Buying property in India as an NRI or OCI

What you can buy

A non-resident Indian or an Overseas Citizen of India can buy residential and commercial property in India without the Reserve Bank's permission. Agricultural land, plantation property and farmhouses cannot be bought, though they can be inherited.

The rules are in the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, made under FEMA.

Paying for it

Payment must come through normal banking channels: money sent into India, or from an NRE, NRO or FCNR(B) account. Traveller's cheques and foreign currency notes are not allowed.

Indian banks and housing finance companies lend to NRIs for buying a home, with EMIs paid from an NRE or NRO account or by remittance.

If you cannot be there

Registration needs the buyer or a representative at the sub-registrar's office. A power of attorney signed abroad is attested at the Indian embassy or consulate (or apostilled in Hague Convention countries) and then adjudicated for stamp duty in India within the time the state allows. Keep its powers specific to this purchase.

When you sell

The buyer deducts tax on your gain under section 195 of the 1961 Act (section 393(2) of the Income-tax Act, 2025), not the 1% under section 194-IA. From 1 October 2026 a resident individual or HUF buyer can deposit it against their PAN with Form 141, with no TAN; a company or firm buying still needs a TAN. You can apply to the tax department for a lower-deduction certificate if the tax due is less.

Sale proceeds of up to two residential properties bought with foreign exchange can be sent abroad. Beyond that, money in an NRO account can be repatriated up to USD 1 million a financial year, with the forms your bank asks for.

Common questions

Sources

• Foreign Exchange Management (Non-debt Instruments) Rules, 2019
• RBI Master Direction on Remittance of Assets
• Income Tax Act, 1961: sections 194-IA and 195
• Confirm current limits with your bank and a chartered accountant

Last checked 2026-10-01.