Many of the people researching Chennai homes on Property Point are not in Chennai. They are in Riyadh, Singapore, Helsinki, Dubai and beyond, comparing a 3 BHK in Perambur with a villa in Siruseri at midnight local time. The property questions are the same as any buyer's. The process questions are different: how to sign without flying in, which account to pay from, how tax is deducted, and how money comes back out one day.

This guide answers those questions with reference to the Reserve Bank of India's rules, the Income-tax Act, 2025 (which replaced the 1961 Act from 1 April 2026) and Tamil Nadu practice. It is general information, not tax or legal advice; your chartered accountant and advocate should confirm the details for your situation.

Step 1: Confirm what you are allowed to buy

Under FEMA, an NRI or OCI cardholder can buy any immovable property in India other than agricultural land, plantation property or a farm house, without prior RBI approval (per the RBI's FAQ on acquisition of immovable property). Residential apartments, villas and commercial property are all permitted, and there is no cap on the number of homes you can buy.

In Chennai this matters mainly on the periphery. Some villa plots and weekend homes beyond ECR or in the outer OMR belt sit on land that is still classified as agricultural. Insist on seeing the land classification, the patta and the approved layout (CMDA or DTCP) before you pay anything.

Step 2: Fund it the right way: NRE, NRO or FCNR

  • Permitted channels: payment must come through normal banking channels, either as an inward remittance from abroad or by debit to your NRE, FCNR(B) or NRO account. Traveller's cheques and foreign currency notes are not permitted (per RBI).
  • NRE account: funded with foreign earnings; balances are freely repatriable. Paying from NRE keeps a clean trail for repatriating the sale proceeds later.
  • NRO account: holds India-sourced income such as rent, dividends or the sale proceeds of older assets. Use it for rupee income and for paying from Indian-sourced funds.
  • Rent: rent from a Chennai flat should be credited to your NRO account. Your tenant is required to withhold tax on rent paid to a non-resident landlord under the non-resident TDS provisions; ask your CA to factor any Double Taxation Avoidance Agreement benefit available in your country of residence.

Step 3: Sign from abroad with a properly executed power of attorney

Most NRIs appoint a trusted relative in Chennai under a specific power of attorney to sign the sale agreement, attend registration and, if needed, handle the home loan disbursement. Lenders typically require a PoA holder in India as a point of contact for the loan (per Morningstar India's NRI home loan checklist).

If you sign the PoA abroad, it must be notarised and then either apostilled (in countries party to the Hague Apostille Convention) or attested at the Indian embassy or consulate. On arrival in India it must be adjudicated and stamped within three months, and a PoA dealing with immovable property should then be registered as required in Tamil Nadu.

  • Saudi Arabia (Riyadh, Jeddah): the Apostille Convention entered into force for Saudi Arabia on 7 December 2022 (per HCCH records reported by Conflict of Laws).
  • Singapore: the Convention entered into force for Singapore on 16 September 2021 (per Singapore's Ministry of Law).
  • Finland and most of the EU: long-standing contracting parties to the Convention (per the HCCH status table).
  • UAE and other non-member states: use consular attestation at the Indian mission instead of an apostille. Check the current HCCH status table before you sign.

Step 4: Home loans for NRIs

Indian banks and housing finance companies lend to NRIs against Chennai property. Rates move with the policy cycle: the RBI's repo rate stood at 5.25% heading into the October 2026 policy meeting (per ClearTax's repo tracker). Aggregator Paisabazaar lists SBI's NRI home loan rates in a 7.50-8.70% band, with tenures up to 30 years; confirm the current card rate directly with the bank.

Expect to provide your passport and visa, overseas employment contract or business proof, recent salary slips and overseas bank statements, a credit report from your country of residence where available, and the PoA. EMIs are commonly paid from an NRE or NRO account or by inward remittance.

Step 5: TDS when you buy: the new Section 393

From 1 April 2026, TDS provisions moved from the old sections 194-IA and 195 into Section 393 of the Income-tax Act, 2025. The rules buyers need to know:

  • Buying from a resident seller (most new launches): deduct 1% TDS on the consideration if the property value is ₹50 lakh or more. This was section 194-IA and is now Section 393(1); the 26QB-style challan-cum-statement continues (per TDSMan, May 2026). This applies even if you, the buyer, are an NRI.
  • Buying from an NRI seller (common in resale): deduct tax under Section 393(2) at the rates in force for capital gains, not a flat 1% (per TaxHeal). The seller can apply for a lower or nil deduction certificate using the new Form 128, which replaced Form 13.
  • TAN relief: the Union Budget 2026 removed the need for resident individual and HUF buyers to obtain a TAN when buying from an NRI, allowing PAN-based deposit instead (per Outlook Money, February 2026). Reports cite an effective date of 1 October 2026; confirm applicability with your CA for transactions around that date.
  • Remittance forms: Form 145 and Form 146 have replaced Forms 15CA and 15CB for payments to non-residents (per TaxHeal).

Step 6: Tax and repatriation when you eventually sell

  • Long-term capital gains on property held more than two years are taxed at 12.5% without indexation for transfers from 23 July 2024 (per Quicko and SBNRI). Short-term gains are taxed at slab rates.
  • TDS on an NRI's sale is levied on the gains at the applicable rate plus surcharge and 4% cess. On the 12.5% rate, that works out to about 13% where no surcharge applies, about 14.3% with a 10% surcharge and about 14.95% with the 15% surcharge cap (arithmetic based on SBNRI's surcharge bands). A lower deduction certificate can align TDS with your actual liability.
  • Repatriation of sale proceeds of residential property bought with foreign exchange is restricted to two such properties (per the RBI's guidelines as summarised by ICICI Bank and Holistic Investment).
  • Funds in your NRO account, including sale proceeds of property bought from rupee sources, can be repatriated up to USD 1 million per financial year after taxes (per ICICI Bank's NRI guidance).

Step 7: Chennai-specific due diligence

  • Patta, chitta and the encumbrance certificate (EC) for the land, ideally covering 30 years.
  • CMDA or DTCP approval of the building plan, and TNRERA registration for new projects; check quarterly progress updates on the TNRERA portal.
  • UDS (undivided share of land) specified in the sale deed, since in Tamil Nadu the land share and the construction agreement are often separate documents.
  • Stamp duty of 7% on the higher of the deed value and the guideline value, plus registration fees; confirm the current schedule for your deed type with the sub-registrar.
  • For ready homes: the completion or occupancy certificate, and transfer of the electricity and water connections.

Where NRIs are looking in Chennai, and why

The micro-markets our overseas visitors browse most map closely to the city's real demand. Knight Frank's H1 2026 report shows South Chennai, led by the OMR corridor, took 57% of the city's sales, with Perambur in the north recording the sharpest price rise at 35% year-on-year. Overseas interest on our site spans large family homes in the north and west (Perambur, Valasaravakkam), OMR-south townships in Padur and Pallavaram-side communities, and villas in Siruseri that can be let until the owner returns.

Whatever the location, the NRI premium is process discipline: a clean PoA, a clean money trail and a clean title. Get those right and the property decision becomes the easy part.