NRI guide · updated June 2026
The short answer: NRIs and OCIs have essentially the same property purchase rights in India. Both may buy residential property, commercial property, and residential plots allotted by a development authority such as YEIDA. Neither may buy agricultural land, farmhouses or plantation property — that prohibition is absolute under FEMA and the NDI Rules 2019. A foreign national who is neither an NRI nor an OCI generally cannot buy any immovable property in India without RBI permission. All purchases must be paid in INR through NRE, NRO or FCNR banking channels — not in foreign currency. This guide defines the three categories precisely, walks through the comparison table, covers repatriation and TDS in brief, and explains how Vidastu's plot-and-build offer is fully open to NRIs and OCIs. This is general information, not legal or tax advice — consult your CA and FEMA advisor for your specific situation.
Before the comparison table, the three categories need a precise definition — because the words are used loosely in everyday conversation but carry specific legal meanings under Indian law.
Non-Resident Indian. A person who is an Indian citizen (holds an Indian passport) but is residing outside India. The FEMA residency test: present in India for fewer than 182 days in the preceding financial year (with some nuances for intent of stay). An NRI remains an Indian citizen and can vote, hold an Indian passport, and inherit or own property in India under the same rules as a resident Indian — with FEMA overlays on how the money moves.
Overseas Citizen of India. A person of Indian origin who holds a foreign passport but has been granted OCI status by the Government of India. OCI is not dual citizenship — it is a long-term visa with certain economic, educational and cultural rights. OCIs do not hold Indian passports. For property under FEMA, OCIs are treated on par with NRIs for residential and commercial property, but the same agricultural-land prohibition applies. OCI status is lifelong (for most holders) and passes to children in certain cases.
Foreign national (non-OCI). A person who is neither an Indian citizen nor an OCI — i.e., a person of no Indian origin holding a foreign passport, or a person of Indian origin who has not obtained OCI status. Foreign nationals generally cannot purchase immovable property in India without RBI permission. Leases of up to 5 years are permitted. Exceptions are narrow, case-specific and require regulatory clearance.
The table below summarises the position under FEMA (Foreign Exchange Management Act, 1999) and the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules), as in force in June 2026. It is indicative — consult your FEMA advisor and lawyer for your specific transaction.
| Property type | NRI (Indian citizen abroad) | OCI (foreign passport, Indian origin) | Foreign national (no OCI/NRI) |
|---|---|---|---|
| Residential property (flat, house, villa) | Yes — no RBI permission needed; up to any number of properties | Yes — same as NRI; no RBI permission needed | Generally No — RBI permission required; lease ≤5 yrs permitted |
| Commercial property (office, shop, warehouse) | Yes — no RBI permission needed | Yes — same as NRI; no RBI permission needed | Generally No — RBI permission required; lease ≤5 yrs permitted |
| Residential plot allotted by a development authority (e.g. YEIDA, NOIDA, DUDA) | Yes — specifically permitted under FEMA / NDI Rules as "residential immovable property" | Yes — same as NRI; YEIDA plots are open to OCIs | Generally No — same restrictions as all immovable property |
| Agricultural land | No — explicitly prohibited under FEMA; inherited only under specific conditions | No — same prohibition as NRI; no exceptions for OCI status | No — prohibited; foreign nationals face additional restrictions |
| Farmhouse property | No — explicitly prohibited under FEMA | No — same prohibition as NRI | No — prohibited |
| Plantation property | No — explicitly prohibited under FEMA | No — same prohibition as NRI | No — prohibited |
| Property by inheritance | Conditional — NRIs may inherit any property (incl. agricultural land) from a resident or NRI, subject to FEMA repatriation rules on proceeds | Conditional — OCIs may inherit residential/commercial property from resident or NRI; inheritance of agricultural land by OCIs has additional conditions — consult a lawyer | Conditional — limited inheritance rights; RBI permission often needed for repatriation |
| Property by gift | Conditional — NRIs may receive gifts of residential/commercial property from close relatives; agricultural land gifts face restrictions | Conditional — OCIs may receive gifts of residential/commercial property from NRI or resident Indian; agricultural land gifts are not permitted | Generally No |
The most common category. NRIs and OCIs can buy any number of residential properties in India — flats, independent houses, villas, row houses, builder-floor units — without seeking RBI permission. The restrictions are on the payment channel (NRE/NRO/FCNR, in INR, not foreign currency) and on repatriation (proceeds from sale of more than 2 residential properties funded from NRE may not be fully repatriated without conditions — see repatriation section below).
