India buying guideWho you are decides what you can buy in India. Non-resident Indians can buy homes and commercial property, but not farmland, plantations or farmhouses. Foreign nationals of non-Indian origin face tighter limits, and mistakes carry penalties of up to three times the property value. This India property buying guide separates the groups and explains the process. See stock on our India page.
Three categories, three sets of permissions
NRIs and OCI cardholders. Under the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India's directions, a non-resident Indian or an Overseas Citizen of India can buy residential and commercial property without prior RBI approval. They cannot buy agricultural land, plantation property or a farmhouse. Inheritance and gifts from resident relatives are the standard exceptions, and resale of such land is restricted to Indian residents.
Foreign nationals not of Indian origin. Sources agree these buyers are far more restricted. Non-resident foreigners generally cannot buy Indian property except by inheritance from a resident, and foreigners who become resident in India may acquire property subject to conditions. Nationals of certain neighbouring countries need special RBI permission. Details have varied over time, so confirm with an Indian lawyer or chartered accountant.
Resident foreigners. Someone who has lived in India long enough to count as resident under FEMA may buy one residential property, subject to conditions.
The penalty for getting this wrong is serious: a court upheld a fine of three times the purchase price on an OCI cardholder who bought farmland in 2024. Registrars are being told to check eligibility before registering sales.
Buying step by step
- Confirm status. Establish whether you are an NRI, OCI cardholder or foreign national, and your residential status under FEMA.
- Pick the city and builder with care. Check RERA registration for any project, which lists approvals, timelines and the developer's track record on the state RERA website.
- Verify title. Your lawyer examines the chain of documents for 30 years, gets an encumbrance certificate, checks mutation records and confirms land use.
- Agreement to sell. Sets price, schedule and conditions, with a token or earnest sum.
- Pay through banking channels. NRIs pay from NRE, NRO or FCNR accounts, or by inward remittance. Cash is not acceptable.
- Sale deed and stamp duty. The deed is executed and registered at the sub-registrar's office.
- TDS and compliance. Buyers purchasing from an NRI seller must deduct tax at source at higher rates, and buyers need to file the proper forms.
- Mutation and utilities are transferred to your name.
Power of attorney is widely used by overseas buyers, but should be limited and registered, and checked for current validity.
Costs that vary by state
India has no single national transfer tax. States set their own stamp duty and registration charges, so a flat in one city can cost several percentage points more to register than an identical flat in another.
| Cost | Typical level | Notes |
|---|---|---|
| Stamp duty | Approx. 4 to 8% of value, state-set | Some states charge less for women buyers |
| Registration fee | Around 1%, sometimes capped | State-set |
| GST on under-construction homes | About 5%, or 1% for affordable housing | Not on completed units with occupancy certificate |
| Legal and title search | Fixed fee or small percentage | Essential |
| Broker | Approx. 1 to 2% | Negotiable |
| Property tax | Municipal, annual | Varies by city |
| TDS on purchase from NRI seller | Higher withholding rate | Applies when you buy from an NRI |
Money in, money out
NRIs fund purchases from inward remittances or NRE and NRO accounts. Repatriation of sale proceeds has limits: the standard route allows up to one million US dollars per financial year from NRO balances with proper certificates, and sale proceeds of up to two homes can be repatriated. Check the current rules with your bank.
Indian banks lend to NRIs against property, normally up to a percentage of the price, with rates linked to the repo rate. Foreign nationals not resident in India have far fewer lending options. Our India financing guide explains what is available, and the mortgage calculator helps test repayments.
What to buy and what to avoid
Format matters more here than in most markets. Apartments in RERA-registered projects are the safest entry for an overseas buyer. Villas and houses in gated communities are common, but check the land classification. Commercial property is open to NRIs and OCIs. Land is where most restrictions bite: residential plots are fine, farmland is not, and farm-style plots marketed to NRIs may be agricultural in the revenue record.
State laws add another layer. Some states restrict agricultural land purchases to farmers, and zoning can change from agricultural to residential only through formal conversion.
For market context see our India analysis, and for lower-cost options the cheap and under 100k pages.
Mistakes that lead to penalties or lost money
- Buying a 'farmhouse' or plantation as an NRI or OCI.
- Paying builders in cash or to personal accounts.
- Skipping the RERA check.
- Using a broad power of attorney that stays valid for years.
- Ignoring state variations in stamp duty when comparing cities.
- Not planning for repatriation before you buy.
When comparing destinations, see the consultation index and the countries directory.
Last updated 8 October 2026
Frequently asked questions
Can an NRI buy property in India?
Yes, residential and commercial property, without prior RBI approval. NRIs cannot buy agricultural land, plantations or farmhouses, except by inheritance or gift from a resident relative.
Can OCI cardholders buy farmland?
No. OCI holders are treated like NRIs for this purpose and the bar on agricultural land, plantations and farmhouses applies. A court upheld a heavy penalty on an OCI buyer in 2024.
Can a foreigner who is not of Indian origin buy a home in India?
Non-resident foreigners are generally restricted to inheritance, and residents may buy under conditions. Rules differ for some countries, so get written advice from an Indian lawyer.
What are the main costs of buying?
State stamp duty of roughly 4 to 8%, registration fees of around 1%, and GST on under-construction homes. Legal and broker fees come on top.
Can I repatriate sale proceeds?
NRIs can usually repatriate up to a set annual limit from NRO accounts with proper documentation, and proceeds from up to two residential properties. Rules are specific, so check with your bank.
How do I check a project is safe?
Look it up on the state RERA site for registration, approvals and complaint history, and have a lawyer verify title and encumbrances.