Foreign Landlord: Rules, Taxes, and What You Need to Know in India

When you own property in India but live abroad, you’re a foreign landlord, a non-resident property owner who collects rental income from Indian tenants. Also known as a NRI landlord, you’re subject to India’s tax and property laws—even if you never step foot in the country.

Being a foreign landlord doesn’t mean you can ignore local rules. The rental income tax India rules are strict: you must pay income tax on rent collected, file returns annually, and often appoint a local agent to handle payments and compliance. Many assume foreign owners are exempt, but the law treats rental income from Indian property the same way, whether you’re in Mumbai or Montreal. You can’t avoid taxes by wiring money overseas—the Indian tax department tracks these transactions.

And it’s not just about taxes. As a non-resident landlord, you’re bound by Indian tenancy laws, which vary by state. Some cities require rental registration, others cap rent increases, and a few demand security deposit limits. You can’t just raise rent whenever you want or evict a tenant without notice. Violate these rules, and you risk fines, legal delays, or even losing your right to collect rent. Many foreign owners don’t realize their property management company might be breaking the law—and they’re the ones held responsible.

What about selling? If you decide to sell your Indian property, capital gains tax applies, and the buyer must withhold a portion of the sale price for tax purposes. You’ll need a PAN card, even if you’re not an Indian citizen. The process isn’t impossible, but skipping steps like TDS compliance or failing to file Form 15CA/15CB can freeze your funds for months.

There’s a reason some foreign landlords hire local advisors: the system isn’t built for outsiders. But you don’t need to be an expert to stay compliant. You just need to know the basics—what’s required, what’s optional, and what could cost you big time. Below, you’ll find real cases, legal breakdowns, and practical tips from people who’ve been there. Whether you’re collecting rent from a flat in Bangalore or managing a villa in Goa, this collection cuts through the noise and shows you exactly what you need to do—no fluff, no theory, just what works.