Key takeaways
- NRIs and OCIs generally cannot buy agricultural land, plantation property or farmhouses in India.
- Inheritance, and land bought while you were resident, are the usual exceptions.
- Rules change and cases differ, so get advice for your own situation before paying.
- We share documents with your adviser first, and never use a power of attorney to get around the rules.
It is one of the first questions we hear from Indians living abroad: can I buy a farm plot near Bangalore? The honest answer is that the rules are strict, they depend on your residential status, and you should get advice for your own situation before you pay anything. This article explains the general position in plain English, so you can have a better conversation with your adviser.
Who counts as an NRI?
For property, what matters is your residential status under the Foreign Exchange Management Act (FEMA), which is not the same test as for income tax. Broadly, a person who has gone abroad for work, business or an indefinite stay is treated as a person resident outside India. Overseas Citizens of India (OCIs) are foreign citizens and have their own rules. Your adviser should confirm which category you fall into.
Good to know
Your status for FEMA and your status for income tax can be different in the same year. Ask your adviser to check both.
At a glance: what NRIs and OCIs can usually buy
General position only. Your adviser must confirm your case.
What the rules generally say
Property purchases by NRIs and OCIs are governed by FEMA and the rules made under it. In general:
What NRIs and OCIs can usually buy
- Residential property, such as a flat or house
- Commercial property, such as an office or shop
- Agricultural land
- Plantation property
- Farmhouses
- Inheritance: agricultural land can generally be inherited from a resident.
- Bought while resident: land acquired while you were a resident Indian can usually be held after you move abroad.
Rules change, and individual circumstances vary, so treat this as background, not advice.
Check your situation
This short helper shows which general rule is likely to apply. It is not legal advice.
Where do you stand?
What about a family member buying?
Some families consider having a resident relative buy the land. If the land is bought in a resident’s name, it belongs to that person, with everything that implies. Get advice on ownership, tax and succession before you decide, and avoid any informal arrangement that puts the land in one name while the money and expectations sit with another.
Be careful
Power-of-attorney deals that leave land in someone else’s name while an NRI pays for it are risky and may not be valid. We do not sell land this way.
If you return to India
Residential status can change. If you move back to India and become resident for FEMA purposes, the restrictions on buying agricultural land as an NRI generally stop applying to you, although state rules on who can buy agricultural land still do. Many families plan a farm purchase around a return home for this reason. Ask your adviser when your status is likely to change and what records you will need to show it.
A clean paper trail
- Adviser confirms eligibility
- Documents reviewed
- Bank transfer from your account
- Registered deed
- Copies kept safely
How payments and records should look
Whatever you buy, keep the paper trail clean. Payments should go through banking channels, from an account in your name, with receipts that match the sale deed. Avoid cash, and avoid paying a third party on the seller’s behalf. Keep copies of every document, because you or your family may need them when you sell, inherit or change residence.
Staying close to the farm from abroad
- 1Where you liveYour adviser confirms what you may hold before anything else.
- 2Visits homePlan a farm visit around your next trip to India.
- 3UpdatesPhotos and video calls in between visits.
- 4The farmWorked by the team on the ground, every day.
What we do
If you are a non-resident, we will share the project documents with your lawyer or chartered accountant first. We do not proceed with a purchase where your adviser confirms it is not permitted, and we do not use power-of-attorney arrangements to get around ownership rules.
See the farms from wherever you are
Aerial drone tour of GreenX
From our own YouTube channel, @smartagrofarms.
Before you decide
Questions for your adviser
0 / 5All checked. Take this list to your lawyer and your site visit.
Can I visit SmartAgro farms while I am in India?
Can you send documents to my adviser abroad?
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