What NRIs Can Buy Under FEMA
| Property Type | NRI Permission | Payment Mode |
|---|---|---|
| Residential property | Freely — no limit on number | Inward remittance or NRE/NRO funds |
| Commercial property | Freely — no limit on number | Inward remittance or NRE/NRO funds |
| Agricultural land | Requires prior RBI approval | Not applicable without RBI permission |
| Plantation property | Requires prior RBI approval | Not applicable without RBI permission |
| Farmhouse | Requires prior RBI approval | Not applicable without RBI permission |
FEMA Repatriation Rules for NRI Property
| Fund Source | Repatriation Limit | Conditions |
|---|---|---|
| NRE account funds used for purchase | Full proceeds freely repatriable | Repatriation limited to original purchase price paid via NRE/remittance; max 2 properties |
| NRO account funds used for purchase | Up to $1 million per year | Needs Form 15CA/15CB from CA; TDS compliance required |
| Rental income | Up to $1 million per year from NRO | Part of overall $1M annual limit from NRO account |
| Gift or inheritance | Up to $1 million per year | Special RBI approval may be needed above limits |
Form 15CA/15CB is mandatory: When repatriating sale proceeds or rental income from India, the NRI must get their Chartered Accountant to certify the tax compliance via Form 15CB, and the NRI files Form 15CA online before remitting. The bank requires these forms before processing the international transfer. Non-compliance is a FEMA violation.
Related Terms
Frequently Asked Questions
FEMA (Foreign Exchange Management Act, 1999) governs all foreign exchange transactions including property purchases by NRIs. Under FEMA, NRIs can freely buy residential and commercial property in India without any limit on number of properties. Agricultural land, plantation property, and farmhouse require prior RBI permission. Payment must be through inward remittance or NRE/NRO account.
No — not without prior RBI permission. Under FEMA, NRIs cannot purchase agricultural land, plantation property, or farmhouses in India without specific RBI approval. This is a common misconception. If an NRI inherits agricultural land, they can retain it but cannot purchase fresh agricultural land directly.
NRI can repatriate up to the original purchase price if paid via NRE/inward remittance (full repatriation from NRE funds). For proceeds in NRO account, repatriation is limited to $1 million per financial year. CA must issue Form 15CB and the NRI files Form 15CA before remittance. TDS compliance (20% or 30% depending on holding period) must be complete.
Yes. OCI (Overseas Citizen of India) and PIO (Person of Indian Origin) card holders have the same property rights as NRIs under FEMA — they can freely purchase residential and commercial property. The same restriction applies: agricultural land, plantation, and farmhouse require RBI permission for OCI/PIO as well.
FEMA requires NRI property purchase payments to be through: inward remittance from abroad (foreign currency converted to INR), funds from NRE (Non-Resident External) account, or funds from NRO (Non-Resident Ordinary) account. Payment in foreign currency cash or travellers cheques is not permitted. Payments through another NRI's account or a third party are also not permitted.