NRI Guide to Buying Property in India: FEMA Rules, Payment & Repatriation (2026)

Buying property in India as an NRI or OCI is straightforward once you know the rules — most of which come from FEMA, administered by the Reserve Bank of India. This guide covers who can buy, how you must pay, what you can send back abroad, and the documents and taxes involved. It is general information; for your specific case, confirm with a CA and a property lawyer.

Who can buy — and what you cannot buy#

• NRIs and OCIs can buy residential and commercial property in India without any special RBI permission
• You cannot buy agricultural land, plantation property or a farmhouse directly
• You can, however, inherit such property, or receive it as a gift from a resident Indian, subject to the applicable rules
• There is no limit on the number of residential or commercial properties you may buy

How you must pay#

Payment has to move through banking channels — you cannot pay in foreign currency cash or by traveller's cheque. Funds come either as an inward remittance from abroad or from your NRE, NRO or FCNR account. Under the FEMA mode-of-payment rules, consideration is paid through banking channels or a repatriable rupee/deposit account maintained under the FEMA Deposit Regulations.

Home loans for NRIs#

Banks and housing finance companies offer home loans to NRIs, typically repaid through your NRE/NRO account or from rental income. The RBI loan-to-value ceilings that apply to residents apply here too — broadly up to 90% for smaller loans, tapering to 75% on high-value loans — and stamp duty and registration are paid from your own funds. See our home-loan guide for the full picture.

Repatriation — sending money back abroad#

• Money in an NRE or FCNR account is freely repatriable, with no upper limit
• From an NRO account you can repatriate up to USD 1 million per financial year (capital and asset-sale proceeds), net of applicable Indian taxes
• Sale proceeds of up to two residential properties can be repatriated where the property was bought with foreign/NRE/FCNR funds
• Current income such as rent, net of tax, can generally be remitted without that cap

Documents and Power of Attorney#

Alongside the usual title chain, Encumbrance Certificate, Khata and RERA checks, NRIs typically need a valid passport/OCI card, PAN, overseas address proof and NRE/NRO bank details. If you cannot be present to sign and register, a properly drafted and attested Power of Attorney lets a trusted representative complete registration on your behalf.

Taxes to plan for#

You pay the same stamp duty and registration as a resident buyer. If you buy from another NRI (a resale), TDS obligations can be higher and are the buyer's responsibility, so factor that in. Rental income and future capital gains are taxable in India. Because NRI taxation interacts with your country of residence and any tax treaty, confirm the current rates and TDS with a chartered accountant before you transact.

Common mistakes NRIs make#

• Relying on relatives or brokers for verification instead of an independent title and document check
• Assuming an Encumbrance Certificate proves clear title — it does not
• Paying outside banking channels or from the wrong account, complicating future repatriation
• Skipping RERA checks on under-construction projects
• Signing a vague or over-broad Power of Attorney

Distance is not the real risk for NRI buyers — unverified paperwork is. Get the documents and the money trail right, and the rest is logistics.

Last reviewed August 2026. This is general information under FEMA/RBI and Indian tax rules, not legal, tax or financial advice. Rules and limits can change and depend on your residency and account type; confirm current requirements with the RBI guidance, a chartered accountant and a property lawyer before you transact.