10 Common Mistakes US Investors Make When Buying Indian Property

NRI property investment mistakes: 10 pitfalls US investors face – A complete guide

Discover the 10 most common NRI property investment mistakes US investors make when buying Indian real estate. Learn about FEMA, RERA, DTAA, repatriation rules, capital gains tax, and more to avoid costly legal and financial pitfalls.

Investing in Indian real estate can be lucrative for NRIs, OCIs and other Americans, but it also comes with unique challenges. Many US investors dive in excited about strong growth, only to overlook critical regulations and processes. In this in-depth guide, we explore 10 Common Mistakes US Investors Make When Buying Indian Property, along with solutions to help you invest in Indian real estate from the US smartly and safely. We’ll cover key laws like FEMA and RERA, taxation nuances under the India-US DTAA, repatriation rules, title due diligence, tenant management, builder frauds and more. Each mistake section ends with a practical checklist. By understanding these pitfalls, you can navigate Indian property deals with confidence.

1. Misunderstanding FEMA and Land Use Restrictions

One of the biggest mistakes foreigners buying Indian property (including NRIs and OCIs) make is ignoring FEMA (Foreign Exchange Management Act) rules. Under FEMA, NRIs are allowed to buy residential or commercial property in India, but agricultural land, plantation property or farmhouses are generally prohibited unless specific RBI permission is obtained. For example, an NRI may spot a lucrative price on farmland or a rustic farm house, but purchasing such land without RBI clearance is illegal and can nullify the sale deed. Similarly, OCIs/PIOs have the same restrictions as NRIs under FEMA.

Legal Tip: Always verify the land classification (residential, agricultural, etc.) before signing any agreement. Only urban plots and built-up property are normally allowed for NRIs. If in doubt, consult FEMA guidelines or a qualified lawyer.

Table: FEMA – Allowed vs. Prohibited Purchases

Property TypeNRI/OCI Purchase Allowed?Residential (apartments)Yes (No restriction)Commercial propertyYes (Office/shop)Agricultural land/farmNo (Prohibited)Plantation / farmhouseNo (Prohibited)Inherited propertyYes (Allowed to inherit agricultural land, but cannot buy it directly)

Solutions: Before investing, check with the local Sub-Registrar if the land is zoned for agriculture or forestry. If you’re an NRI, stick to clearly legal purchases like city apartments, shops or commercial units. If you must purchase restricted land (e.g., inherited farmland), be prepared to apply to the Reserve Bank of India (RBI) for permission – a time-consuming process.

• ✔️ Verify land type: urban vs. agricultural.

• ✔️ Confirm seller’s identity (individual, company).

• ✔️ Consult FEMA guidelines or a legal expert on foreign investment rules.

• ✔️ If purchasing via Power of Attorney (POA), ensure your POA explicitly authorizes foreign real estate deals.

Case Study: John, an NRI living in California, found a scenic farmhouse near Mumbai for a bargain. He signed on it without checking FEMA. Later, RBI flagged the purchase as illegal since he had effectively bought agricultural land. John had to cancel the sale and forfeit his deposit.

Key Takeaway: Under FEMA, NRIs/foreigners can buy only residential or commercial property – never agricultural or plantation land – without special permission. Misidentifying the land use can cost you your investment.

2. Overlooking RERA and Project Registration

Many US investors fall for off-plan deals or pre-construction sales without confirming the project’s legal status under RERA (Real Estate Regulation Act). RERA, in effect since 2016, requires most large housing projects in India to register with the state regulatory authority before marketing. A RERA-registered project must maintain an escrow account (to secure your funds), adhere to declared timelines, and follow standardized disclosure rules. Buying from a non-RERA builder, by contrast, offers no protection or recourse if the project stalls or the builder misuses funds.

Insight: Always check the RERA website of the state (e.g., MahaRERA, RERA Gujarat) for the project name. A listing means some accountability. If it’s not listed, be extremely cautious.

Table: RERA vs. Non-RERA Project Comparison

FeatureRERA-Registered ProjectNon-RERA ProjectEscrow of fundsMandatory (usually 70-75% of funds in escrow)Not mandated (funds at risk)Project delaysPenalties/interest for delay (as per RERA)Unpredictable, no formal penaltiesComplaints & redressalState RERA authority, fast resolutionConsumer courts (slow, expensive)Project details disclosureDetailed (plan, timeline, cost)Minimal, at seller’s discretionRefund to buyerRegulated (RERA can cancel and refund)Depends on builder’s policy

Solutions: Before paying a dime, ask the builder/developer for the RERA registration number and verify it online. Look up the project’s completion date, approvals and any pending litigation via RERA. If the project is unregistered, insist on strict clauses (like escrow and delay penalties) in the sale agreement.

