Can NRIs Buy Property in Mohali?
Yes. Under FEMA (Foreign Exchange Management Act) regulations, NRIs and OCI cardholders are permitted to purchase residential and commercial property in India without any special permission, with the notable exception of agricultural land, plantation property, and farmhouses. A residential apartment purchase in a project like Gillco Meraqui falls well within permitted categories.
Funding the Purchase
NRIs typically fund a property purchase through an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account, or through normal banking channels from abroad — cash transactions are not permitted for NRI property purchases under FEMA rules. Home loans are also available to NRIs from Indian banks, though eligibility documentation and interest terms can differ slightly from resident buyers.
Key Documents NRIs Need
- Valid passport and visa, or OCI/PIO card
- PAN card (mandatory for the transaction)
- NRE/NRO account details and statements
- Overseas address proof
- Income proof from overseas employment, if applying for a home loan
- Power of Attorney (PoA), if a family member or representative will handle the transaction locally on the NRI's behalf
The Power of Attorney Route
Many NRIs cannot be physically present in Mohali through every stage of booking, documentation, and registration. A registered and notarized Power of Attorney — ideally attested at the Indian consulate/embassy in the NRI's country of residence — allows a trusted representative to sign documents, make payments, and complete registration formalities on the buyer's behalf.
Repatriation of Funds — What to Know
NRIs can typically repatriate sale proceeds from an Indian property (subject to certain conditions and limits under FEMA), but this is a separate and distinct process from the purchase itself, governed by its own set of RBI rules. It's worth understanding repatriation rules even at purchase stage if a future resale or fund transfer abroad is anticipated.
Tax Considerations for NRI Buyers
NRIs are subject to TDS (Tax Deducted at Source) provisions differently than resident buyers in various property transactions, and rental income or capital gains from an Indian property are typically taxable in India regardless of residency status. Update soon — TDS and tax treatment with a chartered accountant experienced in NRI taxation before finalizing a purchase
