.