• ✔️ Confirm Project RERA ID on the official portal.

• ✔️ Only purchase from developers with strong track records and RERA compliance.

• ✔️ Include deadlines and penalties in contract if RERA protections aren’t available.

• ✔️ Use standard RERA contracts (many states provide templates).

Case Study: A Houston-based investor booked a Bengaluru flat off-plan. It was later revealed the project wasn’t RERA-registered. When construction lagged by 3 years, his options were limited to consumer court fights instead of quick RERA intervention.

Key Takeaway: Don’t assume every project is above board. Checking RERA registration is a must – it distinguishes a regulated project from an unregulated gamble.

3. Neglecting Tax Planning: DTAA and Capital Gains

A huge pitfall is ignoring the tax consequences of an Indian property transaction. Many US investors mistakenly think foreign income isn’t taxed in India or vice versa. In reality, selling property in India triggers Indian capital gains tax (20% for long-term, 30% for short-term gains) plus surcharge and cess. At the same time, the US taxes its citizens on global income. Thankfully, the India-US Double Taxation Avoidance Agreement (DTAA) exists, but you must claim credits properly to avoid paying twice.

Pro Advice: Use Form 67 to claim foreign tax credit in India and IRS Form 1116 (in the US) for taxes paid abroad. This ensures you’re not unfairly taxed on the same profit in both countries.

Indian tax rules changed recently: a property held less than 2 years (from the date of purchase) is short-term and taxed at the full slab rate (up to 30%). Beyond 2 years, it’s long-term with indexation benefits (which can greatly reduce tax). Failing to wait for long-term status or not filing correctly can inflate your tax bill.

Table: Capital Gains on Property (FY2025-26)

Holding PeriodTypeTax Rate (approx.)Exemptions (India)≤ 2 yearsShort-Term30% + surchargeNone (just standard deductions)> 2 yearsLong-Term20% (with indexation)Section 54/54F (if reinvested in new property)

Solutions: Plan your holding period and reinvestment. For instance, under Section 54 of the Income Tax Act, if you sell one house and buy another within certain timelines, you may fully shelter long-term gains from tax. Also, keep thorough records (purchase cost, improvement costs, taxes paid) to compute indexed gains.

• ✔️ Consult a tax advisor familiar with US-India DTAA rules.

• ✔️ Save proof of original investment (bank statements, sale deeds) to claim indexation.

• ✔️ If renting out property, declare rental income in both countries as required.

• ✔️ File your Indian ITR (Form ITR-2/3) even if you have no taxable income, to establish compliance.

Case Study: Maria, an NRI in New York, sold a Mumbai flat after 3 years. She neglected to invest the gains and didn’t use the DTAA credit properly. As a result, she paid full Indian LTCG tax and again reported the sale on her US taxes without offset, effectively double-taxing her profit.

Key Takeaway: Don’t treat taxes as an afterthought. Understand both Indian capital gains rules and how the DTAA credits work. Proper planning and documentation can save tens of thousands in tax.

4. Ignoring Repatriation Rules for Funds

After selling property or collecting rent in India, NRIs must follow FEMA’s repatriation rules to bring money back to the US. A common mistake is assuming you can transfer all proceeds freely. In reality, only up to $1 million USD per financial year (April–March) can be remitted from your NRO (Non-Resident Ordinary) account, subject to conditions. Moreover, proof of the source of funds (e.g., sale deed, past bank statements) and payment of all applicable Indian taxes are mandatory for RBI approval of repatriation.

Important: Maintain Form A-2 receipts (issued by your bank for each foreign exchange transaction) and a copy of the sale deed. Without these, RBI may deny repatriation requests.

Another trap is mixing up NRE vs. NRO accounts. NRIs often deposit rental or sale income into the wrong account. Remember: NRE accounts are for repatriable foreign earnings (interest and principal can be remitted), but property income/sale proceeds should go into NRO accounts (repatriable subject to limits). If you mistakenly use an NRE account for rental income, it might raise compliance issues since that income was earned in India.

