NRIs and OCI cardholders may freely buy residential and commercial property in India and may sell any property they own. Neither requires a trip to India: a registered power of attorney holder can sign and register the deed on your behalf. On a sale, the buyer must deduct tax at source at non-resident rates, and proceeds can be repatriated within Reserve Bank limits once taxes are paid.
- Can buy
- Residential and commercial
- Cannot buy
- Agricultural land, farmhouse, plantation
- Sale from abroad
- Through registered POA
- Tax on sale
- TDS by buyer at NRI rates
What NRIs and OCIs can and cannot buy
The Foreign Exchange Management (Non-debt Instruments) Rules, 2019 give NRIs and OCI cardholders general permission to acquire any immovable property in India other than agricultural land, a farmhouse or plantation property. There is no cap on the number of properties. Payment must be made in rupees through normal banking channels from an NRE, NRO or FCNR(B) account or by inward remittance; payment in foreign currency notes or travellers cheques is not allowed.
Agricultural land can be received by inheritance and can be sold, but only to a person resident in India who is an Indian citizen. Foreign nationals who are not of Indian origin need prior Reserve Bank approval to buy property, and citizens of certain neighbouring countries face further restrictions. The guide Can an NRI buy agricultural land? covers the exceptions.
Buying: the safe sequence
- Verify first. Commission a title search before paying a token amount.
- Agreement for sale. Record price, payment schedule, possession date, penalties and the seller's warranties. For projects under construction the agreement must be registered and follow the RERA format.
- Tax on purchase. If the seller is a resident you deduct one per cent where the price is fifty lakh rupees or more. If the seller is an NRI you must deduct at the much higher non-resident rates and need a TAN.
- Sale deed and registration. Stamp duty and registration fee are paid at state rates, and the deed is registered before the Sub-Registrar by you or your attorney holder.
- After registration. Apply for mutation, transfer utilities and the society membership, and keep the original deed in safe custody.
Selling: the steps and the traps
Start by putting your own papers in order. Buyers' lawyers will ask for the chain of title, mutation in your name, a no-dues certificate from the society and proof of how the property came to you. Inherited property must first be brought into your name through a will, succession documents or a registered family arrangement.
Tax is the main trap. The buyer is legally required to deduct tax from the price before paying a non-resident seller, and unless you obtain a lower deduction certificate from the Income Tax Department, the deduction is calculated on the whole sale price, not just your gain. Applying for that certificate before signing the agreement can release a large part of the price at closing. Details are on our page about TDS and capital gains.
Insist on payment by bank transfer to your NRO account. Cash components create tax exposure, cannot be repatriated and are a common source of later disputes.
Completing the deal without travelling
You execute a special power of attorney naming the property, the buyer or seller where known, and the price range. Your attorney holder signs the agreement and deed, appears for biometrics and photographs at the Sub-Registrar, and hands over or takes possession. Several states also allow the executant to sign in advance before the Sub-Registrar or through the consulate, and a few are piloting remote registration; we advise on what is available in your state.
Throughout, you approve every draft and every figure before anything is signed in your name.
Taking the money out of India
Sale proceeds are credited to your NRO account. From there you may remit up to one million US dollars per financial year, across all sources, after paying tax and filing Forms 15CA and 15CB through a chartered accountant. Where the property was bought with foreign exchange, proceeds can go to the NRE account up to the amount originally brought in, limited to two residential properties. See repatriation of funds.
Mistakes that cost NRIs time and money
- Signing an agreement to sell before working out the tax the buyer must deduct.
- Accepting part of the price in cash.
- Selling inherited property before mutation and heirship papers are in order.
- Letting the buyer deduct one per cent as if the seller were resident.
A typical situation
A sale planned in the right order
A couple abroad decide to sell their parents' flat. Before listing it, they complete mutation, obtain the society's no-dues letter and compute the capital gain. When a buyer is found, a lower deduction certificate is applied for and the sale deed is scheduled after it arrives. A special power of attorney lets a cousin sign. On the day, the buyer deducts only the certified amount, the balance reaches the NRO account, and the remittance abroad follows within weeks on the accountant's certificate.
Illustration only, based on patterns we commonly see. It is not a real client's case and outcomes depend on the facts.
If you live in...
The Indian law is the same wherever you live. These are the points that differ by where you are.
USA and Canada
US citizens and residents report the sale on their US return with credit for Indian tax; give your CPA the sale deed and tax certificates.
UK and Europe
UK residents are generally liable to capital gains tax on overseas property with relief for Indian tax; the post-April 2025 rules should be checked.
UAE and the Gulf
With no tax at home, Indian tax is your only cost. Getting the deduction certificate right is the entire exercise.
Country pages: UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain
Australia, New Zealand and Asia
Singapore does not tax the gain; Australia generally does for tax residents. Time the sale with your local adviser.
Country pages: Australia, New Zealand, Singapore, Malaysia
Detailed country pages for this service: Buy or Sell Property in India from USA, Buy or Sell Property in India from UK, Buy or Sell Property in India from Australia, Buy or Sell Property in India from New Zealand, Buy or Sell Property in India from Oman, Buy or Sell Property in India from Bahrain, Buy or Sell Property in India from Singapore, Buy or Sell Property in India from Malaysia, Buy or Sell Property in India from Germany
Documents you will need
For a sale. For a purchase we need your KYC and the seller's title papers instead.
- Original title deed and prior chain documents
- Mutation and latest tax receipts
- Society or builder no-objection and no-dues letters
- Encumbrance certificate
- PAN card and passport or OCI card
- Purchase cost proof and improvement bills
- NRO and NRE bank account details
- Inheritance documents, if inherited
How we handle it for you
Pre-sale or pre-purchase review
We check title, identify gaps and estimate tax and transaction costs.
Power of attorney
A transaction-specific POA is drafted, attested abroad and stamped in India.
Agreement and tax planning
We negotiate and draft the agreement, and apply for a lower deduction certificate on sales.
Registration
The deed is executed and registered; possession and originals change hands against payment.
Post-closing
Mutation, tax return and the 15CA/15CB filing needed for repatriation are completed.
Frequently asked questions
Can an NRI sell property in India without going to India?
Yes. A registered special power of attorney lets a trusted person or advocate sign the sale deed, appear before the Sub-Registrar and receive payment into your bank account on your behalf.
How many properties can an NRI buy in India?
There is no limit on the number of residential or commercial properties. The only restriction is on the type: agricultural land, farmhouses and plantation property cannot be purchased.
Does an NRI need a PAN or Aadhaar to sell property?
A PAN is required, both for the sale deed and to claim credit for the tax deducted. Aadhaar is not mandatory for NRIs, though Sub-Registrars may ask for another photo identity such as a passport or OCI card.
How much tax does an NRI pay on selling property in India?
Long-term gains on property held more than two years are taxed at 12.5 per cent plus surcharge and cess; short-term gains are taxed at slab rates. The buyer deducts tax at source, usually on the full price unless you hold a lower deduction certificate.
Can an NRI sell inherited agricultural land?
Yes, but only to a resident Indian citizen. The NRI must first be recorded as owner through mutation based on the will or succession documents.
Can I gift my Indian property to a relative instead of selling?
Yes. An NRI can gift residential or commercial property to a resident, an NRI or an OCI relative by a registered gift deed. Agricultural land can be gifted only to a resident Indian citizen.
Can an NRI sell property to another NRI?
Yes, for residential and commercial property. Payment must be through banking channels in India. Agricultural land can be sold only to a resident Indian citizen.
Can joint owners abroad sell through one power of attorney?
Each owner must authorise the sale. They can sign one joint document or separate ones in favour of the same attorney holder.
