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FEMA Guidelines
Complete 2025 Guide
Foreign Exchange Management Act regulations for NRIs
Last Updated: 2025-01
What is FEMA?
Foreign Exchange Management Act regulates foreign exchange transactions in India. NRI property transactions must comply with FEMA guidelines.
Permitted Transactions
Purchase of residential/commercial property, receipt of rental income, sale proceeds repatriation (up to 2 properties), and inheritance of any property type.
Repatriation Rules
Sale proceeds can be repatriated for up to 2 residential properties. Amount limited to foreign exchange brought in or USD 1 million per financial year.
Prohibited Transactions
Purchase of agricultural land, plantation, or farmhouse. Transfer of property to non-resident (except by way of gift or inheritance).
Important Warnings
- Maximum repatriation of USD 1 million per year
- Form 15CA/15CB required for repatriation
- Maintain proof of original investment source
- Report foreign assets in tax returns