Table: NRE vs NRO Accounts for NRIs

FeatureNRE Account (Non-Resident External)NRO Account (Non-Resident Ordinary)Funding sourceForeign income (USD/EUR etc.)Indian income (rent, dividends)Repatriation of principalFull & freeUp to $1M/year (with docs)Interest income (INR)Tax-freeTaxable @ 30% + (TCS applies)Joint holdersOnly with NRI/PIOWith NRI/PIO or Resident (with conditions)Account usageEasy repatriation, forex remittancesCollection of Indian earnings

Solutions: Open both NRE and NRO accounts. Route sale proceeds and rental income into your NRO account and follow the mandatory repatriation process (Form 15CA/15CB, FEMA declaration). Always declare the source of funds (purchase receipts, previous transactions). If you plan to repatriate the full USD1M limit, keep track of cumulative transfers.

• ✔️ Use NRO account for collecting rent or sale proceeds; use NRE only for foreign income.

• ✔️ Obtain CA-certified Form 15CB and file Form 15CA for repatriation above ₹7 lakh per transaction.

• ✔️ Keep all payment receipts (repatriation slips) as proof of compliance.

• ✔️ Limit repatriation to ₹1 crore per year (as per current FEMA limits), or apply to RBI if needed beyond that.

Case Study: An American investor in Texas sold his Delhi apartment but did not save the sale receipts. When trying to remit $200,000, his bank blocked the transfer pending proof of the property purchase. Without the original documents, his repatriation was delayed for months.

Key Takeaway: Understand that repatriating funds has caps and paperwork. Track all Indian account statements, FEMA documents and ensure your transactions comply with RBI limits – otherwise your funds can get stuck.

5. Skipping Thorough Title and Due Diligence

Trusting a too-good-to-be-true property deal without checking the fine print is a recipe for disaster. US investors often underestimate the complexity of Indian land/title records. Unlike some countries with centralized title registries, India relies on local stamp, revenue and municipal records. Common mistakes include not verifying the chain of ownership, ignoring pending litigation, or overlooking missing approvals (like building plan or occupancy certificate).

• Title Search: Always hire a qualified local lawyer or consultant to perform a title search. They will obtain the Encumbrance Certificate (EC) from the sub-registrar office for at least 15–30 years, ensuring the property has no mortgages or liens.

• Owner Verification: Confirm the seller’s identity and inheritance documents. For example, if the property belonged to multiple heirs, ensure all co-owners have signed the sale deed.

• Approvals: Check municipal approvals. For a new flat, ensure the builder has a valid Occupancy Certificate (OC) and Building Approval Plan; for resale, verify any pending dues (water, electricity, property tax).

Due Diligence Checklist: Review the sale deed, encumbrance certificate, latest tax receipts, no-objection certificates (if any), and check for court cases involving the property or builder.

Table: Due Diligence Actions

CheckpointWhy It MattersEncumbrance CertificateConfirms property is debt-free (no mortgage)Sale Deed HistoryVerifies legitimate chain of past ownersLitigation SearchEnsures no pending disputes in courtOccupancy CertificateConfirms property construction is approvedMunicipal DuesAvoid surprise tax or utility bill liabilities

Solutions: Never proceed on faith alone. Visit the property if possible, or engage a reputable local agent. Verify titles through government records. For high-value deals, title insurance (though not common in India) or escrow services can add a safety layer. Always pay the maximum stamp duty declared – undervaluing to save tax can invalidate your title later.

• ✔️ Use registered sale deed at a sub-registrar.

• ✔️ Pay all due stamp duty and registration fees as per market value to ensure legal title.

• ✔️ Get No Objection Certificates (NOCs) from relevant authorities (e.g., if building near airport or highway).

• ✔️ Inheritances/gifts: If property was inherited, ensure the succession certificate or gift deed is on file.

Case Study: Priya, an NRI from London, bought an old Mumbai bungalow. Later, she discovered part of the land was actually under a government road widening project (which the seller knew about). Without proper land-survey and government approvals, she lost a chunk of the property and her investment value took a hit.

Key Takeaway: Proper title due diligence is non-negotiable. It may seem tedious, but uncovering issues before buying can save years of legal battles and large losses.

6. Mismanaging Tenancy and Rental Laws

If you plan to keep the property rented or purchase an occupied property, Indian tenancy laws can catch you off-guard. Tenants have strong rights under various Rent Control Acts (which vary by state) – some allow tenants to renew leases indefinitely at modest rent increases. Key mistakes include:

• Unregistered leases: In many Indian states, long-term leases must be registered. An unregistered agreement may not hold up if the tenant disputes terms.

