RBI Guidelines for NRI Investment in Real Estate

NRIs can invest in residential and commercial properties. Agricultural land, farmhouses, and plantations are restricted unless inherited or gifted.

Property Types Permitted

NRIs don't need special permission to buy property. They must adhere to general FEMA regulations for property transactions.

No Special Approvals Required

Payments must be made via non-resident external (NRE), non-resident ordinary (NRO), or foreign currency non-resident (FCNR) accounts, using Indian banking channels.

Payment Method

NRIs can repatriate sale proceeds for two residential properties. Compliance with RBI limits and FEMA is mandatory for fund repatriation.

Repatriation of Funds

NRIs must pay taxes like resident investors. Capital gains tax applies to property sales, and rental income is also taxable.

Taxation and Compliance

NRIs can use a POA for property transactions in India, ensuring smooth processes like registration, execution, and maintenance.

Power of Attorney (POA)

Essential documents include a valid passport, PAN card, and proof of address abroad. These ensure smooth property purchase or sale processes.

Document Requirements