Buying property in Uttar Pradesh as an NRI is legally straightforward, but the tax and repatriation rules changed meaningfully between 2024 and 2026, and several guides still circulating online describe the old regime. Here is the current position, in plain language.
Can NRIs buy property in Uttar Pradesh?
Yes. Under FEMA, an NRI or OCI can freely buy residential and commercial property in India, including anywhere in UP. No RBI permission is needed. The restriction is on agricultural land, plantation property, and farmhouses, which NRIs cannot purchase (they can only inherit them).
This matters in Lucknow specifically: some plotted schemes on the city’s outskirts sit on land that is still agricultural in the revenue records. Verifying that the land use is properly converted is step one of our diligence, not a formality.
How should the purchase be funded?
Payment must come through banking channels: an inward remittance from abroad, or funds held in your NRE, NRO, or FCNR account. You cannot pay with foreign currency notes or traveller’s cheques. Home loans from Indian banks are available to NRIs, typically against a power of attorney holder in India and income documents from your country of residence.
Keep every payment traceable to one of these sources. The paper trail decides how smoothly you can repatriate the money when you eventually sell.
What taxes apply when you buy?
When buying from a resident seller, you deduct TDS of 1 percent if the consideration is Rs 50 lakh or above, the same as any resident buyer. Stamp duty in UP is around 7 percent plus 1 percent registration, with a concession for property registered in a woman’s name. Confirm the current schedule at the time of registration, as state rates are revised periodically.
Be careful in resale deals where the seller is also an NRI: TDS then falls under Section 195 at the capital gains rate on the full consideration, and getting it wrong creates liability for you as the buyer.
What happens when you sell?
For transfers on or after 23 July 2024, long term capital gains on property (held over 24 months) are taxed at a flat 12.5 percent plus surcharge and cess, without indexation. Sale proceeds must first land in your NRO account. From there, current rules allow repatriation of up to USD 1 million per financial year with a chartered accountant’s certification (Forms 15CA and 15CB). If the default TDS withheld by your buyer is higher than your actual tax, a lower deduction certificate under Form 13, obtained before the sale, protects your cash flow.
How do you manage a purchase from abroad?
Three things make remote transactions safe.
First, a properly executed power of attorney, signed before the Indian consulate in your country or apostilled, and registered in India. Second, independent verification of the project on the UP RERA portal: registration number, approved plans, and delivery timeline. Third, someone on the ground whose incentives are aligned with yours, not with closing a sale. That is the role we play for our outstation and NRI clients: project verification, price benchmarking, and coordination of registration, as described on our services page. For why we believe Lucknow deserves a place on an NRI’s shortlist at all, see Invest in Lucknow.
If you are evaluating a specific project from abroad, write to us with the project name and we will tell you what our verification finds.
Tax thresholds and rates cited are as understood in mid 2026 and change with each Finance Act. We are consultants, not tax advisors. Confirm your position with a chartered accountant before transacting.