India property laws for NRIs: what you can own and do
A plain-language guide to what a non-resident Indian can buy, hold, inherit, rent, sell, gift and repatriate in India, and the FEMA and tax rules behind each. The exact position depends on your facts and the rules change, so treat this as an orientation, not a substitute for current advice.
An NRI can generally buy, hold and sell residential and commercial property in India, and can inherit almost any property, including agricultural land. What an NRI generally cannot purchase is agricultural land, a farmhouse or plantation property. Payments must move through proper banking channels, rental income and capital gains are taxable, and sale proceeds are repatriated abroad through the NRO route within an annual limit and with the prescribed forms. The precise rules sit in FEMA and the income-tax law and change over time, so confirm the current position before you act.
- NRIs and OCIs can generally acquire residential and commercial property; there is usually no cap on how many. [VERIFY]
- An NRI generally cannot buy agricultural land, a farmhouse or plantation, but can usually inherit it. [VERIFY]
- Purchases are paid for through banking channels, typically from an NRE, NRO or FCNR account. [VERIFY]
- Rental income is taxable in India and the tenant may have to withhold tax; a sale attracts capital-gains tax and withholding. [VERIFY rates.]
- Sale proceeds are repatriated through the NRO route within an annual limit, with a CA certificate and Forms 15CA/15CB. [VERIFY the limit.]
- You can manage or transact from abroad through a carefully scoped power of attorney.
The quick map
What an NRI can and cannot do
This table is the fastest orientation. Every row depends on the current FEMA and tax rules and your facts, so verify before acting.
| Action | Residential / commercial | Agricultural land, farmhouse, plantation |
|---|---|---|
| Buy / purchase | Generally allowed | Generally not allowed |
| Inherit | Allowed | Usually allowed, with conditions |
| Receive as a gift | Depends on the donor and relationship | Generally restricted |
| Hold and rent out | Allowed; income taxable | Depends how it was acquired |
| Sell | Allowed; tax and TDS apply | Restrictions on who it can be sold to |
| Repatriate proceeds | Via NRO route, within limits | Via NRO route, within limits |
Generally allowed · Depends / with conditions · Generally not allowed.[VERIFY the current FEMA position for your case.]
Acquiring
Buying property in India
An NRI or OCI can generally purchase residential and commercial property, and there is usually no restriction on the number of such properties. The purchase price must be paid through banking channels in India, typically from an NRE, NRO or FCNR account, rather than in cash. What is generally off-limits to purchase is agricultural land, a farmhouse or plantation property. Because the rules and permitted payment routes are detailed and can change, confirm the current position before committing. [VERIFY]
Owning
Holding and renting out
An NRI can hold Indian property indefinitely and let it out. Rental income is taxable in India, and the tenant may be required to withhold tax at source when paying rent to an NRI. The income is reported in an Indian return, and relief for any double taxation may be available under an applicable treaty with your country of residence. A resident representative under a power of attorney can manage the property, collect rent and deal with tenants on your behalf. [VERIFY current tax treatment.]
Passing on
Inheriting property
An NRI can generally inherit almost any Indian property, including agricultural land, a farmhouse or plantation that they could not have purchased. Inheriting is generally not taxed in India, as there is no inheritance or estate tax, though income from the property and any later sale are taxable. Completing an inheritance runs through the succession route and then mutation; see the wider guide to managing India assets as an NRI and, for the transfer itself, NRI property transfer. [VERIFY]
Succession to immovable property in India is governed by Indian law whatever your domicile (Indian Succession Act, 1925, s.5(1)), while succession to movable property generally follows the law of your domicile at death (s.5(2)). Domicile is your permanent home, not simply where you live now, so it should be assessed with advice, and it is a key reason to hold both an India Will and a foreign Will. See the NRI inheritance guide for detail. [VERIFY]
Exiting
Selling and repatriating the proceeds
An NRI can sell residential or commercial property, though the sale of inherited agricultural land carries restrictions on who it can be sold to. On a sale, the buyer is generally required to withhold tax at source, and capital-gains tax applies on the gain; an NRI seller can apply for a lower or nil withholding certificate to avoid over-deduction. Sale proceeds are usually routed through an NRO account and remitted abroad within the applicable annual limit, using a chartered accountant's certificate and Forms 15CA and 15CB. Rates and limits change, so confirm the current position with a professional. [VERIFY all rates and limits against the current FEMA rules and the Income-tax Act, 2025.]
