NRI Home-Buying Guide for Hitec City 2026: FEMA, Loans & Tax
For IT professionals settled in the US, UK, Singapore or the UAE, Hitec City is the address that makes sense, familiar from their years working there before moving abroad, close to family, and sitting atop a long-term uptrend in residential prices. Buying here as a Non-Resident Indian or OCI card holder is entirely legal and increasingly common, but the paperwork cuts differently from a resident purchase. This guide covers the five things that matter most: your FEMA entitlement, how to fund the deal, whether you can get an Indian home loan, what TDS you are responsible for, and how to get your money back out when you eventually sell.
All regulatory positions below are based on publicly available FEMA rules, RBI guidelines and Income Tax provisions as understood in 2026. Tax and exchange control rules change, verify the current position with a CA and a FEMA-specialist lawyer before you transact.
Can NRIs and OCI Card Holders Buy Residential Property in India?
Yes, and without needing to ask the Reserve Bank of India for permission first. Under the Foreign Exchange Management (Non-Debt Instruments) Rules 2019, the current FEMA framework for property, the following categories of persons may acquire residential or commercial property in India on a non-repatriation or repatriation basis:
| Category | May buy residential property? | May buy agricultural land / farmhouse? |
|---|---|---|
| NRI (Indian citizen resident abroad) | Yes, no RBI permission needed | No |
| OCI card holder | Yes, on par with NRI since 2015 | No |
| PIO card holder | PIO cards subsumed into OCI since 2015, apply as OCI | No |
| Foreign national of non-Indian origin | Only on non-repatriation basis with RBI approval | No |
The restriction to note: neither NRIs nor OCIs may buy agricultural land, plantation property or a farmhouse in India, those require specific RBI approval and are rarely granted. A standard residential apartment in Hitec City falls cleanly within what the rules permit.
Which Account Funds the Purchase?
Funds for a property purchase in India must flow through one of three RBI-recognised NRI account types. The key difference between them is not the interest rate but what you can do with the money when you want to take it back out of India:
| Account type | Currency held | Source of funds | Repatriation of principal |
|---|---|---|---|
| NRE (Non-Resident External) | INR (converted from foreign currency) | Foreign earnings remitted to India | Fully repatriable, principal and interest |
| NRO (Non-Resident Ordinary) | INR | Indian income (rent, interest, pension, dividends) | Up to USD 1 million per financial year (with CA certificate + Forms 15CA/15CB) |
| FCNR (Foreign Currency NR) | Foreign currency (USD, GBP, etc.) | Foreign earnings | Fully repatriable (converted to INR at time of use) |
Pay from NRE funds wherever possible. NRE-funded purchase proceeds are freely repatriable when you sell, while NRO-funded proceeds face a USD 1 million annual cap on the way out. If your purchase mixes both sources, track them carefully, the bank will want a clear audit trail at the time of sale.
All three accounts can legally be used to pay the developer or the seller. The payment must go directly from your account to the seller, cash payments are prohibited for property transactions above ₹20,000 under the Income Tax Act.
NRI Home Loans from Indian Banks
Most major Indian banks and housing finance companies extend home loans to NRIs, and the terms are broadly similar to resident loans. The RBI permits a loan-to-value ratio of up to 80% of the property value (or 75% for loans above ₹75 lakh), so you need at least 20%–25% of the purchase price plus stamp duty, registration and GST as your own contribution. Key terms to compare:
| Parameter | Typical NRI home loan position (2026)* |
|---|---|
| Loan-to-value (LTV) | Up to 80% of property value (75% for loans > ₹75 lakh) |
| Indicative floating rate | ~8.5%–10.5% per annum (varies by lender and credit profile) |
| Maximum tenure | Typically 20–25 years (some lenders up to 30 years) |
| Loan currency | Indian Rupees (INR) |
| EMI serviced from | NRE or NRO account; direct overseas remittance also allowed |
| Lenders offering NRI products | SBI, HDFC, ICICI, Axis, Bank of Baroda, IDFC First (check individual bank eligibility criteria) |
*Rates and LTV are indicative for 2026, verify the current rate sheet and eligibility criteria directly with the lender before applying.
NRI home loan applications typically require your passport, visa and overseas employment or income proof in addition to the documents asked of a resident buyer. The loan is sanctioned in India, and the bank will disburse directly to the developer based on the payment schedule in your agreement of sale, you do not need to be in India for each tranche.
TDS Rules, Who Deducts How Much?
TDS (Tax Deducted at Source) is where NRI purchases differ most sharply from resident ones. The rules change depending on whether you are buying from a resident seller or from another NRI:
| Situation | TDS rate | Legal basis | Buyer must |
|---|---|---|---|
| Buying from resident seller (sale price ≥ ₹50 lakh) | 1% of sale price | Section 194-IA | File Form 26QB online within 30 days; issue Form 16B to seller; no TAN required |
| Buying from NRI seller, property held > 2 years (long-term) | 20% + applicable surcharge + 4% health and education cess | Section 195 | Obtain a TAN; deduct before payment; deposit via Form 27Q; issue Form 27A to seller |
| Buying from NRI seller, property held ≤ 2 years (short-term) | At seller's applicable income-tax slab rate (up to 30%) + surcharge + cess | Section 195 | Same as above; NRI seller may apply to Assessing Officer for lower deduction certificate under Section 197 |
The higher TDS on NRI-to-NRI transactions often surprises buyers. If the seller holds a lower deduction certificate issued by their Assessing Officer under Section 197, you deduct at the certified rate instead. Always ask the seller for this certificate before closing; ignoring it and deducting at the wrong rate creates liability for both parties.