• Rent declaration: NRIs sometimes forget to declare rental income on their Indian tax returns, risking penalties. They may also fail to deduct TDS (Tenant Deducted Source) on rent, which leads to compliance issues.

• Eviction challenges: If an NRI buys a property with tenants in place, evicting them (even to renovate or sell) can be legally complex and lengthy. For example, some Rent Acts allow only limited reasons (like non-payment of rent) for eviction.

Rent Reminder: Even if you live in the US, rental income in India is taxable there. You must maintain rent receipts, file ITR2/3 with Schedule Income-from-House Property, and pay any due tax (30% flat on rental income after deductions).

Table: Landlord vs Tenant Obligations

AspectLandlord ResponsibilityTenant RightLease AgreementDraft and register (if required)Obtain copy; legal renewal rightsMaintenanceMajor structural/amenity upkeepMinor repairs (varies by agreement)Rent IncreaseOnly after mutually agreed or per lawLimit on how much and how oftenProperty AlterationsTenant needs permission for major changesCan modify within scope of leaseDispute ResolutionMust follow Rent Control Appellate processTenant can challenge eviction, etc.

Solutions: If you plan to rent out the property, always execute a written lease (preferably registered) with clear terms (rent amount, period, maintenance clause). If buying occupied, audit the lease conditions and try to negotiate an exit. Factor in a professional property manager – they can handle rent collection, tenant vetting, and compliance with local landlord-tenant regulations.

• ✔️ Familiarize yourself with the local Rent Control Act (e.g., Delhi Rent Control Act, Maharashtra Rent Control Act).

• ✔️ Register long-term lease agreements (necessary in states like Maharashtra, Karnataka).

• ✔️ Calculate rental yield and tax (deductions include property tax, standard 30% for maintenance).

• ✔️ Use rental platforms or agents that specialize in NRI clients for better tenant management.

Case Study: George, an NRI from Chicago, bought a Gurgaon flat that was already rented on a verbal agreement. When the tenant refused to vacate, George faced a two-year legal battle under the state rent law, delaying his own family’s move-in and costing him both legal fees and lost rents.

Key Takeaway: Treat rental management as seriously as the purchase itself. Handle leases by the book, pay taxes on rent, and don’t underestimate your tenants’ legal rights.

7. Falling for Builder Frauds and Delays

Builder frauds and project delays are nightmares for any buyer. Some developers overbook projects, divert funds, or simply fail to deliver on promises. US investors, especially those buying sight-unseen, are vulnerable to several traps:

• Unrealistic promises: If a builder guarantees extremely high returns or gives implausible delivery timelines, be cautious. No one can legally guarantee market appreciation or rental yields.

• Off-plan payment without safeguards: Handing large sums in pre-launch or early stage without escrow (if project is unregistered) means you’re trusting the developer’s intent entirely.

• Phantom developers: Occasionally, new builders launch projects under multiple names to hide past delays. Always research the company’s corporate history.

Safety Tip: Verify the developer’s background. Builders with a record of completed projects and RERA compliance are safer bets. A quick online search (e.g., news of litigation or RERA cancellations) can reveal red flags.

Table: Project Vetting Checklist

CheckWhat to Look ForBuilder Track RecordCompleted projects of similar scale and qualityProject FinancingRERA escrow status or bank loans on projectGovernment ApprovalsValid building plan, occupancy certificate, AAI/NHAI NOC if applicableCustomer ReviewsTestimonials or news about past projectsFinancial HealthPromoters’ other businesses to assess overall debt

Solutions: Do not rely solely on marketing materials. Insist on an Independent Inspection or visit construction site if possible. Even if abroad, use tech (video walk-throughs) or hire a trusted local attorney/agency to verify project status periodically. Contracts should include penalty clauses if deadlines slip – and get construction milestones in writing.

• ✔️ Check if the project has a Project ID on the RERA portal; if yes, see if any warnings/complaints are listed.

• ✔️ Ask the developer for the MahaRERA/Udaipur/Dubai approvals, architect/engineer credentials, and funding sources.

• ✔️ Avoid full upfront payment; use milestone-based payments to reduce risk.

• ✔️ Keep record of communications and promises in writing (emails, official minutes) to use in disputes.

