Executing a Power of Attorney from Germany -- the apostille route
Germany is a founding member of the 1961 Hague Apostille Convention, so a Power of Attorney notarized by
a German Notar can be authenticated with a single apostille from the competent German authority (typically
the regional court -- Landgericht -- with jurisdiction over the notary), rather than the older multi-step
consular legalization process. Once apostilled, the document is accepted as authentic by Indian authorities
without further attestation by an Indian mission.
Specific vs. General Power of Attorney
A Specific POA authorizes only a named act -- for example, selling one identified
property -- and is generally the safer, more readily accepted option for a one-time transaction. A
General POA grants broader, ongoing authority and should only be given to someone trusted
completely, since misuse carries higher risk.
Registration and stamp duty once the POA reaches India
Under Section 17 of the Registration Act, 1908, a POA that creates or transfers an interest in immovable
property must be adjudicated for stamp duty and registered before it can be relied on for that transaction.
Stamp duty rates and adjudication timelines are set at the state level in India and vary by state, so these
should be confirmed with the relevant state's stamp/registration department before the transaction
proceeds.
Selling inherited property in India as an NRI in Germany
Once succession formalities are complete (see this platform's Inheritance section), an NRI selling
inherited property in India must account for TDS on the sale under the applicable provisions for NRI
sellers -- typically at a higher rate than for resident sellers unless a lower-deduction certificate is
obtained from the Assessing Officer in advance. Sale proceeds credited to an NRO account can then be
repatriated up to the USD 1 million per financial year limit described in this platform's Compliance
section, subject to Form 15CA/15CB certification.
Common mistakes to avoid
- Assuming German notarization alone is sufficient -- the apostille step is still required for the
document to be accepted in India.
- Describing the property vaguely instead of citing the exact survey number/registered address.
- Not applying for a lower-deduction TDS certificate in advance, resulting in excess tax being
deducted at the standard NRI-seller rate and needing to be claimed back via an Indian tax return.
Does a POA from Germany need to be registered in India too, or is the apostille enough?
Both steps are generally needed for a property transaction -- the apostille authenticates the document
for use in India, and separately the POA itself typically needs to be adjudicated for stamp duty and
registered in India before the transaction it authorizes can be completed.
Which German authority issues the apostille?
It depends on the type of document and the German state (Land) involved -- for notarized documents this
is typically the president of the regional court (Landgericht) with jurisdiction over the notary. Confirm
the correct authority with the notary who prepares the document.
Is TDS on an NRI's property sale always at the same rate as for resident sellers?
No -- NRI sellers are generally subject to TDS at rates specific to non-resident sellers on the full sale
consideration unless a lower-deduction certificate is obtained in advance from the Indian tax
authorities.
Can sale proceeds of inherited property be repatriated to Germany?
Yes, subject to the USD 1 million per financial year NRO repatriation limit and the applicable Form
15CA/15CB certification -- see this platform's Compliance section for the full mechanics.
