Buying and selling property in India from Germany

Document route

Indian Embassy or Consulate attestation

Time difference

3.5 to 4.5 hours behind IST

Handled in India at

Sub-registrar office and tax portal

Travel to India

None with a power of attorney

How it works from Germany

For a purchase we verify title, check the project's RERA registration and approvals, review the builder-buyer agreement and confirm the stamp duty and registration cost for the state. Payment is made from your NRE or NRO account or by remittance from your German bank through normal banking channels, and we keep the remittance certificates, which you will need at the time of sale. Your attorney holder signs and registers; we attend the sub-registrar's office with them.

For a sale we obtain your PAN records, compute the gain and apply for a lower deduction certificate before the agreement is signed. Without it the buyer must deduct tax on the entire consideration. Long-term gains on property held over two years are taxed at 12.5 percent without indexation, plus surcharge and cess; reinvestment in another Indian house or specified bonds can reduce the tax. After registration the funds are credited to the NRO account and remitted to Germany on the chartered accountant's certificate.

What is different for NRIs in Germany

• The power of attorney must be attested by the Indian mission, since a German apostille is not recognised in India. Allow three to four weeks.
• As a German tax resident you may have to report the sale in Germany. Whether tax is due there depends on the treaty and the holding period, so take German advice before you sign.
• Home loans from Indian banks to NRIs are repaid from NRE or NRO accounts or by remittance. Loans from relatives should be documented.

Step by step from Germany

1. Free review call

   Calls are held in the German morning, while offices in India are open. We read your papers on a property purchase or sale in India first, so the call is about your options and not a repeat of the facts.

2. Authority from Germany

   Where a representative must act for you in India on a property purchase or sale in India, you sign before the consular officer at the Indian mission for your federal state, since a German apostille is not accepted in India. We draft the document and send signing instructions.

3. Work in India

   In India, we verify title, settle the agreement and sale deed, handle the tax deduction paperwork and attend registration with your attorney holder. Updates for clients in Germany go by email and WhatsApp with scans of whatever is filed.

4. Result and handover

   At the end you receive the registered deed, tax certificates and, on a sale, the bank papers for repatriation. Originals are couriered to your address in Germany if you need them.

The law in full

This page covers what changes when you handle a property purchase or sale in India from Germany. For the Indian law, the complete document checklist, common mistakes and more questions, read our main page on Buying & Selling Property. For other matters, see all legal services for NRIs in Germany or the Property & Real Estate practice area.

Questions from NRIs in Germany