Buying property in India as an NRI or OCI: the essentials

Buying from abroad is common and entirely legal, but foreign exchange rules apply. This is an overview of the framework; confirm specifics with a chartered accountant and your bank before you commit.

What you can and can't buy

• Under FEMA and the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, NRIs and OCIs may acquire immovable property in India other than agricultural land, plantation property or a farm house.
• In practice: residential apartments, villas and commercial units are generally permitted.
• Agricultural land, farm houses and plantation property are not permitted by purchase.

How payments must be made

Payment must come through normal banking channels: an inward remittance from abroad, or a debit to an NRE, FCNR(B) or NRO account in India. Traveller's cheques and foreign currency notes are not permitted. Keep every remittance and bank record: you'll need them for any future repatriation.

Repatriating sale proceeds

If the property was bought in accordance with the rules and paid for in foreign exchange through banking channels (or from NRE/FCNR(B) funds), the sale proceeds can generally be repatriated (for residential property, up to two properties). Separately, there is a USD 1 million per financial year limit on remittances from NRO balances and certain asset sale proceeds. Taxes and documentation apply, so take advice from a CA.

Practical steps from abroad

1. Shortlist only RERA-registered projects and check them on the state portal yourself.
2. Ask for a live video walkthrough of the actual tower and unit, not just the sample flat.
3. Have the agreement and title documents reviewed by an independent lawyer in India.
4. If you can't travel for registration, your lawyer can advise on a suitable power of attorney.
5. Plan tax with your CA, including tax deduction obligations that may apply when buying from or selling as a non-resident (the Income-tax Act, 2025 applies from 1 April 2026).

General information only, not legal, tax or financial advice. Rules change; your CA and bank must confirm what applies to you.