—Guide
FEMA Rules for NRIs Buying, Selling and Inheriting Property in India
What property NRIs and OCIs can buy, sell, gift and inherit in India under FEMA, how purchases must be paid for, and the special rules for agricultural land and farmhouses.
NRIs and OCI cardholders can own property in India, but FEMA sets conditions on what they can buy, how they pay, and to whom they can sell. This guide explains the main rules.
What NRIs and OCIs Can Buy
Any immovable property in India, residential or commercial, other than agricultural land, plantation property or farmhouses. There's no limit on the number of residential or commercial properties.
How to Pay
- Through inward remittances from abroad.
- From NRE, FCNR or NRO accounts.
- Through a home loan from an Indian lender, repaid from these sources.
Payment in foreign currency notes or traveller's cheques isn't allowed.
Selling
- Residential and commercial property can be sold to residents, NRIs or OCIs.
- Agricultural land, plantations and farmhouses held by an NRI (for example, through inheritance) can be sold only to Indian citizens resident in India.
Gifts
NRIs can receive residential or commercial property as a gift from relatives. Agricultural land can't be gifted to NRIs, but can be inherited.
Inheritance
NRIs and OCIs can inherit any property, including agricultural land, from a person resident in India, or from a person who acquired it in line with the foreign exchange rules of the time.
Tax on Transactions
When an NRI sells, the buyer deducts TDS at capital gains rates. When an NRI buys from a resident, the usual 1% TDS applies above ₹50 lakh. Stamp duty and registration follow state rules.
Getting Help
Think Filing advises NRIs on property transactions, tax and repatriation of proceeds.