Key takeaways
- Foreign nationals (non-OCI) can't buy Indian property — only inherit it or lease up to 5 years.
- NRIs and OCIs can buy homes and commercial property, but not agricultural land.
- NRIs and OCIs can repatriate up to USD 1 million a year from NRO accounts after tax.
Who can buy what
| You are | Homes & commercial property | Agricultural land, plantations, farmhouses |
|---|---|---|
| NRI (Indian citizen abroad) | Yes — buy freely | No (inheritance only) |
| OCI cardholder | Yes — buy freely | No (inheritance only) |
| Foreign national living outside India (not OCI) | No — only by inheritance from a person resident in India; leases up to 5 years allowed | No |
| Citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan (not OCI) | Needs prior RBI permission, wherever resident (except leases up to 5 years) | No |
A foreign company can hold property in India through an Indian subsidiary for its business, or through a branch office for permitted activities — see doing business in India.
How NRIs and OCIs pay
- Only through normal banking channels — inward remittance or NRE / NRO / FCNR accounts. No payment in foreign currency to the seller in India.
- Home loans from Indian banks are available to NRIs and OCIs.
Tax while you own it and when you sell
- Rent is taxable in India, with TDS deducted by the tenant.
- On sale, the buyer deducts TDS — often far more than the final tax; a lower-deduction certificate (Form 128) helps. Since 1 October 2026, resident individual and HUF buyers can deposit this TDS using their PAN through Form 141, without getting a TAN. See TDS on property sale by an NRI and the capital gains calculator.
Taking the money out
- Sale proceeds of up to two residential properties bought with foreign money can be repatriated under the rules.
- Otherwise NRIs and OCIs can repatriate up to USD 1 million per financial year from their NRO account after tax, with Forms 145 and 146 (formerly 15CA/15CB). See NRO repatriation.
Sources
Frequently asked questions
Can a foreigner buy property in India?
Generally no. A foreign national living outside India who is not an OCI can acquire Indian property only by inheritance from a person resident in India, though leases of up to five years are allowed. OCIs and NRIs can buy residential and commercial property.
Can OCI cardholders buy property in India?
Yes — residential and commercial property, freely. They cannot buy agricultural land, plantation property or farmhouses except by inheritance.
Can NRIs buy agricultural land in India?
No. NRIs and OCIs can't buy agricultural land, plantations or farmhouses; they can only inherit them.
How much money can an NRI repatriate from India?
Up to USD 1 million per financial year from the NRO account, after tax, supported by Forms 145 and 146; balances in NRE accounts are fully repatriable.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.