What FEMA actually allows
An NRI or OCI can generally purchase residential and commercial property in India under the general permission FEMA grants, without needing separate RBI approval. What's off the table by direct purchase is agricultural land, plantation property, and farmhouses — those can typically only come to an NRI by inheritance or gift from someone otherwise entitled to hold them, not by buying them outright.
Funding the purchase correctly
Payment has to be made through normal banking channels, or from balances in an NRE, NRO, or FCNR(B) account — not through cash brought in informally. Which account the money comes from also affects repatriation later, which is where this checklist tends to matter most: proceeds funded through an NRE account or foreign inward remittance are generally easier to repatriate than proceeds sitting in an NRO account, which carries a specified annual cap on outward remittance.
The title checks that matter, regardless of who's buying
Being an NRI doesn't change what actually protects a buyer: a title search tracing ownership back through the chain of prior transactions, an encumbrance certificate confirming there's no registered mortgage or charge against the property, and a check for pending litigation. An NRI buyer is often less able to visit the property or the Sub-Registrar's office in person, which makes these checks — done by someone who can actually verify the physical records — more important, not less.
Using a power of attorney
Because an NRI often can't be present for every step, a power of attorney to a trusted representative in India is common — for inspecting the property, executing documents, and attending registration. Where it's executed outside India, it typically needs to be notarized and apostilled (for Hague Convention countries) or attested by the Indian consulate before an Indian Sub-Registrar will act on it.
Registration and what comes after
The sale deed still has to be registered under the Registration Act, 1908, and stamp duty still has to be paid at the applicable state rate — being an NRI doesn't create an exemption from either. Post-purchase, mutation in the local municipal or revenue records matters just as much for an NRI-owned property as any other — an un-mutated property becomes genuinely hard to manage or sell remotely later.
Repatriating the money later
If the property is later sold, repatriating the proceeds abroad is permitted subject to FEMA's conditions — generally capped at the amount originally paid in foreign exchange for up to two residential properties, with a separate annual limit applying to remittances from an NRO account. This is exactly the kind of rule that's much easier to plan for before the purchase than to untangle after the sale.
Frequently asked
Can an NRI buy agricultural land in India?
Generally no, not by direct purchase. Under FEMA, an NRI can typically only acquire agricultural land, plantation property, or a farmhouse by inheritance, not by buying it outright — a restriction that surprises many buyers who assume residential-property rules apply across all property types.
Does an NRI need RBI permission to buy a flat or an office in India?
No — purchasing residential or commercial property in India is covered under the general permission granted to NRIs and OCIs under FEMA, and doesn't need specific RBI approval, provided the payment is made through normal banking channels or from NRE/NRO/FCNR account balances.
Can sale proceeds be repatriated outside India?
Yes, subject to conditions and monetary limits under FEMA — generally up to the amount originally paid in foreign exchange for the property (through an authorised channel), and capped at a specified amount per financial year for repatriation from balances in an NRO account, which is where the distinction between how the original purchase was funded actually matters.
Should an NRI use a power of attorney for a property purchase in India?
Often, yes, purely for practical reasons — a power of attorney lets a trusted representative in India handle registration, inspection, and paperwork the NRI can't attend to in person. It needs to be drafted carefully and, where executed abroad, typically notarized and apostilled (or attested by the Indian consulate) before it will be accepted by the Sub-Registrar in India.