- OCI cardholders can buy residential and commercial property.
- Agricultural land, plantations and farmhouses cannot be bought or received as a gift.
- Gifts of other property from relatives are allowed; inheritance of any property is allowed.
- PIO cards were merged into OCI in 2015.
On this page
- Can OCI buy property in India: the rules
- Can OCI buy and sell property in India?
- What about PIO cardholders?
- Foreign citizens without OCI
- Do OCI holders pay more tax or stamp duty?
- Can an OCI hold property bought before becoming a foreign citizen?
- Selling and repatriation for OCIs
- OCI or NRI: any difference for property?
- How must an OCI pay?
Can OCI buy property in India: the rules
| Property | Buy | Gift from relative | Inherit |
|---|---|---|---|
| Residential or commercial | Yes | Yes | Yes |
| Agricultural land, plantation, farmhouse | No | No | Yes |
Can OCI buy and sell property in India?
Yes. An OCI can sell residential or commercial property to residents, NRIs or other OCIs. Inherited agricultural land can be sold only to a resident Indian citizen. The buyer deducts tax at source on the sale.
What about PIO cardholders?
The PIO card scheme was merged into OCI in 2015, and PIO cards were converted to OCI. Former PIO holders should hold an OCI card to rely on these rights.
Foreign citizens without OCI
A foreign citizen of Indian origin without an OCI card generally cannot buy property in India, except in limited cases such as inheritance. Getting an OCI card is usually the simplest route. See OCI application.
Do OCI holders pay more tax or stamp duty?
No. Stamp duty and registration charges are the same as for residents. Rent and capital gains are taxed in India, with tax deducted by tenants and buyers at the rates that apply to non-residents if the OCI holder is not resident for tax purposes.
Can an OCI hold property bought before becoming a foreign citizen?
Yes. Property acquired while an Indian citizen and resident can continue to be held. If it includes agricultural land, it can be held and later sold only to a resident Indian citizen.
Selling and repatriation for OCIs
Sale proceeds go to the NRO account. Where the purchase was paid from NRE or FCNR funds, the amount paid in foreign exchange can be repatriated for up to two residential properties; otherwise, the annual NRO limit of USD 1 million applies, with the required forms.
OCI or NRI: any difference for property?
For buying, holding and selling residential and commercial property, OCI cardholders are treated like NRIs. The difference is citizenship: an OCI holder is a foreign citizen, so their country's tax and reporting rules on foreign property also apply.
How must an OCI pay?
Through banking channels or NRE, FCNR or NRO accounts, as for NRIs. See buying property with an OCI card for the practical steps.
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
