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How Can An NRI Buy A Property In Kerala?

How Can An NRI Buy A Property In Kerala?

Can a Non-Resident Indian, or an NRI as is popularly known, buy property in Kerala? This question seems to be in everyone’s minds these days. With the boom of real estate builders in Kerala, we can find that many NRIs who have left India is looking to buy residential or commercial property here.

Shedding a green light on their investment decision is the Reserve Bank of India’s guidelines that enable NRIs to buy and hold properties in Kerala as long as it does not fall under the prohibited list. What is that prohibited list you wonder? We will get to that as we look into the various aspects to be kept in mind by an NRI while buying a property in Kerala.

How Can An NRI Buy A Property In Kerala? Things To Note!


Type Of Property

The major factor to keep in mind while an NRI buys residential or commercial property in Kerala is to ensure that the said property does not fall under the prohibited list by the RBI. The prohibited list includes:

  • Agricultural land
  • Plantation
  • Farmhouse

It is also to be noted that an NRI cannot receive such property from relatives or friends as a gift either.

However, an NRI seeking to hold or buy any of the aforementioned properties may obtain approval from RBI, who may grant the same on a case-to-case basis if they deem so via the approval route.


To make sure your property purchase transaction goes as smoothly as possible, it is vital to ensure that you have all the necessary documents in place. The requisite documents for purchasing a residential or commercial property in Kerala include but not limited to:

  • Address Proof
  • PAN Card
  • Passport
  • Photographs

Without any of the above documents, it would not be possible for an NRI to buy any residential or commercial property in Kerala.

Power Of Attorney

A Power of Attorney (POA) is a very crucial piece of document which is vital for executing a purchase agreement. An NRI, through any lawyer in Kerala, can execute a POA on behalf of their agent or relatives/friends to empower them to act on behalf of the NRI in matters related to purchasing a property in Kerala. In other words, only a person holding a valid POA can do all such acts and deeds in connection with the purchase of property on behalf of an NRI

Repatriation Of Funds

The term repatriation of funds means conversion of foreign currency to one’s local currency. When an NRI wishes to purchase property in Kerala he will have to convert his foreign currency into Indian National Rupee (INR) to execute the transaction. While doing so, he has to keep the following points in mind:

  • The NRI/PIO should have bought the property as per the FEMA directives that are applicable at the time of buying the property.
  • The funds being repatriated should not exceed the original investment if the payment was done by way of foreign exchange remittance through normal Indian banking channels or from funds held in FCNR (B) accounts.
  • NRI should carry out all transactions in Indian currency and should also have an account with any of the Indian banks to transact funds in connection with the purchase of property

Tax Benefits

The Government of India allows various tax benefits to NRIs who are looking to purchase a property in India. An NRI is exempted from paying taxes when they purchase a property in India. They only need to pay stamp duty and registration fees like all other citizens of India.

However, if they wish to sell their property in India, they need to pay long-term capital gains tax or short-term capital gains tax.

So these are all that you need to know as you buy a property in Kerala. If you are an NRI looking to settle down, Kerala has the best options for you. Check out the villa for sale in Angamaly, Thrissur, Thiruvananthapuram, Calicut, and other prominent locations.

Deals so good, you cannot afford to miss them.

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