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

Buying property in India from abroad usually isn't the hard part — most NRIs manage that without much difficulty. The part that trips people up is everything around the purchase: which account the money should come from, what happens when you eventually want to sell, and how much of that money you can actually bring back to the country you live in.

This guide walks through the FEMA (Foreign Exchange Management Act) rules that govern NRI property ownership in India, in plain language, with a focus on the two questions we get asked most often at our NRI desk: "What can I actually buy?" and "Will I be able to get my money back out later?"

What NRIs Can and Cannot Buy

Under general permission granted by the Reserve Bank of India, NRIs and OCIs (Overseas Citizens of India) can buy any residential or commercial property in India without needing prior RBI approval, and there's no cap on how many properties you can own.

The exception is land-based agricultural assets:

• Agricultural land
• Plantation property
• Farmhouses

NRIs cannot purchase these categories outright — the only way to hold them is through inheritance from a resident Indian, and even then, resale is restricted to resident Indian citizens.

How to Pay: NRE, NRO, and FCNR Accounts

Payment for property in India must go through proper banking channels — you cannot pay using foreign currency notes or traveller's cheques directly. Three account types are relevant:

Which account you fund the purchase from matters — it directly affects how easily you can repatriate money if you sell the property later. This is worth deciding before you buy, not after.

Documentation You'll Need

The exact checklist varies slightly by state and developer, but at a minimum, expect to need:

• A valid passport and OCI/PIO card (if applicable)
• PAN (Permanent Account Number) — mandatory for any property transaction in India
• Proof of NRI status (visa, work permit, or overseas address proof)
• Bank statements showing the funding source (NRE/NRO/FCNR)
• A registered Power of Attorney, if you won't be present in India to sign documents yourself

The Power of Attorney is often the single most useful document for NRI buyers. It lets a trusted representative — commonly a parent, sibling, or lawyer — sign the sale agreement, register the property, and handle possession formalities on your behalf, without requiring you to fly in for each step of the process.

Repatriation: Getting Your Money Back Out

This is where most confusion happens, so it's worth being precise. Repatriation rules depend on how the property was originally funded:

If you bought using NRE or FCNR funds

You can generally repatriate the original investment amount without the USD 1 million annual cap applying to that principal — but for residential property, full principal repatriation this way is limited to two properties over your lifetime. Any capital gains beyond the original investment still route through your NRO account and follow NRO repatriation rules.

If you bought using NRO funds (Indian-sourced income)

Sale proceeds are credited to your NRO account, and repatriation from there is capped at USD 1 million per financial year, covering the total of all your remittances from that account — not just this one property.

For any repatriation, you'll need Form 15CA (a self-declaration filed with the Income Tax Department) and, for larger remittances, Form 15CB — a certificate from a Chartered Accountant confirming applicable taxes have been paid. Your bank will require both before processing an international wire transfer.

Common Mistakes NRIs Make

• Not deciding the funding account in advance. Paying from the "wrong" account doesn't stop the purchase, but it can make repatriation more complicated later.
• Assuming RBI approval is needed for a standard purchase. For residential and commercial property, it usually isn't — this misconception sometimes causes buyers to delay unnecessarily.
• Skipping RERA verification because the deal is being handled remotely. Distance doesn't reduce the need for due diligence — if anything, it increases it. See our RERA verification guide for the exact steps.
• Underestimating TDS on sale. Tax is deducted at source when an NRI sells property in India, typically at a meaningfully higher rate than for resident sellers. Factor this into your numbers before you commit to a sale price, and consult a CA for current rates.
• Leaving the Power of Attorney until the last minute. A registered PoA can take time to execute correctly from abroad (often via the Indian embassy/consulate) — start this early if you won't be present for the transaction.

Frequently Asked Questions