NRI Property Legal Guide Kerala 2026 | FEMA, Title & Registration

Buying property in Kerala as an NRI involves navigating FEMA regulations, title verification, TDS compliance, and registration procedures. This guide provides a comprehensive legal framework for NRI property transactions in Kerala.

FEMA Rules — What NRIs Can Buy

Title Verification Checklist

• ✓ Patta: Verify land ownership document in seller’s name
• ✓ Encumbrance Certificate (EC): Minimum 30 years — check for mortgages, liens
• ✓ Survey sketch: Match with actual field measurement
• ✓ Building plan approval: From local body (Panchayat/Municipality/Corporation)
• ✓ OC (Occupancy Certificate): For completed buildings
• ✓ RERA registration: For under-construction projects
• ✓ CRZ clearance: For coastal and backwater properties
• ✓ Wetland/paddy land check: Verify no restrictions under Kerala Conservation Act
• ✓ Forest/ESZ check: For hill station and plantation properties

Payment & FEMA Compliance

• All payments must be through NRE, NRO, or FCNR account
• Inward remittance from abroad is also accepted
• Cash payments are not permitted
• Maintain clear paper trail of all fund transfers

TDS Rules for NRI Property Transactions

• Buying from resident Indian (value > ₹50L): Deduct 1% TDS, file Form 26QB
• Buying from NRI seller: Deduct 12.5% (LTCG) or 30% (STCG) TDS, file Form 27Q
• NRI seller can apply for lower TDS certificate from Income Tax department

Registration Process

1. Execute sale agreement (stamp duty: 0.1% of value)
2. Pay stamp duty (5–8% of guideline value in Kerala)
3. Execute sale deed before Sub-Registrar
4. Register property — registration fee: 2% of value
5. Update patta in buyer’s name at Village Office

Power of Attorney (POA) for NRIs

• NRIs can execute POA to authorise a trusted person in Kerala
• POA must be notarised in country of residence and apostilled
• Registered POA preferred for property transactions
• POA holder can sign sale deed, register property, and manage transactions

Repatriation of Sale Proceeds

• Up to 2 residential properties’ sale proceeds can be repatriated
• Repatriation limit: Amount originally paid in foreign currency or NRE account
• File Form 15CA/15CB with CA certification before repatriation
• Route through NRO account with bank’s FEMA compliance