NRI's are permitted to buy and sell property in India but acquisition and transfer of immovable property by them should be purchased by them should be in accordance with FEMA. Propertry should be purchased through a registered conveyance deed but can also be purchased on power of Attorney. In the latter case, an agreement to sell and a power of attorney are executed by the seller in favour of buyer. However, the same is not formally registered with the office of Registrar and as such no stamp duty is to be paid for the purchase.

NRI's do not require permission of the Reserve Bank of India (RBI) to acquire residential/commercial property in India, as RBI has granted general permission to foreign citizens of Indian origin, whether resident of India or abroad, to purchase immovable property in India for their bonafide residential purpose. However the purchase consideration should be met either out of inward remittances in foreigh exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with bank in India.

Foreign citizens of Indian origin, purchasing residential immovable property in India under the general permission, are required to file a declaration in form IPI 7 with the central Office of RBI at Mumbai within a period of 90 days from the date of purchase of property or final payment of purchase consideration along with the certified copy of document evidencing the transaction and bank certificate regarding the consideration paid.