Chennai is a favourite with NRI investors — familiar, stable and value-rich. The good news is that buying as an NRI is straightforward, with a few extra rules to know.
What NRIs can and can't buy
NRIs and persons of Indian origin can freely buy residential and commercial property in India. They cannot buy agricultural land, plantations or farmhouses (these can generally only be inherited or gifted).
Paying for it
Payments must be made through proper banking channels — typically from an NRE, NRO or FCNR account in India, via normal banking transfers. Cash purchases are not allowed.
Power of Attorney (POA)
Since you may not be in India for registration, a Power of Attorney to a trusted person lets them complete the registration and formalities on your behalf. Have the POA drafted carefully and executed/attested as required (often via the Indian consulate abroad).
Taxes & TDS
Stamp duty and registration apply the same as for residents (around 8% in Tamil Nadu). Be aware of TDS rules on property transactions, and that rental income and capital gains are taxable in India — many NRIs use a CA to handle filings.
Repatriation
Sale proceeds can generally be repatriated within RBI limits and conditions, especially when the purchase was funded through NRE/FCNR sources. Keep all purchase and payment records — they make repatriation and tax compliance far easier later.
Practical tips
Do extra due diligence remotely: insist on verified documents, use a property lawyer for title checks, prefer RERA-registered or completed projects, and ask for video walkthroughs. A little extra care upfront makes long-distance ownership stress-free.
Rules under FEMA and tax law change — confirm current details with your bank and a chartered accountant before transacting.