What NRIs and OCIs can buy
Under India’s foreign exchange rules (FEMA), NRIs and OCI cardholders can buy any residential or commercial property in India, with no limit on the number of properties. Three kinds of property are off-limits for purchase:
| Can buy | Cannot buy (without RBI permission) |
|---|---|
| Flats, houses, villas, residential plots | Agricultural land |
| Shops, offices, SCOs, commercial plots | Plantation property |
| Industrial plots (e.g. in Lalru) | Farm houses |
- Inheritance: you can inherit any property from a resident of India — including agricultural land. From a non-resident, only if that person bought it in line with the rules at the time.
- Gift: you can receive residential or commercial property as a gift from a resident, or from an NRI/OCI who is a relative.
- Foreign-national spouse: may buy one property jointly with the NRI/OCI spouse, if the marriage is registered and has lasted at least two years.
How to pay
Payment must come through Indian banking channels: an inward remittance from abroad, or a debit to your NRE, FCNR(B) or NRO account. Traveller’s cheques and foreign currency notes cannot be used. Paying from abroad or from NRE/FCNR(B) funds matters later — it decides how much of the sale money you can send back abroad.
Home loans for NRIs
Major banks and housing finance companies lend to NRIs for property in India, usually in rupees, with tenures of up to about 30 years. Expect to provide your passport and visa or work permit, employment contract, recent payslips and overseas bank statements, and tax returns. The same Reserve Bank limits on loan-to-value apply as for residents: up to 90% of the property value for loans up to ₹30 lakh, 80% up to ₹75 lakh, and 75% above that.
EMIs can be paid from your NRE or NRO account. Interest rates moved up after the Reserve Bank raised the repo rate to 5.5% on 7 October 2026, so compare offers. Run the numbers with our EMI calculator.
Power of attorney: buying or selling without flying in
Most NRIs appoint a trusted person in India through a power of attorney (PoA) to sign documents and attend registration.
- Draft a specific PoA. Name the property, the acts allowed (signing the agreement, paying, registering, collecting documents) and any limits. A special PoA for one property is safer than a general one.
- Sign it abroad before a notary. Then have it apostilled (in Hague Convention countries such as the US, UK, Canada, Australia and the UAE) or attested at the Indian embassy or consulate.
- Get it stamped in Punjab quickly. A PoA signed abroad must be stamped after it reaches India — do it within three months of signing to be safe. Stamp duty depends on the type of PoA and to whom it is given.
- Register it where needed. A PoA used to sell or register property should be registered at the sub-registrar office where the property is. Notarised-only copies are usually not accepted.
Selling as an NRI: tax and TDS
When you sell, the gain is taxed like a resident’s, but without the option of indexation: long-term gains (property held over 24 months) at 12.5%, short-term at slab rates, plus surcharge and 4% cess. You can reinvest in a new house or capital gain bonds to save tax. Estimate it with our capital gains tax calculator.
The buyer must deduct TDS from every payment to you — on the full price, not just the gain — unless you give them a lower or nil TDS certificate. Apply for it online (Form 128 under the new rules) well before the sale. From 1 October 2026 resident buyers can deposit this TDS using their PAN, so buying from an NRI no longer needs a TAN. See our NRI TDS calculator and buyer’s guide to NRI TDS.
Sending the sale money abroad
- Two-property limit. Sale proceeds of residential property can be repatriated for up to two properties, if they were bought in line with FEMA through banking channels.
- Up to USD 1 million a year from NRO. Money in your NRO account, including property sale proceeds, can be remitted abroad up to USD 1 million a year after paying tax.
- Paperwork. Your bank needs the remittance declaration and a chartered accountant’s certificate — Forms 145 and 146 from April 2026, which replaced Forms 15CA and 15CB — along with the sale deed and tax proof.
Rules on repatriation are detailed; your bank’s NRI desk and a chartered accountant should confirm the steps for your case.
NRI buyer checklist
- Confirm the property type is allowed (not agricultural land, plantation or farm house).
- Verify RERA registration, title and approvals — see our RERA & legal guide, or ask for a free Property Check.
- Pay only through NRE/NRO/FCNR accounts or inward remittance, and keep every bank advice.
- Use a property-specific PoA, apostilled or consulate-attested, stamped and registered in Punjab.
- Register the sale deed and complete the mutation; keep certified copies abroad and in India.
- Plan your exit: keep purchase records for the capital gains and repatriation paperwork.
Frequently asked questions
Can an NRI buy agricultural land in Punjab?
No. NRIs and OCIs cannot buy agricultural land, plantation property or farm houses without special permission from the Reserve Bank of India. They can, however, inherit such land from a resident of India.
Can an NRI register property in India without coming here?
In most cases yes, through a power of attorney given to someone in India, signed before a notary abroad, apostilled or consulate-attested, then stamped and registered in Punjab. The sub-registrar decides whether a PoA is acceptable, and some banks may still need you in person. Our registration assistance includes NRI coordination.
How much TDS is deducted when an NRI sells property?
12.5% for a long-term sale or 30% for a short-term sale, plus surcharge and 4% cess, on the full payment — unless the NRI has a lower or nil TDS certificate. See our NRI TDS calculator.
Can I pay for Indian property from my foreign bank account?
Yes, by inward remittance through normal banking channels into India, or from your NRE, FCNR(B) or NRO account. Cash in foreign currency and traveller’s cheques are not allowed.
How much money from a property sale can I send abroad?
Sale proceeds of up to two residential properties bought through banking channels can be repatriated, and NRO balances can be remitted up to USD 1 million a year after tax, with the bank’s forms and a CA certificate.
Can an OCI cardholder buy property like an NRI?
Yes. OCI cardholders have the same rights as NRIs to buy residential and commercial property, with the same exclusions for agricultural land, plantations and farm houses.
