NRI Property Laws in Kerala 2026 — FEMA Rules, Restrictions & Rights
NRIs, PIOs, and OCIs have specific rights and restrictions when it comes to buying, selling, and inheriting property in India. This guide covers FEMA regulations, RBI guidelines, permitted property types, repatriation rules, and key compliance requirements for NRI property ownership in Kerala.
Who Can Buy Property in India?
- NRI (Non-Resident Indian): Indian citizen residing abroad — can buy residential and commercial property freely
- OCI (Overseas Citizen of India): Same rights as NRI for property purchase
- PIO (Person of Indian Origin): Can buy residential and commercial property
- Foreign nationals: Cannot buy property in India (except by inheritance)
What Property Can NRIs Buy in Kerala?
- ✅ Residential property — apartments, villas, houses
- ✅ Commercial property — offices, shops, warehouses
- ✅ Plots (residential & commercial)
- ❌ Agricultural land — NOT permitted (except by inheritance)
- ❌ Plantation property — NOT permitted (except by inheritance)
- ❌ Farmhouses — NOT permitted
FEMA Rules for NRI Property Purchase
- No RBI approval needed for permitted property types
- Payment must be through NRE/NRO/FCNR account or inward remittance
- Cannot pay in foreign currency directly or via traveller’s cheques
- No limit on number of properties an NRI can own
- Power of Attorney (POA) can be used for transactions done from abroad
Repatriation of Sale Proceeds
- Up to USD 1 million per year can be repatriated from NRO account
- Property purchased with NRE/FCNR funds: full repatriation allowed
- Requires Form 15CA/15CB (CA certificate) for repatriation
- TDS: Buyer must deduct TDS at 20% (LTCG) or 30% (STCG) on sale
NRI Property Tax in Kerala
- Long-term capital gains (held >2 years): 20% with indexation
- Short-term capital gains (held <2 years): taxed at slab rate
- TDS on sale: Buyer deducts at source
- NRIs can claim exemption under Section 54 (reinvestment in property)
Related: NRI Property Tax Guide → | NRI Tax Planning Guide →
Inheritance of Property by NRIs
- NRIs can inherit any type of property including agricultural land
- No RBI approval required for inheritance
- Repatriation of inherited property proceeds: up to USD 1 million/year
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Property Type Guides
- NRI Property Investment Hub
- Apartments | Villas | Plots | Commercial
- Beachfront Property | Under-Construction
- Property Legal Guide | Property Tax Guide
City-Specific Property Guides
Kochi | Trivandrum | Kozhikode | Thrissur | Malappuram | Kannur
Country-Specific Guides
UAE | Saudi Arabia | Qatar | Kuwait | Oman | UK | USA | Canada | Australia | Germany
Related Blog Articles
- NRI Home Loan — Rates & Eligibility
- NRI Home Construction Loan Guide
- NRI Plot Purchase Loan Guide
- Loan Against Property Guide
- NRI Banking — NRE vs NRO vs FCNR
- NRI Tax Planning — FEMA & Capital Gains
- NRI Family Relocation Guide
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⚠️ Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Consult a FEMA-qualified lawyer for specific transactions. Blueberry is a financial services facilitator. RBI · FEMA · ASCI compliant.