- Property bought while resident, including agricultural land, can be kept after becoming an NRI.
- There is no limit on the number of residential or commercial properties an NRI owns.
- Rent goes to an NRO account, with tax deducted by the tenant.
- Agricultural land held from before can be sold only to a resident Indian citizen.
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Can NRI own property in India bought before moving abroad?
Yes. FEMA allows a person who becomes non-resident to continue holding property acquired while resident. This includes agricultural land, plantations and farmhouses, which an NRI could not buy fresh.
How many properties can an NRI own in India?
There is no limit for residential or commercial property. The limit of two residential properties applies only to repatriating sale proceeds of property bought with foreign exchange.
Renting out property as an NRI
- Use a registered rent or leave and licence agreement.
- Rent goes to your NRO account.
- The tenant deducts tax on rent paid to a non-resident.
- Give a limited power of attorney for management.
Selling property as an NRI
Residential and commercial property can be sold to residents or NRIs. Agricultural land held from before can be sold only to a resident Indian citizen. The buyer deducts tax at source; see TDS on sale by NRI.
Managing property from abroad
Most NRIs appoint a relative or manager under a specific power of attorney limited to renting, collecting rent and dealing with the society. Pay property tax every year, keep receipts, and check the land or municipal records periodically so that no one quietly changes them.
What happens if you return to India?
When you become resident again, your NRE and NRO accounts are redesignated as resident accounts, and the FEMA restrictions on acquiring agricultural land no longer apply. Property already owned is unaffected.
NRI property repatriation limit
Proceeds through the NRO account can be remitted up to USD 1 million per financial year with the required forms. See also joint property with a resident.
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
