NRIs (Non-Resident Indians) frequently ask whether they can buy plots in India — and the answer is yes, with important caveats. The rules are governed by FEMA (Foreign Exchange Management Act) and RBI guidelines. This guide covers what NRIs can and cannot buy, how to make the payment, tax implications, and which cities offer the best NRI investment opportunities in 2026.
What NRIs Can Buy in India
Under FEMA guidelines, NRIs can purchase the following types of property in India without prior RBI permission:
- Residential plots in approved layouts (RERA-registered, with NA conversion)
- Residential apartments and independent houses
- Commercial plots and office units in approved commercial zones
- Shops and commercial units in approved commercial complexes
What NRIs CANNOT Buy
NRIs are not permitted to purchase the following, regardless of payment method:
- Agricultural land (farming land)
- Plantation property
- Farmhouses (as defined under state agricultural land rules)
This is a hard restriction — state governments occasionally advertise "farmhouse plots" which technically may be residential plots in agricultural zones. Verify the exact land use category before any payment.
How NRIs Must Pay for Property
Payment for property in India must be made through specified channels:
- Remittance from abroad through normal banking channels (SWIFT transfer to Indian bank account, then payment to developer)
- Funds held in NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts in India
- FCNR (Foreign Currency Non-Resident) account funds
Cash payments are not permitted. Payments must be traceable through the Indian banking system for repatriation eligibility later.
Tax Implications for NRIs
At purchase: Stamp duty and registration charges apply — rates vary by state (Gujarat: 4.9%, UP: 7%, Haryana: 7%, Rajasthan: 6.3% for women buyers). No additional tax at purchase for NRIs beyond what Indian residents pay.
On sale (capital gains): Long-term capital gains (LTCG) tax of 12.5% applies on gains from property held more than 24 months (post-July 2024 budget). Short-term capital gains are taxed at slab rates. TDS (Tax Deducted at Source) at 20% + surcharge + cess is deducted by the buyer when an NRI seller sells property — NRIs must file an Indian tax return to claim refund if actual tax is lower.
Repatriation: Amount repatriable is limited to original purchase price paid via NRE/FCNR funds. LTCG proceeds may be fully repatriated subject to prescribed limits and with a CA certificate (Form 15CA/15CB).
Power of Attorney for NRIs
NRIs who cannot be physically present in India for registration can execute a Power of Attorney (POA) in favour of a trusted person (family member, lawyer). The POA must be notarised and apostilled in the country of residence, then adjudicated in India before use. For property registration specifically, some states require the NRI to be present for the sub-registrar signing — confirm with a local lawyer for the specific state.
Best Cities for NRI Plot Investment in 2026
Dholera, Gujarat — Semiconductor Capital
Dholera is particularly popular among Gujarat-origin NRIs from the UK, USA, UAE, and East Africa. The city has strong NRI investment interest due to Gujarat connection, RERA-verified projects with clear documentation, and the semiconductor-industrial growth story. Plot prices in the Activation Area start from ₹40L — accessible for NRIs across income levels.
Ayodhya, Uttar Pradesh — Ram Mandir City
UP-origin NRIs and Hindus globally have strong interest in Ayodhya following the Ram Mandir inauguration. The airport is operational, making site visits practical. UP RERA provides the legal framework.
Vrindavan, Uttar Pradesh — Vaishnava Devotee Investment
NRI buyers from communities with Vaishnava traditions (Gujarat, Rajasthan, UP, East Africa Gujarati diaspora) are active buyers in Vrindavan. MVDA + UP RERA approved projects provide the regulatory clarity NRIs need.
Neemrana, Rajasthan
NRIs with industrial investment interest or Rajasthani roots find Neemrana's Japan IMT story compelling. RIICO-approved residential plots have clear title chains and regulatory standing.
Practical Checklist for NRI Buyers
- Verify RERA registration in the relevant state portal before any payment
- Confirm the property is not agricultural land
- Use NRE or NRO account for payment — keep all remittance records
- Engage a local lawyer for title search and POA if needed
- Register with a CA for tax filing guidance — Form 15CA/15CB required for repatriation
- Visit the site in person if at all possible before finalising — a single trip saves significant verification uncertainty
Saurabh has worked with NRI buyers from the UK, UAE, USA, and Canada. All projects listed on SmartCityPlots are RERA verified with documentation shared upfront. NRI-specific paperwork guidance is available — contact via WhatsApp for personalised assistance with your specific country of residence and preferred city.
