How Much Can a Resident Indian Send Abroad to Buy Property?
What you need to know
- LRS limit: USD 250,000 per financial year per resident individual
- Family members can each use their own limit, but cannot simply pool separate individual limits for one property beyond their own entitlement
- TCS of 20% applies on remittance amounts above the annual threshold (Rs 10 lakh from FY 2025-26) - fully adjustable against final tax liability
- Must comply with the FEMA (Overseas Investment) Rules 2022 in addition to the LRS Master Direction
- Cannot be used to remit to FATF non-cooperative countries
Who this applies to: resident buyers
Official / primary source: rbi.org.in (government source)
The law behind it
Liberalised Remittance Scheme (LRS) - USD 250,000 per Year for Resident Individuals
A resident Indian (including a minor, through a guardian) can send up to USD 250,000 abroad every financial year for allowed purposes, including buying a house or flat overseas. This is the main legal route for Indians investing in property abroad.
Master Direction - LRS, FED Master Direction No. 7/2015-16 · in force · source
RBI Master Direction on Acquisition and Transfer of Immovable Property under FEMA
This is RBI's consolidated rulebook that banks use day-to-day to process NRI, OCI and foreign national property transactions. It is updated periodically to reflect changes in the underlying NDI Rules 2019, so banks and buyers should always check the latest version on the RBI website.
Master Direction No. 12/2015-16 (as updated) · amended · source
Repatriation of Sale Proceeds from NRO Account - USD 1 Million per Financial Year
An NRI or OCI can send abroad up to USD 1 million per financial year out of their NRO account balance, which includes money from selling property in India. This needs a Chartered Accountant's certificate confirming all applicable taxes have been paid.
Master Direction on Remittance of Assets, RBI/FED/2015-16/6 · in force · source
Repatriation of Sale Proceeds Limited to Two Residential Properties
If an NRI originally bought property using foreign exchange sent from abroad, they can repatriate the full sale proceeds (not just up to USD 1 million) for at most two residential properties. Beyond that, the same USD 1 million per year NRO ceiling applies.
RBI Master Direction No. 12/2015-16, para 8.4 · in force · source
Work out your own numbers
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This page summarises CAPGAIN's law library entry finance-regulatory-faq-resident-buying-abroad. It is general information for India, not advice on your facts. Where a point says something is not yet confirmed, treat it as open and check the latest notification.