Can NRIs Buy Property in Multiple Cities Simultaneously? A Complete Legal Guide

One of the most common questions from the Indian diaspora is also one of the most misunderstood. Can an NRI buy property in more than one Indian city at a time? The short answer is yes. There is no legal restriction on the number of properties an NRI can own in India, and no rule preventing simultaneous purchases in different cities. But the full picture involves understanding the specific categories of property NRIs can buy, how payments must be structured, what income tax implications arise, and how property can eventually be repatriated. This guide addresses all of those dimensions.

For real estate purposes, the relevant definition comes from the Foreign Exchange Management Act, or FEMA, rather than income tax law. An NRI under FEMA is an Indian citizen who resides outside India. A Person of Indian Origin, or PIO, who holds a foreign passport (except Pakistani or Bangladeshi) is treated similarly for most property transactions. Both categories can buy property in India under broadly the same framework.

NRIs can freely purchase residential and commercial properties in India without seeking any prior approval from the Reserve Bank of India. There is no cap on the number of such properties. An NRI can simultaneously purchase a flat in Mumbai, a villa plot in Hyderabad, and an apartment in Bengaluru, and all three transactions are legally permissible.

The categories where restrictions apply are agricultural land, plantation property, and farmhouses. NRIs cannot purchase these types of property without specific RBI permission. This restriction is firm and has not been relaxed in recent policy updates. If an NRI inherits agricultural land from an Indian relative, they can hold it but cannot make a fresh purchase.

This is where many NRI buyers encounter their first complications. All payments for property purchases in India must be made through legitimate banking channels. The funds must flow from an NRI's NRE account, NRO account, or FCNR account held with an Indian bank. Payments in foreign currency through unofficial channels or in cash are not permitted under FEMA.

Payments can also come from home loan disbursals from Indian banks, which NRIs are eligible to obtain. The loan repayment must then come from funds in an Indian bank account.

For simultaneous purchases in multiple cities, the NRI needs to ensure that each transaction is separately documented and funded through appropriate banking channels. There is no rule that prevents multiple transactions happening in the same quarter or even the same month.

Owning multiple properties in India creates income tax considerations that NRIs must understand clearly. If an NRI owns more than two properties in India, all properties beyond the first two are deemed to generate notional rental income under Indian income tax law, even if they are not actually rented out. This notional income is taxed at the applicable slab rate.

Where properties are actually rented out, the actual rental income is taxable in India after a standard deduction. TDS is deducted at source by the tenant at 31.2 percent on rent paid to NRIs. The NRI can then claim the TDS credit when filing their Indian income tax return.

When an NRI eventually sells a property in India, the proceeds can be repatriated subject to certain conditions. Repatriation of up to USD one million per financial year is permitted without specific RBI approval, provided the purchase was made with inward remittances or funds from NRE or FCNR accounts. The property must have been held for the period required under capital gains rules.

For multiple properties, each repatriation is subject to the same per-year limit. If an NRI is selling multiple properties simultaneously, they may need to plan repatriation over more than one financial year.

Managing property across multiple Indian cities while residing abroad requires either trusted local representatives or professional property management services. Power of attorney documents need to be carefully drafted and notarised in the country of residence before being used in India. Each city may have different stamp duty rates, registration procedures, and RERA compliance requirements.

NRIs should engage a property lawyer familiar with FEMA and income tax law, and a tax consultant who understands both Indian and the relevant foreign country's tax treaty provisions.

NRIs can legally buy property in multiple Indian cities simultaneously under FEMA regulations, with no restriction on the number of residential or commercial properties they can own. Payments must flow through NRE, NRO, or FCNR accounts. Owning more than two properties triggers notional rental income tax on the additional properties. Repatriation of sale proceeds up to USD one million per year is permitted subject to conditions. Professional legal and tax guidance is essential when managing multi-city property portfolios from abroad.