In recent years, Non-Resident Indians (NRIs) residing in Singapore have shown a growing interest in investing in the Indian real estate market. Several factors contribute to this trend, making 2025 an opportune time for such investments.​
India’s robust economic growth, coupled with a booming real estate sector, presents lucrative investment opportunities. The depreciation of the Indian Rupee against the Singapore Dollar enhances the purchasing power of NRIs, allowing them to acquire properties at relatively lower costs. Additionally, owning property in India serves as a tangible connection to one’s roots, offering emotional satisfaction alongside financial benefits.​
The Indian government has implemented several reforms to attract foreign investments, including the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST). These measures aim to increase transparency and reduce corruption in the real estate sector. Furthermore, the introduction of Real Estate Investment Trusts (REITs) provides NRIs with diversified investment options.​
The digitalization of property transactions, including online property listings, virtual tours, and digital documentation, has simplified the process for NRIs to invest in Indian real estate from abroad. These technological advancements reduce the need for physical presence, making it more convenient for NRIs in Singapore to explore and finalize property deals in India.​
Yes, NRIs are permitted to purchase property in India, subject to certain regulations outlined by the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India (RBI). Understanding these guidelines is crucial to ensure a lawful and hassle-free investment process.​
Under FEMA, NRIs can invest in the following types of properties:​
However, NRIs are prohibited from purchasing:​
Exceptions are made if such properties are acquired through inheritance or as gifts from relatives residing in India.
NRIs are allowed to jointly own property with other NRIs or Persons of Indian Origin (PIOs). However, joint ownership with a resident Indian is subject to specific conditions and may require prior approval from the RBI.​
All transactions must be conducted in Indian Rupees through normal banking channels. Payments can be made using funds from
Cash transactions are strictly prohibited.​
The Foreign Exchange Management Act (FEMA) governs all foreign exchange transactions in India, including real estate investments by NRIs. Compliance with FEMA regulations is essential to ensure the legality of property transactions.​
FEMA permits NRIs to acquire immovable property in India, provided the funds are remitted through proper banking channels. The act also outlines the procedures for transferring property through sale, gift, or inheritance.​
NRIs can repatriate the proceeds from the sale of property, subject to the following conditions:​
Repatriation beyond this limit requires prior approval from the RBI
NRIs are subject to tax on income generated from property in India, including rental income and capital gains. They must obtain a Permanent Account Number (PAN) and file income tax returns in India. Double Taxation Avoidance Agreements (DTAAs) between India and other countries, such as Singapore, help prevent the same income from being taxed in both jurisdictions.​
The Reserve Bank of India (RBI) plays a pivotal role in regulating foreign investments in India, including real estate transactions by NRIs. Adhering to RBI guidelines ensures the legality and smooth execution of property deals.​
Most property transactions by NRIs fall under the ‘Automatic Route,’ meaning they do not require prior approval from the RBI. However, certain scenarios necessitate explicit permission:
Buying property from overseas sounds tough, but it’s doable. You don’t need to be in India physically, and the process in 2025 is a lot smoother than it used to be. You just need to get the basics sorted and stay within legal boundaries. Most of the legwork happens digitally now, so you won’t be chasing papers across borders.
Start with the type of property you want. Most NRIs go for residential flats or apartments in metro cities or upcoming urban zones. Commercial real estate like shops and office space is another solid choice. Stick to what’s legally permitted. Skip agricultural or plantation land, even if the price looks sweet. Those are off-limits.
If you haven’t already, set up your NRE or NRO account with an Indian bank. These are your legal routes to move money into India. You can use funds from your FCNR account too. Avoid sending funds via informal or middleman channels. Those can cause issues later with the RBI or tax authorities.
You also need a PAN card. This is non-negotiable for any kind of financial or legal activity in India. Most banks will help you get one online, or you can apply through the Indian consulate in Singapore.
Don’t just fall for what’s trending on social media. Check if the builder is RERA-registered. RERA made it mandatory for builders to follow specific rules and timelines. This helps weed out shady players. Also, look at past projects. Did they deliver on time? Are buyers happy?
If you’re buying from a private seller, make sure you verify the title and ownership documents. Get a lawyer to double-check everything. Better safe than stuck in court.
If you can’t be in India to sign stuff, you’ll need to give POA to someone you trust. This person can sign agreements, register the property, and handle paperwork on your behalf. You’ll need to get the POA notarised at the Indian embassy in Singapore, then have it stamped once it’s sent to India.
Once everything checks out, you can go ahead with the payment. Pay through your NRE/NRO/FCNR accounts. Then comes the big legal bit – registering the property. This has to be done at the local sub-registrar office where the property is located. Registration includes paying stamp duty and registration charges, which vary state to state.
Keep digital and physical copies of everything. Also, make sure the property is mutated in your name at the local municipal office for tax records.
Getting a property registered isn’t just about signing papers. It’s about locking in your legal claim on that asset. If you skip this step or don’t do it right, you could lose the property or land in legal mess later.
