In short
An OCI cardholder has the same property rights as an NRI: he or she may buy, sell, receive as a gift or inherit property in India, except that agricultural land, a farmhouse or plantation property cannot be bought. A foreign citizen who is not of Indian origin and lives abroad may take a lease of up to five years or inherit from a resident, and needs RBI permission for anything else. These are central FEMA rules and apply in every state; the stamp duty, registration and land records that follow are state matters.
OCI cardholders
The OCI Services FAQ (Government of India) says that an OCI cardholder may engage in “purchase or sale of immovable properties other than agricultural land or farm house or plantation property”, on a par with NRIs, and that the cardholder “cannot acquire agricultural land or farmhouse or plantation properties in India”. The Embassy of India in Qatar states the same and adds that OCI cardholders can rent out their properties in India.
The RBI Master Direction treats the OCI together with the NRI throughout paragraph 3: purchase, gift from a relative (as defined in section 2(77) of the Companies Act, 2013), inheritance and sale. For the full list, read NRIs buying property in India.
Two cautions for OCI holders living in Canada:
- The RBI’s remittance texts name “NRIs/PIOs”. The Master Direction on Remittance of Assets uses those words for the USD 1 million facility. Ask your authorised dealer bank to confirm in writing how it treats your OCI card before you plan a transfer; see repatriating sale proceeds.
- Your tax position follows residence, not the card. Under section 6 of the Income-tax Act, 2025 an individual is resident in India if present for 182 days or more in the tax year, or 60 days plus 365 days in the four preceding years. For a citizen of India or a person of Indian origin who visits India, section 6(4) and (5) replaces the 60 days with 120 days where Indian income (other than foreign-source income) exceeds ₹15 lakh. See rental income tax for NRIs.
Foreign citizens who are not of Indian origin
The RBI FAQ, question 4, states that foreign nationals of non-Indian origin resident outside India “can acquire/transfer immovable property in India on lease not exceeding five years and can acquire immovable property in India by way of inheritance from a resident”. Anything else needs the prior permission of the RBI.
A foreign national who is resident in India is treated differently. Paragraph 10 of the Master Direction ties residence to staying more than 182 days in the preceding financial year and to a visa that shows an intention to stay for an uncertain period, backed by documents. Read paragraph 10 in full, or ask an authorised dealer bank, before relying on this route.
Citizens of listed countries
Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong and the Democratic People’s Republic of Korea need the prior permission of the RBI to acquire or transfer immovable property in India, except on a lease of up to five years, “irrespective of their residential status”. The restriction does not apply to an OCI.
Other categories
| Person | What the RBI text allows |
|---|---|
| Spouse (not an NRI or OCI) of an NRI or OCI | One property, not agricultural, jointly with the NRI or OCI spouse; the marriage registered and subsisting for at least two years (Master Direction para 4) |
| Citizen of Afghanistan, Bangladesh or Pakistan from a listed minority community, on a long-term visa | One residential property for self-occupation and one for self-employment; sale only after acquiring Indian citizenship (Master Direction section 5) |
| Foreign embassy, diplomat or consulate | May buy or sell property other than agricultural land, plantation property or farmhouse, with Ministry of External Affairs clearance and payment from funds remitted through banking channels |
What differs by state
The RBI rules above are central. The state decides everything that follows the right to buy: stamp duty and registration charges (stamp duty calculator), circle rates (circle rate and guidance value), and the land records in which you are entered as owner (mutation of property records). Agricultural land is also regulated by state land laws, which Payotte has not compiled; do not treat a purchase of farmland by a relative or through a power of attorney as lawful without legal advice.
What it costs
No fee for OCI status appears in the property rules read. Cost depends on the state’s stamp duty and registration charges and on bank charges.
Which professional to consult
A property lawyer (advocate) enrolled with the State Bar Council can confirm whether a particular transaction needs RBI permission and can read the title; see property lawyer. An authorised dealer bank handles the foreign exchange side. A chartered accountant can advise on tax in India and Canada.
Frequently asked questions
Can an OCI buy a flat or a shop?
Yes. Residential and commercial property are open to an OCI cardholder, subject to payment through banking channels.
Can an OCI inherit agricultural land?
The RBI FAQ lists inheritance as covering “any immovable property” from a person who acquired it under the laws in force, or from a resident. The OCI Services FAQ speaks only of acquiring (buying). Ask a property lawyer about the state land law that applies.
Can a Canadian citizen without an OCI card buy a home in India?
Not without RBI permission, unless resident in India under the conditions in paragraph 10. From abroad, only a lease of up to five years or inheritance from a resident is open.
Does the restriction on Chinese or Pakistani citizens apply to an OCI?
No. The RBI states that the prior-permission requirement for the listed countries does not apply to an OCI.
Can an OCI rent out a property?
Yes, according to the Embassy of India, Qatar. Rental income is taxable in India; see rental income tax for NRIs.
More guides on nris and ocis
- Home loans for NRIs and OCIs: the RBI rules
- India-Canada tax treaty and Indian property
- NRI selling property in India: capital gains and TDS
- NRIs buying property in India: what is allowed
- Paying for property from NRE, NRO or FCNR(B) accounts
- Power of attorney from Canada for property in India
- Rental income from India: tax for NRIs and OCIs
- Sending sale proceeds abroad: NRI repatriation rules
Sources
- Master Direction: Acquisition and Transfer of Immovable Property under FEMA (RBI) (consulted 14 October 2026)
- FAQ: Purchase of Immovable Property (RBI) (consulted 14 October 2026)
- OCI Services: FAQ (Government of India) (consulted 14 October 2026)
- Property Related Matters of NRIs/OCI card holders in India (Embassy of India, Qatar) (consulted 14 October 2026)
- FAQ: Accounts in India by Non-residents (RBI) (consulted 14 October 2026)
- Income-tax Act, 2025 (Gazette of India) (consulted 14 October 2026)