In short: NRIs and OCI cardholders can buy residential and commercial property in India, but not agricultural land, plantations or farmhouses (they can inherit them). When an NRI sells, the buyer must deduct TDS on the capital gain, which a lower-deduction certificate can reduce. Sale money can be taken abroad from an NRO account, up to USD 1 million per financial year, with the tax forms. A tenant or caretaker in an empty property is the biggest risk, so keep written agreements and visit or check regularly.
Buying property as an NRI
- Pay from an NRE, NRO or FCNR account, or by inward remittance; cash and foreign currency notes are not allowed.
- Do a title check before paying. See property title verification.
- Registration can be done by a power of attorney holder in India. See power of attorney.
- Home loans for NRIs are available from Indian banks, repaid from NRE/NRO accounts.
Selling property as an NRI
The full process, step by step, is in selling property in India from abroad; for property inherited from parents, see inherited property.
- TDS: the buyer must deduct tax at the rates applying to non-residents on the capital gain. Apply to the income tax department for a lower or nil deduction certificate if the actual tax is less.
- Capital gains: exemptions are available for reinvestment in residential property or specified bonds, as for residents.
- Repatriation: sale proceeds go into the NRO account; up to USD 1 million per financial year can be remitted abroad with Form 15CA and a chartered accountant's certificate (15CB). Proceeds of property bought with foreign money can be repatriated for up to two residential properties.
Renting out and protecting your property
- Use a registered lease or a written leave and licence agreement, with police verification of tenants.
- Rent to NRIs is subject to TDS by the tenant.
- Keep the property tax and mutation in your name, and visit or have someone check regularly.
- If someone occupies it unlawfully, act within six months. See illegal possession.
Questions people ask
Can an NRI buy agricultural land in India?
No. NRIs and OCI cardholders cannot buy agricultural land, plantation property or farmhouses, but can inherit them.
How much TDS is deducted when an NRI sells property?
The buyer deducts tax at the non-resident rate on the capital gain, plus surcharge and cess. A lower-deduction certificate from the income tax department can reduce it to the actual liability.
How can an NRI send property sale money abroad?
Through the NRO account, up to USD 1 million per financial year, with Form 15CA and a CA's certificate in Form 15CB, after paying tax.
Can an NRI sell inherited property in India?
Yes, after the inheritance is documented (probate, succession or mutation as needed), and repatriate the proceeds within the USD 1 million yearly limit.
Can an OCI cardholder buy property in India?
Yes, on the same terms as NRIs: residential and commercial property, but not agricultural land, plantations or farmhouses.
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Become a ClientCall +91 81001 21141This guide gives general information about the law in India as on 11 November 2026. It is not legal advice for your situation, and reading it does not create a lawyer-client relationship. Rules and limits change; please take advice on your own facts.