Can NRIs buy property in India?

What the Law Says

The Foreign Exchange Management Act (FEMA) and RBI guidelines govern property purchases by Non-Resident Indians (NRIs) in India. These rules distinguish between permissible and prohibited property types and outline conditions for acquisition, funding, and repatriation.

Under FEMA, NRIs are permitted to acquire immovable property in India — except agricultural land, plantation property, or a farmhouse — without requiring prior permission from the Reserve Bank of India.

Funds for purchase must be remitted through normal banking channels or from NRE, FCNR(B), or NRO accounts. Sale proceeds of up to two residential properties can be repatriated, subject to conditions.

Gifts of property from Indian residents or other NRIs are allowed, and no gift tax applies if the donor is a relative as defined under the Income Tax Act.

Statutory Text

A person resident outside India, who is a citizen of India or a person of Indian origin, may acquire any immovable property in India other than agricultural land, plantation property or a farmhouse.

— Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000, Regulation 6(1)

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