In one paragraph
Yes. Under FEMA / the NDI Rules 2019, NRIs and OCIs can buy residential property and development-authority-allotted residential plots (like YEIDA plots) and build on them — but not agricultural land, farmhouses or plantations. Pay in INR through your NRE/NRO/FCNR account (no cash), use a Power of Attorney to sign remotely, and you're protected by RERA escrow on registered projects. Below: accounts, PoA, repatriation, TDS — in plain English.
This is general information, not legal/tax advice — please consult your CA / FEMA advisor.
60-second check · FEMA-grounded
Can you buy from abroad? Run your own eligibility & POA-readiness check.
Answer four things and get a plain, FEMA-grounded reading: what you’re allowed to buy, which account the money may come from, how a Power of Attorney gets you there without a flight, and where your CA actually has to weigh in. It runs entirely in your browser — nothing you type is sent anywhere unless you choose to send it.
Your personalised FEMA verdict and POA-readiness checklist appear here — the enabling answer first, with the primary source on every rule.
What an NRI/OCI can and cannot buy
Allowed (no prior RBI approval needed when paid through banking channels):
- Residential property — apartments, houses, villas
- Residential plots, including development-authority-allotted plots such as YEIDA scheme plots
- Commercial property — offices, shops
There is no cap on the number of properties you may buy.
Not allowed: agricultural land, farmhouses and plantation property. (You may only acquire these by inheritance, or as a gift from a resident Indian relative.)
NRE vs NRO vs FCNR — which account to use
All purchase and construction payments must be made in INR through banking channels — cash is not permitted.
- NRE (Non-Resident External): funded from foreign earnings, fully repatriable. Best for repatriation flexibility.
- NRO (Non-Resident Ordinary): a rupee account; repatriation of property proceeds is capped at USD 1 million per financial year.
- FCNR (B): a foreign-currency term deposit; treated like NRE for property payments.
Stage-wise construction payments are simply serviced from the same NRE/NRO account via NEFT/RTGS.
Power of Attorney — buying & building remotely
A Special Power of Attorney (SPoA) lets a trusted person in India sign documents, make payments and complete registration for that specific transaction. The authentication step depends on where you live:
- Hague-convention countries (USA, UK, Canada, most EU): get an Apostille on the notarised PoA.
- Gulf countries (UAE, Saudi, Qatar, Oman, Bahrain, Kuwait): get Indian Embassy/Consulate attestation instead.
Send the original (wet-ink) PoA by secure courier; in India it may need adjudication/stamping before use. Prefer a Special (not General) PoA limited to your transaction.
Repatriation — getting your money back out
- Bought with NRE/FCNR funds: sale proceeds are freely repatriable for up to two residential properties; no per-year cap for those.
- Bought with NRO/rupee funds: repatriation is capped at USD 1 million per financial year (aggregate); above that needs RBI approval.
- You will need Form 15CA (your declaration) and Form 15CB (a Chartered Accountant's certificate) for the remittance.
Your authorised-dealer bank processes the transfer once documents are complete.
TDS & tax when you sell
- Long-term (held > 24 months): TDS 12.5% (effective 23 July 2024) plus surcharge and 4% cess.
- Short-term (≤ 24 months): TDS 30%.
- TDS is typically deducted on the entire sale consideration, not just the gain — unless you obtain a Lower/Nil Deduction Certificate (Form 13, Section 197) in advance. This matters a lot on a large sale.
- DTAA relief can reduce double taxation — furnish a Tax Residency Certificate (TRC) and Form 10F.
- When you buy from a resident seller over ₹50 lakh, 1% TDS (Section 194-IA) applies — the buyer's duty.
RERA — how your money is protected
For RERA-registered projects, the promoter must keep at least 70% of buyer funds in a project-specific escrow account (RERA Act, Section 4(2)(l)(D)), withdrawable only for that project's land and construction against verified completion. UP RERA also handles buyer complaints and delay compensation.
This is process protection and recourse — not an absolute guarantee of completion. Always verify a project's registration number at up-rera.in.
Buying & building remotely — step by step
- Define the goal — investment, a future home, or both; budget & timeline.
- Shortlist a plot — sector, size and due-diligence (allotment letter, dues, title).
- Set up money — NRE/NRO account ready; arrange the PoA (apostille/consulate).
- Purchase — token, agreement, registration completed by your representative.
- Design & approvals — finalise design over video; sanction the plan.
- Build — milestone payments matched to verified progress; video updates each stage.
- Handover — snag-free handover, documents and mutation.