NRI buyers · Reviewed 29 Sep 2026

NRI guide to buying property in Surat

The FEMA rules, how to pay, NRI home loans, the TDS change from 1 October 2026, power of attorney in Gujarat and getting money back out when you sell.

Quick answer

Yes — NRIs and OCI cardholders can buy flats in Surat without RBI approval, as long as payment comes through Indian banking channels (NRE, FCNR(B), NRO or inward remittance). They can take a home loan on the same 75% LTV terms as residents, deduct 1% TDS when buying from a builder, and sign documents through a power of attorney if they cannot travel.

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What NRIs and OCIs can and cannot buy

Property NRIs and OCIs may buy in India
Allowed without RBI approvalNot allowed
Residential flats and housesAgricultural land
Commercial propertyPlantation property
Any number of propertiesFarmhouses

Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong and North Korea need prior RBI permission (except leases up to five years); this restriction does not apply to OCI cardholders.

How to pay

Permitted and prohibited payment routes for NRIs
UseDon't use
Inward remittance through normal banking channelsForeign currency cash
Debit to your NRE accountTravellers' cheques
Debit to your FCNR(B) depositPayments routed through a third party's account
Debit to your NRO accountCash in rupees

Pay the builder's RERA collection account directly and keep the bank's remittance advice for each payment — you will need it for repatriation later.

Buying an under-construction flat from abroad, step by step

  1. Shortlist on location, configuration and RERA completion date — our comparison of Surat luxury projects puts them side by side.
  2. Video walk-through of the site and sample flat; a family member can visit on your behalf.
  3. Verify RERA registration, approvals and quarterly progress on the GujRERA portal.
  4. Book from your NRE/NRO account. Under RERA the builder cannot take more than 10% before a registered agreement for sale.
  5. Sign the agreement for sale in person on a visit, or through a registered power of attorney.
  6. Pay construction-linked demands, deducting 1% TDS from each payment and filing Form 141.
  7. Take possession after the building-use (BU) permission, then register the sale deed or conveyance.

The resident's version of this process, with every document, is in our Surat buying process guide.

NRI home loans

Eligibility and published terms

Published NRI home-loan terms at three lenders
ICICI BankHDFC BankBank of Baroda
WhoNRIs; salaried abroad 1+ year, self-employed 3+ yearsNRIs and PIOsNRIs (Indian passport), PIOs, OCIs
Minimum incomeUSD 42,000 a year (US and others); AED 84,000 (GCC)Lender assessmentLender assessment
TenureUp to 30 yearsUp to 20 yearsAs per scheme
RateRepo-linked7.75% – 13.20%From 7.20%
Signing from abroadPower of attorney allows disbursalPower of attorney in HDFC's format—

Loan-to-value limits are the same as for residents — 75% of the property value above ₹75 lakh — and stamp duty cannot be financed. See the home loan guide for EMIs and pre-EMI during construction.

Repaying the loan

EMIs can come from NRE or NRO accounts, inward remittances or rent from the property. During construction, HDFC Bank's tranche-based EMI lets you start principal repayment from the first disbursement.

Documents for an NRI loan

Passport, visa or residence permit (or OCI card), PAN (ICICI accepts Form 97 from OCIs), recent salary slips, three months of overseas bank statements, and for some countries a recent overseas credit report.

TDS for NRI buyers and sellers

TDS in three NRI purchase scenarios
ScenarioWho deductsRateHow it is filed
NRI buys a new flat from a builder (resident seller)Buyer1% when price is ₹50 lakh or moreForm 141 (formerly 26QB), PAN-based, no TAN
Anyone buys a resale flat from an NRI seller — up to 30 Sep 2026BuyerOn the seller's capital gain: 12.5% + surcharge + cess if held over 24 months; slab rate if shorterTAN required; Form 27Q
Anyone buys from an NRI seller — from 1 Oct 2026BuyerSame rates as abovePAN-based Form 141 (Schedule E), no TAN — confirm on incometax.gov.in

An NRI seller can apply for a certificate for lower or nil deduction if the actual gain is smaller than the TDS would imply.

Power of attorney for a Gujarat purchase

Executing it abroad

Sign before a notary, then get it apostilled in a Hague Convention country (US, UK, Canada, Australia and most of Europe) or attested at the Indian embassy or consulate elsewhere (for example the UAE, Qatar and Kuwait).

Stamping within three months

Under the Gujarat Stamp Act, 1958 an instrument executed outside the state must be stamped after it is received in Gujarat, and the Collector cannot adjudicate it after three months from its first receipt in the state. Send the original to your attorney promptly.