Case Study: A Los Angeles investor booked a luxury flat in Pune from a flashy new developer. The promised handover date passed by two years. Eventually, the developer declared bankruptcy, leaving the unit just half-built. Since the project was unregistered, the investor had to fight in civil court (no RERA fallback) and lost money to legal fees.

Key Takeaway: Even with a buzzing real estate market, stick with credible, known builders. Too-good-to-be-true deals often backfire. Due diligence on the developer is as crucial as the property itself.

8. Overlooking NRI Banking and Financing Issues

Understanding banking and finance for NRIs is critical. Mistakes here can cost both compliance headaches and extra money:

• NRE vs NRO confusion: Many NRIs don’t clearly separate these accounts. A common error is receiving rental or sale funds into an NRE account (meant only for foreign income). All Indian-sourced income (rent, dividends, sale proceeds) should go to an NRO account. Using the wrong account can trigger bank scrutiny and complicate repatriation.

• Loan pitfalls: NRIs sometimes take loans for property without checking terms. For instance, some banks require a resident co-applicant or restrict the loan-to-value (LTV) ratio. If you default or move permanently abroad, loan recovery can be harsh. Also, currency risk: taking an INR loan means you repay with fluctuating rupee, whereas your income is in USD.

• Tax Collected at Source (TCS): New rules impose TCS (currently 20% on remittance above INR 7 lakh) when NRIs send funds out of India. Failing to anticipate this can strain cash flow.

Finance Fact: Only funds from abroad (salaries, foreign investment) go into NRE accounts. For property, use NRO accounts. NRE allows full repatriation of principal & interest, but NRO is subject to repatriation limits.

Table: NRI Accounts & Loans

ItemNRE AccountNRO AccountPurposeForeign earnings (USD, etc.)Indian earnings (rent, sale)RepatriabilityFully repatriable (principal + interest)Repatriation up to $1M/yearJoint accountOnly with NRI/PIOWith NRI/PIO or ResidentLoansNot available (NRE)Loans available on NRO collateral

Solutions: Before transacting, set up both an NRE and NRO account with a reliable bank. Use the NRO for rental and sale proceeds. If you need financing, compare NRI home loan offers – some banks provide mortgages to NRIs at competitive rates, but terms vary. Always factor in currency movements: consider fixing part of the loan if possible or keeping a buffer for rupee devaluation.

• ✔️ Keep separate bank accounts (NRE/NRO) and track which funds go where.

• ✔️ Consult the bank on documentation needed (e.g., PIO/OCI card, passport copies, address proof) before purchasing.

• ✔️ Check if mortgage loans require a co-signer or have high interest for NRIs.

• ✔️ Be aware of TCS on foreign remittances (likely to your home country) and prepare the necessary documentation to claim credit.

Case Study: Anna, living in the US, took an INR loan to buy a Mumbai flat but didn’t read the terms. When she became NRI (after marriage), the bank hiked her interest rate (as per NRI loan rules) and restricted pre-payments. This caught her off guard, as her calculations didn’t account for such clauses.

Key Takeaway: Get your financial structure right from day one. Proper NRI account usage and loan planning prevent nasty surprises later.

9. Underestimating All-In Costs (Stamp Duty, Fees, Taxes)

The purchase price is just the beginning. Many investors forget transaction and ongoing costs:

• Stamp Duty and Registration: In India, buyers pay stamp duty (official tax on purchase deed) which ranges from ~5% to 12% of the property value depending on the state and whether the buyer is male/female, NRI, etc. On top of that is ~1% registration fee. Sometimes sellers undervalue transactions on the deed to save on stamp duty; however, this is illegal and risks legal trouble (the government can reassess based on market value).

• GST on under-construction property: If you buy a new apartment from a builder (without RERA posession certificate), you’ll owe GST (5% on residential, 12% on commercial) unless the project has RERA registration (then GST is 1%). Sometimes investors neglect this ~₹3-7 lakh on a ₹1 crore flat.

• Legal and Agent Fees: Budget for lawyer fees (often 0.25%-0.5% of property value) and any brokerage (commonly 2%-3% of price) if an agent is involved.

• Property Tax and Maintenance: After purchase, local municipal taxes (property tax) apply annually. If it’s in a society or gated community, there are maintenance charges, community fees or amenities charges that can be significant.

Cost Checklist: Stamp duty, registration fee, lawyer fee, broker commission, GST (if applicable), society transfer fees, property tax. Include all these in your budget to avoid getting over-stretched.

