NRI Advisory
NRI & OCI Guide to Buying Pre-Leased Commercial Property in India (FEMA & Repatriation)
Everything Non-Resident Indians (NRIs) and OCIs need to know about FEMA permissions, NRE/NRO routing, rental repatriation, and TDS compliance.
By VantageProp Research Desk · · 1 min read
Quick answer
- Under RBI & FEMA regulations, NRIs and OCIs can freely purchase any number of commercial properties (offices, retail, warehouses) in India—only agricultural land/plantations are restricted.
- Rental income earned from commercial properties is 100% repatriable abroad after payment of applicable Indian income tax and CA Form 15CB/15CA certification.
- Purchases can be executed seamlessly via Registered Specific Power of Attorney (PoA) if the NRI investor cannot travel to Mumbai or Pune for registration.
RBI & FEMA Rules for NRI Commercial Acquisitions
NRIs (Indian citizens residing abroad) and OCI (Overseas Citizen of India) cardholders enjoy general permission from the Reserve Bank of India (RBI) to purchase commercial properties in India. No prior RBI approval is required. Acquisition funds must be routed through banking channels via NRE, NRO, or FCNR(B) accounts, or through direct inward remittance.
Repatriation of Rental Income & Sale Proceeds
Pre-leased commercial assets are a favorite among global NRIs in the US, UAE, UK, and Singapore because Indian commercial yields (8.5%–9.5%) far exceed residential yields while providing steady passive cashflow:
- Current Income (Rentals): Freely repatriable from both NRE and NRO accounts without any monetary cap, subject to tax deduction at source (TDS) and Form 15CA/15CB.
- Sale Proceeds Repatriation: Up to USD 1 Million per financial year from NRO accounts (and full repatriation of initial foreign currency principal if acquired via NRE/FCNR funds).
- Power of Attorney Execution: An NRI can adjudicate a Specific Power of Attorney at the Indian Embassy/Consulate abroad to complete property registration and tenant attornment.
Frequently asked questions
Can NRIs buy commercial property in India?
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Yes. NRIs and OCI cardholders have general RBI permission to buy any number of commercial properties without prior approval. Only agricultural land and plantations are restricted.
Can NRIs repatriate rental income from Indian property?
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Yes. Rental income is fully repatriable from NRE and NRO accounts after applicable tax, with Form 15CA/15CB. Sale proceeds from NRO accounts can be repatriated up to USD 1 million per financial year.
Can an NRI buy property in India without travelling?
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Yes. A Specific Power of Attorney executed at an Indian embassy or consulate abroad can be used to complete registration and tenant attornment.