There is no cap on the number of residential properties an NRI or OCI can own. There is also no requirement that the property be self-occupied — renting it out is permitted, and rental income is repatriable (up to a limit, net of Indian taxes). Consult your CA on rental income tax in India and your country of residence.
NRIs and OCIs can buy commercial property — shops, offices, warehouses, industrial units — with the same freedom as residential property. No RBI permission is needed. Payment must be in INR via NRE/NRO/FCNR channels. Rental yield from commercial property in India is generally higher than residential (6–9% gross in well-located commercial), though liquidity is lower.
This is the category most relevant to Vidastu's clients. A development-authority residential plot — allotted by a government body such as YEIDA (Yamuna Expressway Industrial Development Authority), NOIDA, Greater Noida Industrial Development Authority (GNIDA), or similar — is classified as residential immovable property under FEMA. NRIs and OCIs may therefore buy these plots on the same basis as residential property.
The YEIDA residential plot schemes (the RPS series) are explicitly open to NRI and OCI applicants. The allotment process involves an application, a draw of lots, instalment payments in INR from an NRE/NRO account, and registration at the sub-registrar's office. A Power of Attorney can handle the India-side steps if you cannot travel. See our YEIDA Plot Scheme 2026 guide →
NRIs/OCIs may purchase residential and development-authority-allotted residential plots (not agricultural land, farmhouses or plantations) under FEMA / the NDI Rules, 2019, with payment through NRE/NRO/FCNR banking channels. Repatriation, TDS and documentation rules apply. Please consult your CA / FEMA advisor for your specific case.
To expand: the NRE account (Non-Resident External) holds funds you earn abroad — it is in INR, freely repatriable, and the principal and interest are tax-free in India. Funding a property purchase from an NRE account means the proceeds on sale are also repatriable (within limits). The NRO account (Non-Resident Ordinary) holds India-sourced income — rent, dividends, sale proceeds of existing assets — and is repatriable up to USD 1 million per financial year net of applicable taxes. The FCNR account (Foreign Currency Non-Resident) holds funds in foreign currency and can be used for property payments after conversion to INR. Never make payments in cash or via hawala — this is a FEMA violation with serious penalties.
FEMA and the NDI Rules explicitly prohibit NRIs and OCIs from buying three categories of property. These are not discretionary restrictions that can be worked around — they are statutory prohibitions with criminal penalties for violations:
The prohibition on NRI/OCI purchases of agricultural land predates FEMA — it reflects India's land reform policy goals of preventing concentration of agricultural land in the hands of non-residents, maintaining food security, and protecting the rural economy. These policy objectives have remained constant across successive FEMA amendments. The prohibition on farmhouses and plantations follows the same logic — farmhouses often sit on land with agricultural classification, and plantations have their own strategic classification.
There is no route around this prohibition for NRIs or OCIs — not through a company, not through a trust, not through a Power of Attorney. If an adviser suggests you can buy agricultural land by routing through an Indian company, be extremely cautious: the RBI has issued clarifications that FEMA applies to beneficial ownership, not just direct ownership. Consult a FEMA specialist immediately if you have been advised otherwise. This is not legal advice.