Power of Attorney for NRI Buyers
Many NRIs cannot take time off or afford the travel to attend registration in India. A properly executed Power of Attorney (PoA) lets a trusted resident, a family member, a lawyer, sign and register the sale deed on your behalf. The PoA must be:
| Step | What you do |
|---|---|
| 1. Draft the PoA | Have a lawyer draft a specific PoA naming the property address, the authorised acts (sign sale deed, pay stamp duty, accept possession) and the PoA holder’s details |
| 2. Notarise abroad | Sign the PoA in front of a Notary Public in the country where you live |
| 3. Attestation by Indian mission | Get the notarised PoA attested by the Indian Embassy or Consulate in your country (for Hague Convention countries, an Apostille stamp on the Notary’s seal may be accepted in lieu) |
| 4. Adjudication in India | The PoA holder takes the attested original to the Sub-Registrar Office (SRO) in Hyderabad for adjudication and stamp duty payment; the SRO endorses it as valid |
| 5. Execute the sale deed | The PoA holder executes the sale deed at the SRO on the scheduled registration date |
A general PoA (one that says “do anything on my behalf”) is viewed with suspicion by most SROs, keep it specific and limited to this transaction. Also note that if you do visit India, attending registration personally is always cleaner than a PoA route; you can also execute the PoA in India before a sub-registrar, which requires no foreign attestation.
Repatriation When You Eventually Sell
FEMA allows NRIs to repatriate the sale proceeds of a residential property, subject to a few rules:
- Proceeds of sale of not more than two residential properties may be repatriated. If you hold a third or more, the proceeds of the additional properties must be credited to an NRO account and are subject to the annual cap.
- Repatriation from an NRO account is capped at USD 1 million per financial year (April to March) across all remittances from that account. You will need a Chartered Accountant to certify that taxes have been paid (Form 15CB) and you must file Form 15CA on the Income Tax portal before the bank remits.
- Proceeds held in an NRE account (because you funded the purchase through NRE) are fully repatriable without the USD 1 million cap, this is the stronger reason to fund the purchase from NRE wherever possible.
- Capital gains tax applies to the NRI seller just as to a resident: 20% with indexation on long-term gains (held > 2 years), or at the applicable slab rate on short-term gains. The buyer will already have deducted TDS at source, which the NRI seller claims as credit when filing their Indian return.
If the sale proceeds in a single financial year exceed USD 1 million and all of it is in NRO, you can carry the balance over to the next year, the cap resets on 1 April. Plan the timing of your sale accordingly if your property value has appreciated significantly.
Frequently Asked Questions
1. Can NRIs and OCI card holders legally buy a residential apartment in India?
Yes, under FEMA 2019 rules, NRIs and OCI card holders may buy residential property in India without RBI permission. Only agricultural land, plantation property and farmhouses are restricted.
2. Which bank accounts can an NRI use to fund a property purchase in India?
NRIs can pay from NRE, NRO or FCNR accounts. NRE funds are fully repatriable; NRO funds are repatriable up to USD 1 million per financial year with CA certificate and Forms 15CA/15CB.
3. What TDS does an NRI buyer have to deduct at the time of purchase?
Buying from a resident seller (price ≥ ₹50 lakh): 1% TDS under Sec 194-IA. Buying from an NRI seller: 20%+ surcharge and cess for long-term gains, or slab rate for short-term, under Sec 195, the buyer also needs a TAN.
4. Can an NRI get a home loan from an Indian bank for a Hitec City apartment?
Yes, most Indian banks offer NRI home loans up to 80% LTV, disbursed in rupees, at indicative rates of ~8.5–10.5%* p.a. in 2026; EMIs can be serviced from NRE or NRO funds.
5. How does an NRI repatriate sale proceeds when selling their Hyderabad property?
NRE-funded proceeds are freely repatriable. NRO-funded proceeds can be repatriated up to USD 1 million per year with CA certificate and Forms 15CA/15CB. FEMA permits repatriation from a maximum of two residential properties.
6. What documents does an NRI need to buy and register a property in Hyderabad?
Valid passport or OCI card, PAN card, NRE/NRO account statements, and a sale agreement copy. If not attending registration in person, add a notarised and Indian-consulate-attested Power of Attorney.
Conclusion
Buying a home in Hitec City as an NRI or OCI card holder is straightforward in principle: FEMA permits it outright for residential property, Indian banks will lend against it, and the Telangana registration process works the same as it does for a resident, with or without a Power of Attorney. The parts that need care are the account funding trail (NRE is cleaner than NRO for repatriation), the TDS rules when the seller is also an NRI, and the USD 1 million annual cap if your sale proceeds eventually land in NRO. Get those three right, confirm the project on the Telangana RERA portal, and work with a CA experienced in NRI property transactions from the outset. Prestige Hitec City is a TS-RERA registered project by Prestige Group offering 2, 3 and 4 BHK homes in the heart of the IT core, if you are an NRI weighing the purchase, the price list and registration details are a site visit or a call away.
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