Many people living abroad want to buy a home or a plot in India, whether for family, investment or an eventual return. The good news is that the rules for non-resident Indians (NRIs) and overseas citizens of India (OCIs) are fairly open for ordinary property. The catch is that some categories are closed, and the way you pay and the way you sell have rules of their own. This is a general guide, not advice for your case.
Who counts as an NRI or OCI
An NRI is an Indian citizen who lives outside India under the conditions set by law. An OCI is a person of Indian origin who holds another country’s citizenship and has been registered as an Overseas Citizen of India. Both groups are treated alike for most property purposes, but check the current rules for your status because they depend on your residence and on foreign-exchange regulations.
What you can generally buy
- Residential property such as flats, houses and apartments.
- Commercial property such as shops and offices.
- Residential or commercial plots in cities and towns.
No special permission from the Reserve Bank is usually needed for these purchases, though you must follow the rules on how the money moves and which documents are required.
What you generally cannot buy
NRIs and OCIs are generally not allowed to buy agricultural land, plantation property or a farmhouse. You can, however, inherit such property, and you may be able to gift or sell it to a resident Indian. If you want land in the countryside, the options are limited and need professional advice. Our guide to buying agricultural land explains the wider rules that apply even to resident buyers.
How to pay
Payments for property are expected to go through normal banking channels, from your NRE, NRO or FCNR account or from funds sent from abroad. Cash payments are not permitted, and the bank record is important later if you want to sell and move the money out. Keep every transfer receipt together with the sale deed.
Documents and process
The legal steps are the same as for a resident buyer: check the title, the encumbrance certificate and the revenue records, pay stamp duty, register the deed and update the records. If you cannot be present, you can appoint someone to act for you through a power of attorney, but this carries real risk. The power of attorney should be properly drawn, signed and attested according to the rules of the country where you sign it, and registered or authenticated as required in India. Use a trusted lawyer and limit the powers it grants. See our document checklist for what to verify.
Costs
Stamp duty and registration fees are the same as for residents, and the other costs in our total-cost checklist also apply. Remember to budget for currency movements, which can raise or lower the real cost of the purchase between the day you agree the price and the day you pay.
Selling later
This is the area most people forget. When an NRI sells property, the buyer is generally required to deduct tax at source at a higher rate than for a resident seller, and there are limits and conditions on sending the sale proceeds abroad. Capital-gains rules also apply. Plan this at the start by talking to a chartered accountant who understands cross-border rules, because the cheapest time to get the paperwork right is when you buy.
Looking after property from abroad
- Pay property tax and utility bills on time. Set up online payments if the municipality allows it.
- Have a trusted relative or a property-management firm check the property regularly. Empty plots are easy targets for encroachment.
- Fence and mark the boundary, and keep clear photographs with dates.
- Keep all deeds and receipts in both paper and scanned form, stored in more than one place.
Where to start
Use a calculator to see the full cost before you commit. The Plotwise Rules and Laws section includes a view for NRI and OCI buyers, which helps you see what applies to each type of property. Treat it, and every guide you read online, as a starting point, and confirm with a lawyer and a chartered accountant who work with NRI clients.
General information only, not legal, tax or foreign-exchange advice. These rules change; check current regulations before acting.