Before registration, do a full legal check. Verify these:
Your lawyer should verify these before you pay anything big. If you’re buying a resale flat, ensure the seller has the original sale deed.
Each Indian state has its own rates for stamp duty and registration. For example, Maharashtra charges about 5 percent of the property value as stamp duty, while Delhi might charge 6 percent. Women buyers in some states get lower rates.
Registration charges are usually around 1 percent. These fees must be paid online or at authorised banks. Don’t try to under-report the property value to save money. That’s illegal and risky.
A lot of states now allow parts of the registration process to be done online. Some even support remote video-based verification for NRIs. But the final sign-off still usually needs POA if you’re not in India.
Also, make sure your property gets recorded in the land records. This is called mutation. Without it, your name won’t appear in municipal tax records. Mutation is handled by the local municipal office and can now be done online in most cities.
The rules for NRIs investing in Indian real estate are pretty friendly compared to other countries. But you still need to follow what FEMA and RBI say. Some of these rules got tweaks in recent years, so here’s what’s current in 2025.
You can buy:
You cannot buy:
Aadhaar is not compulsory forNRIs. But having it makes things easier when dealing with utilities, banks, and property tax records. You can apply for an NRI Aadhaar when you visit India. Otherwise, your PAN and passport will work for most property stuff.
You can invest jointly with another NRI or PIO. You can also co-own property with a resident Indian (like a spouse), but there are more checks in place. The property should still be funded legally from your NRE/NRO/FCNR accounts. Make sure the joint owner’s name is also on all paperwork.
You can apply for home loans in India as an NRI. Most big banks in India offer these now, including SBI, HDFC, and ICICI. The loan amount, interest rate, and repayment period depend on your income and the property’s location. The loan must be repaid through your NRE/NRO account only.
Banks might ask for more documents than they would from a local buyer. Expect to submit your passport, visa or work permit, salary slips, and overseas bank statements. If you’re self-employed, then tax filings and business proof will be needed too.
Investing in Indian property is one thing. But what if you want to sell later and take your money back to Singapore? That’s where repatriation comes in. You have to go by the rules or you could end up blocked from moving funds or facing tax penalties.
Once you decide to sell your property, make sure the buyer pays through legal banking channels. If you bought the property using your NRE or FCNR account, and it was under FEMA-compliant terms, you can repatriate the sale proceeds.
If you used your NRO account or inherited the property, things are different. In those cases, you’re allowed to repatriate up to USD 1 million per financial year. Anything above that needs RBI permission.
Before your bank processes any repatriation, you’ll need to submit:
Don’t skip the tax clearance step. The income tax department can freeze funds if these aren’t submitted.
If you’re renting out the property, you can repatriate the rental income after taxes are paid in India. The rent must be credited to your NRO account first. Then you can move the funds to Singapore under the USD 1 million limit.
You’re allowed to gift or transfer the property to relatives in India. But repatriating the value of a gifted property is not always allowed unless you’ve inherited it or can show you originally funded it from overseas legally. Again, the paperwork is key.
Even if you live in Singapore and earn in SGD, once you invest in Indian real estate, you’re also in the Indian tax net. India doesn’t let go of real estate income easily. So you’ve got to know what taxes apply and how to play it smart.
If you rent out your property in India, the income is taxed under ‘Income from House Property’. You have to file Indian income tax returns, even if the income is modest. The good news? You can deduct property taxes, standard maintenance at 30 percent, and interest on any home loan.
Also, tenants are required to deduct TDS (Tax Deducted at Source) at 30 percent before transferring rent to your account. It’s your job to make sure they know this. If they skip it, you’re the one who’s going to be in trouble with the tax folks.
There are two kinds of capital gains taxes in India.
Short-term capital gains (STCG) apply if you sell the property within two years of buying it. The gains are added to your taxable income and taxed at regular slab rates.
Long-term capital gains (LTCG) apply if you hold the property for more than two years. LTCG is taxed at 20 percent with indexation benefits. This helps adjust for inflation so you don’t pay tax on imaginary profits.
If an NRI sells a property, the buyer must deduct 20 percent TDS on long-term capital gains and 30 percent on short-term gains. Most buyers don’t know this and skip it. That can mess up your ability to repatriate funds later. Always use a tax consultant who understands NRI cases. They can help get a lower TDS certificate if your actual tax liability is less.
India and Singapore have a tax agreement called DTAA that prevents the same income from getting taxed in both places. You may still need to pay in India, but you can use that as a credit when filing taxes in Singapore. This saves you from being double charged.
But to claim DTAA benefits, you’ll need a Tax Residency Certificate (TRC) from Singapore and some extra documentation. Again, a good CA is your best friend here.
In the end, real estate in India can be a steady asset in your portfolio — if you treat it like a business deal and not just an emotional decision. Combine emotion with paperwork, and you’ve got a safe bet.
