In this work, the damage formation in InN layers has been investigated subsequent to europium implantation at 300 keV and room temperature. The layers of several micrometres were produced by hydride vapour phase epitaxy and used as matrices for ion implantation experiments due to their good crystalline quality. From this investigation, it is shown that InN exhibits a low stability under rare earth ion implantation. Starting at a low fluence of around 5 × 1012 Eu cm−2, an extensive modification of the surface layer takes place. The dissociation of InN and the presence of misoriented nanograins are observed in the damaged area. Analysis by electron diffraction indicates that the nanograins correspond to indium oxide In2O3.