Buying Property in Dombivli as an NRI

1. Why Dombivli for NRI Investment?

Dombivli has emerged as one of the most attractive corridors for NRI real estate investment in the Mumbai Metropolitan Region. Here is why:

• Price advantage: At ₹8,750–₹13,200/sq ft, Dombivli offers 40–60% better value than Thane or Powai at comparable quality.
• Infrastructure boom: The Navi Mumbai Metro (Line 5) extension and the proposed Mumbai-Nagpur Expressway feeder will dramatically improve connectivity by 2027.
• Rental yields: 3.5–4.5% gross rental yields — among the highest in the MMR for sub-₹1.5 Cr properties.
• Trusted builders: Lodha, Rustomjee, Runwal and Regency all have active projects with RERA clearances.

2. FEMA Rules — What NRIs Can Buy

Under the Foreign Exchange Management Act (FEMA), NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) can purchase residential or commercial property in India without RBI approval — with key exceptions.

Payment must be made through normal banking channels (NRE / NRO / FCNR account or direct remittance from abroad). Cash payments are prohibited.

3. TDS on Property Purchase

When purchasing from an NRI seller, the buyer must deduct TDS. When an NRI buys from a resident Indian, different rules apply.

• NRI buying from Resident Indian: TDS @ 1% if property value exceeds ₹50 lakhs (same as resident buyer).
• NRI buying from NRI Seller: TDS @ 20% on Long-Term Capital Gains (if held >2 years), or at applicable slab rate for Short-Term Gains.
• TDS must be deposited using Form 26QB within 30 days and a TDS certificate (Form 16B) issued to the seller.

4. NRI Home Loans in India

Most major Indian banks and HFCs offer home loans to NRIs. Key points to know:

• Eligibility: Valid Indian passport, minimum 2 years employment abroad, stable income (varies by bank).
• LTV ratio: Up to 80% of property value (same as residents).
• Repayment: EMIs must be paid from NRE / NRO account or direct remittances — not from foreign accounts directly.
• Interest rates: Typically 0.25–0.50% higher than resident home loan rates.

5. Power of Attorney

NRIs who cannot be physically present in India can execute a Power of Attorney (POA) to authorise a trusted representative (family member or lawyer) to sign documents on their behalf.

• The POA must be notarised in the country of residence and then attested by the Indian Embassy or Consulate.
• Once in India, it must be adjudicated and stamped at the Sub-Registrar's office.
• A specific POA (limited to one transaction) is safer than a general POA.

6. Repatriation of Funds

NRIs can repatriate the sale proceeds of property, subject to conditions:

• Repatriation is allowed up to 2 residential properties (capital amount only, not rental income).
• Amount repatriated cannot exceed the original purchase price (foreign remittance / NRE account funds used).
• Funds from NRO account: Up to USD 1 million per financial year can be repatriated after payment of applicable taxes.
• Rental income: Freely repatriable after payment of TDS at applicable rates.

7. NRI Buyer Checklist

• ✅ Verify RERA registration of the project on MahaRERA portal
• ✅ Check builder track record — completed projects, litigation history
• ✅ Open NRE/NRO account for fund routing
• ✅ Get a trusted local lawyer to review the sale agreement
• ✅ Execute and notarise POA if you will not be present for registration
• ✅ Budget for stamp duty (5–6% in Maharashtra) and registration (1%)
• ✅ Factor in GST (5% for under-construction, Nil for ready-to-move)
• ✅ File IT return in India if taxable income exceeds the basic exemption limit