This is the main genuine exception. An NRI or OCI can inherit agricultural land, a farmhouse or a plantation from a resident Indian or from an NRI — provided the original owner was permitted to hold it under FEMA / the Foreign Exchange Regulation Act (FERA) before FEMA came into force. If you inherit such property, you may hold it. The restrictions are on: (a) repatriation of proceeds from selling inherited agricultural land — this requires RBI permission; and (b) OCIs inheriting agricultural land — the position is that OCIs can hold inherited agricultural land but the repatriation and transfer rules are more restrictive. Get specialist FEMA legal advice before you sell inherited agricultural land. This is general information, not legal advice.
When you sell a residential or commercial property in India, how much can you take back abroad? The basic rule under FEMA:
When you (as an NRI or OCI) sell property in India, the buyer is required to deduct Tax Deducted at Source (TDS) before paying you the sale consideration:
You can apply to the Income Tax department for a lower or nil TDS certificate (Form 13) if your actual tax liability is lower than the standard TDS rate — this avoids locking up large sums and waiting for a refund. DTAA (Double Taxation Avoidance Agreements) between India and your country of residence may reduce the effective tax rate — confirm with your CA. Consult your CA / FEMA advisor before selling — do not rely on this page for tax planning.
Vidastu Developers Pvt. Ltd. is a Greater Noida-based real estate developer and UP-RERA registered agent (UPRERAAGT000309/01/2026), operating since 2012. Founder Vidit Kaushik (BITS Pilani civil engineer) and co-founder Ravi Shankar Sharma (30+ years construction and Vastu) lead the firm. Vidastu holds a 4.8-star average across 54 Google reviews, with a client base that is predominantly NRI.
Vidastu's core NRI offer — a YEIDA residential plot + remote turnkey construction — is fully open to both NRIs and OCIs because:
Neither NRIs nor OCIs need RBI permission for this transaction. There is no prohibition, no grey area on property classification, no agricultural-land risk — YEIDA plots are statutory development-authority allotments for residential use.
See the full Plot + Build offer → Talk to the NRI desk →
Yes — with an important distinction. An OCI can buy residential plots allotted by a development authority such as YEIDA, NOIDA, or similar statutory bodies, because these are classified as residential immovable property under FEMA / the NDI Rules 2019. An OCI can also buy residential flats, houses and commercial property. However, an OCI cannot buy agricultural land, farmhouse property or plantation land. Payment must be in INR through NRE/NRO/FCNR banking channels. This is general information, not legal advice — consult your CA and FEMA advisor.
No. Agricultural land, farmhouse property and plantation land are explicitly prohibited for both NRIs and OCIs under FEMA / the NDI Rules 2019. This prohibition is absolute — OCI status does not create an exception. The only route to holding agricultural land as an OCI is through inheritance, subject to conditions and limited repatriation rights. If you are considering a purchase that involves any land that could be classified as agricultural, consult a FEMA specialist and an Indian lawyer before proceeding. This is not legal advice.
Under FEMA and the NDI Rules 2019, NRIs and OCIs enjoy essentially the same property purchase rights: both may buy residential and commercial property, and development-authority-allotted residential plots; both are prohibited from buying agricultural land, farmhouses and plantation property. The key structural difference is identity: an NRI holds an Indian passport and is a non-resident under FEMA; an OCI holds a foreign passport but is of Indian origin and holds OCI status. Both must pay in INR through NRE/NRO/FCNR accounts. Repatriation rules are broadly similar but can differ in detail based on tax residency and applicable DTAA. Consult your CA and FEMA advisor for your specific situation.
Generally no — not without RBI permission. A foreign national who is not an NRI or OCI cannot purchase immovable property in India under FEMA. Lease of immovable property not exceeding 5 years is permitted. Certain limited exceptions exist (inherited property, special RBI approval) but these are narrow and case-specific. If you are a foreign national without NRI or OCI status considering Indian property, consult a FEMA-specialised lawyer before proceeding. This is general information, not legal advice.
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