Table: Example of Additional Costs on a ₹10 Crore Purchase

Cost ComponentApproximate RateEstimate (₹)Stamp Duty5% – 7%50–70 lakhsRegistration Fee~1%10 lakhsGST (if applicable)1% – 5%10–50 lakhsLegal & Due Diligence0.5%5 lakhsBroker Commission2% – 3%20–30 lakhsTotal (Approx)9% – 16%95–165 lakhs

Solutions: Research the exact stamp duty rate in the relevant state (e.g., Maharashtra charges ~5%, Delhi ~6%). Rather than under-declare, plan to pay the full amount. Many NRIs find it convenient to remit money via a Power of Attorney holder to pay stamp duty and registration. Always ask for official receipts of these payments.

• ✔️ In rental yield calculations, include estimated GST (for new projects) and annual property taxes.

• ✔️ Keep funds in INR to pay these costs on time; using foreign credit cards or delayed payments can be expensive.

• ✔️ Remember forgery checks: Overvaluing or undervaluing properties on registers is illegal – always comply with market rates.

Case Study: Sunita bought a 2BHK in Hyderabad thinking she’d save by declaring a lower value on the stamp paper. Later, the registration authorities detected the discrepancy through valuation guidance and slapped her with double the duty plus fines – a bill of 6 lakhs on a 1.5 crore flat!

Key Takeaway: Factor in all taxes and fees before closing. The true cost of buying Indian property often exceeds the advertised price by 10–15%. Budgeting properly prevents nasty last-minute shortfalls.

10. Skipping Expert Advice and Local Guidance

Finally, one of the biggest mistakes is trying to do it all yourself. Indian real estate (and legal/tax system) can be dauntingly complex. Without local expertise, even a well-intentioned investor can misinterpret rules or overlook simple requirements. For example:

• Documentation Pitfalls: NRIs must have a valid PAN card (even foreign nationals buying property need PAN) and often Aadhaar (for KYC) to complete a sale in India. Some miss filling these formalities until last minute. Similarly, a Power of Attorney (POA) is commonly used for NRIs – if it’s improperly drafted or not notarized/apostilled, banks and registrars can reject it.

• Legal Nuances: Laws like DTAA tax declarations or FEMA repatriation are nuanced. A US-based realtor or family friend may not know these, but a local lawyer will.

• Changing Regulations: Indian rules can change. For example, FEMA limits or tax rates might update in budgets. An expert stays updated on these and alerts you.

Expert Tip: Even a single session with a cross-border tax attorney or a chartered accountant specializing in NRI investment can reveal opportunities. For instance, capital gains from a sale can be saved by investing in specified bonds or properties under Section 54EC/54F of the Income Tax Act – many investors miss these exemptions without advice.

Solutions: Allocate part of your budget for professional fees. Platforms now exist for NRIs to connect with vetted legal and financial experts online. Use them. Engage a qualified real estate attorney (preferably one with NRI clients), and/or an NRI property consultant. They can conduct a final pre-purchase checklist on your behalf.

• ✔️ Do not rely solely on non-professional sources. Cross-check information from multiple experts.

• ✔️ If possible, visit India at least once during the buying process to meet advisors and view property.

• ✔️ Keep all your advisors (lawyer, CA, agent) in the loop about each other’s advice to avoid conflicting information.

Case Study: Jake from Seattle managed his Mumbai condo purchase remotely. He didn’t consult an Indian lawyer until after signing. Unfortunately, the final agreement lacked key clauses (like builder delay penalties), which he only realized too late. A brief consultation early on could have fixed this issue at no extra cost.

Key Takeaway: There’s no shame in getting help. The cost of a good lawyer or tax consultant is tiny compared to the costs of a mistake. Plan on consulting experts at each stage—especially for cross-border transactions.

Conclusion and Expert Help

Investing in India’s booming real estate market from abroad can be rewarding, but it’s fraught with complex regulations and pitfalls. By avoiding the 10 mistakes outlined above – from FEMA oversights to tax miscues to builder risks – you stand a much better chance of success. Always do your homework: study the rules, verify every detail, and seek expert guidance early on.

Ready to invest smartly? Consult an India-experienced real estate attorney or financial advisor before making any purchase. For an easy reference, download our Free NRI Property Investment Checklist to ensure you’ve covered all bases before signing. With the right preparation, US investors can navigate the Indian market confidently and avoid these common missteps.