Giving
Gifting property
Property can be gifted by a registered gift deed, which attracts stamp duty. Whether a gift is permitted under FEMA and whether it is tax-free depends on the relationship between the parties and the type of property; agricultural land is treated differently and gifts to non-residents are more restricted. Take specific advice before gifting Indian property to or from an NRI. Related deeds include a gift deed and a conveyance deed. [VERIFY]
Do it right
Common mistakes NRIs make
- Trying to buy agricultural land, which is generally not permitted for an NRI.
- Paying for a purchase in cash or outside banking channels.
- Assuming rental income or a sale is tax-free, or ignoring the tenant's or buyer's withholding duty.
- Overlooking the repatriation limit and the CA certificate / Form 15CA-15CB.
- Giving an open-ended power of attorney that can be misused.
- Dealing with a property whose title or chain of ownership is unclear.
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Ask about your propertyAnswers
India property laws for NRIs: frequently asked questions
Can an NRI buy property in India?
Generally yes, for residential and commercial property, with no usual cap on the number, paid through banking channels. An NRI generally cannot purchase agricultural land, a farmhouse or plantation property. Confirm the current FEMA position before buying.
Can an NRI inherit agricultural land?
Usually yes. An NRI can generally inherit agricultural land, a farmhouse or plantation even though they cannot purchase it, subject to conditions. Onward dealing with such property has its own rules, so take advice before selling or gifting it.
Do NRIs pay tax on rental income in India?
Yes, generally. Rental income from Indian property is taxable in India, and the tenant may have to withhold tax at source when paying rent to an NRI. Relief for double taxation may be available under a treaty. Verify the current treatment.
How is an NRI taxed when selling property?
The buyer generally withholds tax at source and capital-gains tax applies on the gain. An NRI seller can obtain a lower or nil withholding certificate so tax is deducted closer to the real liability. Confirm the current rates with a chartered accountant.
How much can an NRI repatriate from a property sale?
Sale proceeds are generally repatriated through an NRO account within an annual limit, using a chartered accountant's certificate and Forms 15CA and 15CB. The exact limit changes, so confirm it with your bank and a CA.
Can an NRI manage property without being in India?
Yes. Many NRIs act through a trusted representative under a properly drafted and, where needed, registered power of attorney. Because a PoA over property can be misused, scope it carefully and give it only to someone you trust.
Can two NRIs own property jointly?
Generally yes, subject to the FEMA rules on acquisition. Joint ownership affects how the property is later transferred or inherited, so it should be planned alongside your Will. Verify the current position for your situation.
Next step
Get it right for your Indian property
Make an India Will for your property, plan with NRI succession advisory, and set up a power of attorney to act from abroad. If you have inherited property, see NRI estate administration.
Reviewed by Dr. Deepak Jain, CTEP, CWM
Founder and Managing Director, NexGen Estate Planning Solutions; Co-founder and Director, AAFM India. Written by the NexGen Content & Research Team and reviewed for legal accuracy. NexGen has helped 3,000+ families, including NRIs, structure and transfer wealth across generations.
- Foreign Exchange Management Act, 1999 and the rules on acquisition and transfer of immovable property in India by non-residents. [VERIFY current rules.]
- Income-tax Act, 2025 — taxation of rental income and capital gains, and withholding on rent and on the sale of property by a non-resident. [VERIFY rates and thresholds.]
- Repatriation via the NRO route, with a chartered accountant's certificate and Forms 15CA/15CB. [VERIFY the annual limit.]
- Registration Act, 1908 and state stamp Acts — registration and stamp duty on purchase, gift and sale deeds. [VERIFY state rates.]
Content reviewed by Dr. Deepak Jain, CTEP, CWM — 23 July 2026.