NRI Luxury Home in Mumbai 2026: FEMA Rules, Tax and Loans Guide

An NRI luxury home in Mumbai is one of the most common purchases we handle in 2026. An NRI buying a luxury home in Mumbai faces the same price list as a resident buyer, but a different set of rules. How you pay, which account you use, what tax you deduct and how you will eventually take money back out all depend on your NRI status. Get them right at the start and the purchase is simple. Get them wrong and you can face blocked funds or tax notices years later.

Demand from overseas Indians is a big part of Mumbai’s luxury market. Sea-facing projects such as Godrej Trilogy in Worli, priced at about Rs 1 to 1.2 lakh per sq ft, and the upcoming Godrej Bandra Bay draw a large share of their enquiries from NRIs in the Gulf, Singapore, the UK and the US.

We at Godrej Properties MMR work with NRI buyers every week. This guide covers the rules on what you can buy, how to pay, loans, tax and repatriation, as they stand in October 2026. It is general information, not tax advice. Confirm the details with a chartered accountant before you transact.

Under India’s foreign exchange rules (FEMA), NRIs and OCI cardholders can buy residential and commercial property in India without RBI approval. There is no limit on the number of homes you can buy. The main exclusions are agricultural land, plantation property and farmhouses, which need special permission.

That means every apartment we cover in Mumbai, from a ready home in Kandivali East to a sea-facing 4 BHK in Worli, is open to NRI buyers on the same terms as residents. Stamp duty, registration and GST are also the same.

Payment must come through normal banking channels. You cannot pay in foreign currency cash or traveller’s cheques. Which account you pay from matters later, because it decides how much of the sale money you can send abroad.

Keep a clean paper trail: remittance advices, bank statements and the developer’s receipts. You will need them when you sell.

Indian banks and housing finance companies lend to NRIs for property in India. For homes above Rs 75 lakh, RBI rules cap the loan at 75% of the property value, so on a Rs 18 crore home you would need at least Rs 4.5 crore of your own money plus taxes. Lenders typically ask for proof of overseas income, a valid visa or work permit, and an overseas credit history.

EMIs can be paid from your NRE or NRO account, or by remittance. Interest rates for NRIs are usually close to resident rates. Our note on the October 2026 repo rate change and EMIs covers where rates stand.

For most NRIs buying above Rs 10 crore, the loan is about cash flow, not affordability. Many borrow to keep foreign funds invested and repay early.

Three tax points matter for NRI owners:

• Buying from a developer: as the buyer, you deduct 1% TDS on payments for property worth Rs 50 lakh or more and deposit it against the seller’s PAN. You need a PAN card.
• Buying a resale from another NRI: TDS is much higher, at 12.5% plus surcharge and cess on long-term gains, unless the seller has a lower-deduction certificate.
• Rental income: tenants deduct TDS from rent paid to NRI landlords, usually at 30% plus surcharge and cess. You can claim back any excess when you file a return.
• Selling: gains on homes held over 24 months are taxed at 12.5% without indexation. Shorter holdings are taxed at your slab rate. The buyer deducts TDS on the full sale value unless you get a lower-deduction certificate first.
• Forms: repatriation needs a CA certificate and declaration. These were the 15CA/15CB forms, which some sources say are renumbered under the new Income-tax Act from April 2026 [VERIFY: confirm current form numbers].

Apply for a lower-deduction certificate before you sell. It can cut TDS from a percentage of the whole sale price to the tax actually due on your gain.

1. Get a PAN and open NRE and NRO accounts with an Indian bank.
2. Shortlist and check RERA. Confirm the project’s MahaRERA number and possession date online.
3. Visit, or appoint a representative. If you can’t travel, give a trusted person a specific power of attorney, notarised or apostilled abroad and stamped in India.
4. Book and pay from the right account. Use NRE, FCNR or remittance if you want repatriation rights later.
5. Deduct and deposit TDS on each payment, and file the TDS return.
6. Register the agreement and pay stamp duty: 6% in Mumbai (5% for a sole woman buyer) plus Rs 30,000 registration.
7. Keep every document for the eventual sale and repatriation.

NRI buyers usually want a registered timeline, a strong brand and a home that is easy to manage from abroad. Godrej Trilogy in Worli meets all three, with Phase 1 RERA-registered since October 2025. Our Godrej Trilogy Worli guide covers prices and possession. NRIs who want a Bandra address can register interest in Godrej Bandra Bay, keeping any payment refundable until it is registered. For rental income, a ready home such as Godrej The Trees in Vikhroli earns from day one.

Buying is a one-time task. Owning an NRI luxury home in Mumbai from abroad is ongoing, and planning for it keeps the property in good shape and its income steady.

• Property management: many owners appoint a professional manager to handle tenants, repairs and society matters, usually for a fee of 5 to 10% of the rent [VERIFY: not sourced]
• Society and maintenance: set up standing instructions from your NRO account for maintenance and property tax
• Tenancy: use a registered leave-and-licence agreement, and make sure your tenant deducts and deposits TDS on rent
• Tax filing: file an Indian return each year you have rental income or a sale, to claim back excess TDS
• Power of attorney: keep a specific, limited power of attorney with a trusted person for emergencies

Under-construction homes need less management until possession, but track construction updates on the MahaRERA portal every quarter. At handover, arrange an independent snag inspection if you can’t attend yourself.

Q: Can NRIs buy property in Mumbai without RBI permission?

Yes. NRIs and OCI cardholders can buy residential and commercial property in India without RBI approval, and there is no limit on the number of homes. Agricultural land, plantations and farmhouses are excluded.

Q: Do NRIs pay higher stamp duty in Mumbai?

No. Stamp duty is the same for NRIs and residents: 6% in Mumbai, or 5% for a sole woman buyer, plus registration of Rs 30,000 for homes above Rs 30 lakh.

Q: Can an NRI get a home loan for a Mumbai flat?

Yes. Indian banks lend to NRIs. For homes above Rs 75 lakh, the loan is capped at 75% of the property value. EMIs can be paid from NRE or NRO accounts.

Q: How much tax does an NRI pay on selling property in India?

Gains on homes held over 24 months are taxed at 12.5% plus surcharge and cess, without indexation. The buyer deducts TDS on the sale value unless you obtain a lower-deduction certificate.

Q: Can NRIs take sale money back abroad?

Yes. Proceeds from up to two residential properties bought with foreign funds can be repatriated. Other funds in an NRO account can be sent abroad up to USD 1 million per financial year, after tax and the required CA certification.

For an NRI luxury home in Mumbai, the purchase is straightforward if the paperwork is planned from day one. Pay through NRE, FCNR or remittance to keep repatriation rights, deduct TDS correctly, and keep every record for the eventual sale. Choose a RERA-registered project so the timeline is enforceable while you are abroad.

Our team regularly handles video walkthroughs and remote paperwork for NRI buyers. Get in touch to shortlist projects and arrange a virtual site visit.