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Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) represent over 15% of high-ticket luxury real estate investments across Delhi-NCR, Mumbai, and Bengaluru. Understanding statutory Reserve Bank of India (RBI) parameters prevents compliance penalties. ### 1. Permitted Real Estate Acquisitions Under FEMA Under Foreign Exchange Management Act (FEMA) directives: * **Permitted:** NRIs/OCIs can acquire unlimited numbers of residential and commercial immovable properties. * **Prohibited:** NRIs cannot purchase agricultural land, plantation properties, or farmhouses unless acquired via ancestral inheritance. ### 2. Banking Channels: NRE vs NRO vs FCNR All real estate consideration must flow through formal inward banking remittances: * **NRE (Non-Resident External) Account:** Denominated in INR, fully repatriable without upper ceiling. * **NRO (Non-Resident Ordinary) Account:** Suitable for funds originating inside India (e.g., rental yields, pensions, dividends). Repatriable up to $1 Million USD per financial year with Form 15CA/15CB tax clearances. * **Cash payments are strictly illegal** and subject to Section 269SS/T statutory penalties. ### 3. Repatriation of Sale Proceeds When an NRI sells an Indian property: * The original capital remitted from overseas into up to two residential units can be repatriated without upper limits. * Capital appreciation (profits) can be remitted via the $1 Million annual scheme after applicable Long-Term Capital Gains (LTCG) tax deduction at source (TDS under Section 195).

NRI Property Buying in India (2026): FEMA Rules, NRE/NRO Banking, Repatriation & Capital Gains

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