Registration

A power of attorney used to buy or sell immovable property should be registered with the Sub-Registrar where the property is located. Keep the scope specific: the project, the unit and the acts permitted.

Selling later: repatriation

RBI allows repatriation of sale proceeds for up to two residential properties, provided the purchase was funded through banking channels. Funds in an NRO account can be remitted up to USD 1 million per financial year after tax. Your chartered accountant will guide you on the remittance forms your bank asks for.

Documents checklist

Documents for NRI and OCI buyers
DocumentNRI (Indian passport)OCI cardholder
PANRequiredRequired (or Form 97 where the lender accepts it)
PassportIndian passportForeign passport
Status proofVisa / residence permitOCI card
Overseas address proofYesYes
Bank statementsNRE/NRONRE/NRO
Power of attorneyIf not signing in personIf not signing in person

Why Surat appeals to NRI families

Many Surati families abroad — in the Gulf, the UK and North America — buy close to where relatives already live. Surat's international airport at Magdalla sits minutes from Vesu and Dumas Road, the metro's first section runs along VIP Road, and luxury projects such as Pramukh One Tapi on the Tapi riverside in Piplod and Avadh Classima near the airport offer large homes that need little management while you are away. We run video walk-throughs and can attend site visits with your family.

Sources

  1. RBI — FAQs on acquisition of immovable property by NRIs/OCIs (Id 1855) — 6 Apr 2023
  2. FEMA (Borrowing and Lending) Regulations, 2018
  3. ICICI Bank — NRI home loan — checked 29 Sep 2026
  4. HDFC Bank — NRI home loans — checked 29 Sep 2026
  5. Income Tax Department — Form 141 FAQs
  6. ICICI Bank — TDS on sale of property by NRI — 15 May 2026
  7. Indian Pay Calculator — NRI property TDS: no TAN from 1 Oct 2026 — 25 Sep 2026
  8. Gujarat Stamp Act, 1958 — sections 19, 31, 32

Last reviewed 29 Sep 2026 by the Surat Niwas research desk under our editorial policy. Tax and FEMA rules change; confirm with a chartered accountant before remitting. This guide is general information, not legal, tax or investment advice — confirm figures with the official portal, your bank or your advocate before you act.

Frequently asked questions

Can an NRI buy a flat in Surat without RBI permission?

Yes. NRIs and OCI cardholders can buy residential and commercial property in India without RBI approval. Agricultural land, plantation property and farmhouses are excluded.

Can an OCI cardholder buy property in Surat?

Yes. OCI cardholders are treated like NRIs for buying residential and commercial property.

Can I pay in foreign currency cash or travellers' cheques?

No. Payment must reach India through banking channels — an inward remittance or a debit to your NRE, FCNR(B) or NRO account.

How much can I repatriate when I sell?

Sale proceeds of up to two residential properties can be repatriated, subject to the RBI conditions. Balances in an NRO account can be remitted up to USD 1 million per financial year.

Can an NRI get a home loan in India?

Yes. Authorised dealer banks and housing finance companies lend to NRIs and OCIs to buy a home in India, at the same loan-to-value limits as residents — 75% for loans above ₹75 lakh.

How do NRIs repay a home loan EMI?

From an NRE or NRO account, by inward remittance, or from rent earned on the property. Some lenders, such as ICICI Bank, require EMIs from NRE/NRO accounts only.

What TDS applies when an NRI buys a new flat from a builder?

The buyer — even if an NRI — deducts 1% TDS when the price is ₹50 lakh or more and reports it on Form 141 (formerly Form 26QB). No TAN is needed.

I am buying a resale flat from an NRI seller. Do I need a TAN?

From 1 October 2026 (CBDT Notification 121/2026 of 22 Sep 2026, adding Schedule E to Form 141), the buyer can pay TDS on a purchase from an NRI seller through PAN-based Form 141 without a TAN. The TDS rate depends on the seller's capital gain, not 1%. The ₹50 lakh threshold does not apply to NRI sellers.

Is a power of attorney signed abroad valid in Gujarat?

Yes, if it is notarised and apostilled (or attested by the Indian consulate in non-Hague countries), then stamped in Gujarat within three months of arriving in the state, and registered where the property is located.

Which documents does an NRI need to buy a flat?

PAN, passport, visa or OCI card, overseas address proof, NRE/NRO bank statements, and income documents if taking a loan.

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