What NRIs and OCIs Can Buy, Inherit and Repatriate Under FEMA: A Plain Guide

Gifts and inheritance

• Gift: you can receive a flat or office as a gift from a person resident in India, or from an NRI or OCI who is a "relative" as defined in the Companies Act, 2013.
• Inheritance: you can inherit from a resident, or from a non-resident who acquired the property legally under the rules at the time.

Selling and taking the money out

• You can sell to a resident Indian. You can sell to another NRI or OCI too, except farmland, plantation property or a farmhouse.
• Repatriation of sale proceeds is allowed if you bought the property under the rules and paid in foreign exchange through banking channels or from NRE/FCNR(B). Home loan EMIs paid from abroad or from NRE/FCNR(B) can count as foreign exchange.
• For residential property, repatriation under this route is limited to not more than two properties.

My practical advice

• Keep the bank trail for every payment: remittance advices, NRE statements, loan statements.
• Before selling, read repatriating sale proceeds and lower TDS certificates.

Frequently asked questions

Can an OCI buy a flat in Mumbai?

Yes. NRIs and OCIs can buy any immovable property in India except agricultural land, plantation property and farmhouses.

How many properties can an NRI repatriate sale proceeds for?

For residential property, repatriation under the RBI rules is limited to not more than two properties, subject to how they were paid for.

Sources

• RBI Master Direction: Acquisition and transfer of immovable property under FEMA
• Rustomjee: Can an OCI inherit property in India?

This is general information, not legal or tax advice. Rules change, so check your own case with a lawyer or CA.

Own a flat in Mumbai, Thane or Navi Mumbai? Book a call and tell me what you are dealing with.

Warmly,
Yanik