What an NRI or OCI can buy
The RBI’s FAQ allows NRIs and OCIs to purchase immovable property in India other than agricultural land, farmhouses and plantation property. It sets no numerical limit on residential or commercial purchases. Citizens of certain neighbouring countries face separate restrictions, so confirm your own status if that applies.
Inherited agricultural land is treated differently from a purchase: it can be held, and sold or gifted to a resident Indian citizen.
| Property type | Purchase by NRI / OCI | Notes |
|---|---|---|
| Flat, villa or residential plot | Permitted | Project and title checks still apply |
| Shop, office or other commercial property | Permitted | Check leasing and income-tax treatment |
| Agricultural land, plantation, farmhouse | Not permitted by purchase | Can be inherited; may be sold or gifted to a resident Indian citizen |
Source: RBI FAQ: purchase of immovable property by NRIs and OCIs (updated 6 April 2023) ↗
How the purchase must be paid
Payment must be received in India through banking channels, either as inward remittance or from NRE, FCNR(B) or NRO accounts. The RBI says payment should not be made with travellers’ cheques or foreign currency notes. Indian lenders also offer home loans to NRIs, on their own eligibility terms.
Keep every remittance certificate and bank statement with the sale agreement. The same records are what your bank will ask for when you later want to take sale proceeds abroad.
Source: RBI FAQ: purchase of immovable property by NRIs and OCIs (updated 6 April 2023) ↗
Buying without being in India
Many NRI purchases are completed with a specific power of attorney given to a trusted person in India. Draft it narrowly for the one transaction, have it attested as your country of residence requires, and check how the sub-registrar in that state expects it to be presented. The attorney, not a broker, should sign on your behalf.
Arrange your own checks rather than relying only on a seller’s video. Ask an independent lawyer to review title and the agreement, have someone you trust visit the site, and match any project against the state RERA record before paying.
Selling later: tax deduction and repatriation
When an NRI sells property in India, the buyer is generally required to deduct tax at source from the payment under Indian income-tax law. The rate and any lower-deduction certificate depend on your gains and current rules, so plan the sale with a chartered accountant before signing.
The RBI’s FAQ limits repatriation of sale proceeds from residential property to not more than two properties, and separately allows remittance of up to USD 1 million per financial year from NRO balances, subject to taxes and documentation. Your bank will ask for proof of how the property was paid for.
Source: RBI FAQ: purchase of immovable property by NRIs and OCIs (updated 6 April 2023) ↗ Income Tax Department: foreign and NRI taxpayer portal ↗