30-SECOND ANSWER
An NRI or OCI can generally purchase residential and commercial property in India.
But the general permission does not extend to agricultural land, a farmhouse or plantation property. How you pay also matters: RBI requires payment through permitted banking channels / eligible non-resident accounts.
First question: what are you buying?
🏠 Flat / house / residential propertyGenerally permitted for an NRI/OCI under the applicable FEMA framework.
🏢 Commercial propertyGenerally permitted.
🌾 Agricultural landDo not treat this like an ordinary residential purchase. General purchase permission for an NRI/OCI does not cover agricultural land.
🌴 Plantation property / farmhouseAlso outside the general purchase permission.
“But I know NRIs who own farmland and plantations.”
Owning agricultural property and purchasing it after becoming an NRI are not the same question.An NRI/OCI can legally own agricultural land, plantation property or a farmhouse in some situations — most importantly through permitted inheritance. But RBI's current framework does not give an NRI/OCI the general permission to purchase these categories.
They inherited itRBI's current FAQ permits an NRI/OCI to acquire any immovable property by inheritance from a resident, and also from a non-resident who had acquired it in accordance with the applicable foreign-exchange law.
They bought it before becoming non-residentA person may already own the property from the period when they were resident in India. Their later change of residential status does not mean the original purchase was an NRI purchase.
They may actually have been resident under FEMA when they bought it“Works abroad” and “person resident outside India under FEMA” should not be treated as identical labels without checking the facts.
Or the transaction may need closer legal examinationThe fact that a registration occurred, or that other NRIs appear to have bought similar land, does not by itself prove that the acquisition complied with FEMA.
Farmland: ask “How did I acquire it?”
Purchase as NRI/OCI → Not covered by the general permission.
Gift to NRI/OCI → The general gift permission also excludes agricultural land, plantation property and farmhouse.
Inheritance → Can be permitted under RBI's conditions.
Already owned before becoming NRI → Review the original acquisition and current FEMA position; do not confuse continued ownership with a fresh NRI purchase.
State land laws can impose additional restrictions independently of FEMA.
Second question: how will you pay?
Permitted routes includeFunds received in India through banking channels by inward remittance from outside India, or funds held in permitted non-resident accounts such as NRE/FCNR(B)/NRO, subject to the applicable rules.
Don't pay casuallyRBI's property rules do not permit payment through travellers' cheques, foreign-currency notes or an unapproved mode.
Third question: what happens when you eventually sell?
Buying the property and taking the sale money abroad later are two different questions.Repatriation depends on how the property was acquired, how the purchase was funded, the type of property, taxes and the applicable FEMA conditions. So if future repatriation matters to you, preserve the original banking trail from day one.
Before paying the booking amount, check these 6 things
✓ Is the property legally residential/commercial, or does the land classification create a FEMA issue?
✓ Who exactly will own it — you alone, jointly with an NRI/OCI spouse, or with someone else?
✓ Which account / overseas remittance will fund the purchase?
✓ Have title, approvals, encumbrances and local legal issues been independently checked?
✓ What Indian taxes/TDS/stamp duty/registration obligations apply to this transaction?
✓ If you sell later, do you expect to keep the money in India or repatriate it abroad?
A common mistake
“I'm an Indian citizen, so I can buy any land in India even though I live abroad.”Not necessarily. FEMA residential status matters. RBI's current rules specifically distinguish agricultural land, farmhouse and plantation property from ordinary residential/commercial property for NRI/OCI purchase.
Verify the rule yourself
Last verified: 17 August 2026. Property title, state land law, taxation, inheritance and FEMA are different layers. Obtain appropriate legal/tax advice before a material property transaction.
The property may look attractive. Is the transaction structure right?
Tell Amrutha what you want to buy, who will own it, how you plan to fund it and whether you may need the money abroad later.
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