FAQs

1. Who qualifies as a NRI or OCI under Indian law?

A Non-Resident Indian (NRI) is an Indian citizen residing outside India for employment, business, or any other purpose, for an uncertain duration. An Overseas Citizen of India (OCI) is a foreign national who was eligible to become a citizen of India or is a child/grandchild of such a person.

2. Can NRIs/OCIs buy property in India?

Yes, NRIs and OCIs are allowed to purchase residential and commercial properties in India under the automatic route as per FEMA guidelines, except agricultural land, farmhouses, and plantations. No prior approval from RBI is required however to ensure:

• The transaction is through authorized banking channels
• Maintain compliance with RBI’s repatriation limits, income tax returns, and DTAA norms

3. Are there any restrictions on the type of property NRIs can buy?

Yes. NRIs/OCIs cannot purchase agricultural land, plantation property, or farmhouses in India without prior approval from the Reserve Bank of India.

4. Can NRIs buy property jointly with a resident Indian or another NRI/OCI?

Yes. NRIs can buy property:

• Jointly with another NRI/OCI
• Jointly with a resident Indian (if permitted under FEMA) However, joint ownership with a foreign citizen (non-OCI) is not permitted.

5. How many properties can NRI own in India?

An NRI can own any number of residential or commercial properties in India, with no legal restrictions.

6. Is it a good idea for NRIs to buy property in India?

Yes, it is a good idea for NRIs to buy property in India, as it offers long-term growth, potential rental income, and a stable asset in a growing market.

7. Is home loan available to NRIs for property purchase in India?

Yes. NRIs are eligible for home loans from Indian banks and housing finance companies, we facilitate for ease of processing your application:

• Loan repayment must be through inward remittance, or through NRE/NRO/FCNR accounts.
• EMI payments can also be made by resident relatives on behalf of the NRI, subject to FEMA rules.

8. What payment modes are allowed for NRI property purchases?

As per FEMA:

• Payments must be made in Indian Rupees (INR) through banking channels only.
• Funds must be from:
  • NRE Account (Non-Resident External)
  • NRO Account (Non-Resident Ordinary)
  • FCNR Account (Foreign Currency Non-Resident) Cash payments are not permitted.

9. What documents are required from NRIs to buy property?

Essential documents include:

• Valid passport and visa/OCI card

• PAN card (mandatory for transactions and taxation)
• Indian address proof (Notorised) / Overseas Address proof (Apostilled)
• NRE/NRO bank account details

10. Can NRIs repatriate sale proceeds of the property?

Yes, subject to conditions:

• Repatriation is allowed only for two residential properties.
• Funds must have been invested via NRE/FCNR accounts or inward remittance.
• In case of inherited property, repatriation is allowed subject to certain conditions, our tax experts can guide you specific
• To avoid high TDS on sale of property by NRI, they can apply for a lower TDS certificate from the Income Tax Department.

Further rental income if earned from the properties in India can be repatriated after payment of applicable taxes and submission of Form 15CA/15CB.

11. What are the tax implications for NRIs buying property in India?

• NRIs are subject to TDS at 1% (if property value > ₹50 lakhs) for purchase.
• On selling property, TDS is deducted at applicable capital gains rate:
  • 20% for LTCG (if held >2 years)
  • 30% for STCG (if held ≤2 years)
• NRIs can claim benefits under Double Taxation Avoidance Agreement (DTAA).

Further, NRIs must register their property with the respective States Sub-Registrar Office. Stamp duty and registration charges apply as per local laws.

12. Are there any reporting obligations to RBI post-purchase?

For residential/commercial property purchases by NRIs/OCIs, no post-reporting to RBI is required under the automatic route, as long as the transaction is routed through compliant channels.

Still have questions?

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