Guide for buyers living in India
Buying property abroad from India
Rules last checked 30 October 2026 · 6 official sources · Education, not financial, tax, legal or immigration advice.
What a buyer living in India meets before and after buying a home abroad: sending the money out, tax at home on the rent and the sale, and the forms to file.
The three things to know
- Sending money abroad
India lets a resident individual remit up to USD 250,000 a financial year under the Reserve Bank of India's scheme, which lists buying a home abroad as a permitted use, and tax is collected at source at 20 percent on amounts above INR 10 lakh for such a purpose.
- Tax at home
India taxes a resident on income from abroad, taxing a long term gain on property held more than 24 months at 12.5 percent without indexation, and foreign tax paid is claimed as relief in Schedule FSI and Schedule TR.
- Reporting at home
A resident lists foreign assets, including a home abroad, in Schedule FA of the return for the calendar year in which they were held, and reports foreign income in Schedule FSI; a not ordinarily resident need not complete Schedule FA.
Sending money abroad
A limit
- Rule
Authorised dealers may freely allow remittances by resident individuals of up to USD 250,000 per financial year (April to March) for any permitted current or capital account transaction or a combination of both; a larger amount needs the Reserve Bank's prior permission.
- Limit
250,000 USD per financial year (April to March)
No restriction found
- Rule
Acquisition of immovable property abroad is listed among the permissible capital account transactions of an individual under the scheme, to be carried out in line with the Foreign Exchange Management (Overseas Investment) Rules, Regulations and Directions, 2022.
A limit
- Rule
The limit of USD 250,000 also includes remittances for current account purposes such as private visits, gifts, studies and medical treatment abroad, so one limit covers all uses in the same year.
- Limit
250,000 USD per financial year (April to March)
A report
- Rule
The remitter must give a Permanent Account Number and Form A2 through a designated authorised dealer branch, and the dealer checks the source of funds, for example from the previous year's bank statement or the latest tax return or assessment order.
A restriction
- Rule
The scheme is not available to companies, partnership firms, Hindu undivided families or trusts, and not for capital account remittances to countries identified by the Financial Action Task Force as non cooperative.
A report
- Rule
Foreign exchange received, realised or unspent from an investment made under the scheme must be repatriated and surrendered to an authorised person within 180 days of receipt, realisation, purchase or acquisition, or of the return to India, unless reinvested.
A report
- Rule
Tax collected at source applies to remittances under the scheme above INR 10 lakh in a financial year: the Finance Bill 2026 explanatory memorandum shows a rate of 20 percent for purposes other than education or medical treatment, unchanged by that Bill.
- Limit
1,000,000 INR per financial year
- From
1 April 2026
For buying a home abroad
- Rule
Acquisition of immovable property abroad is a permitted capital account use under the Liberalised Remittance Scheme, inside the same USD 250,000 yearly limit and subject to the 2022 Overseas Investment Rules.
Tax at home
An individual is resident in India if present for 182 days or more in the tax year, or for 60 days or more in the year plus 365 days or more in the preceding four years, and these tests are unchanged under the Income Tax Act 2025; special tests apply to citizens leaving India for work abroad and to visiting citizens.
Gain on selling a home abroad
- Rule
A resident reports all income from sources outside India, and a long term gain on immovable property held more than 24 months is taxed at 12.5 percent without indexation for transfers on or after 23 July 2024, the same rate for residents and non residents.
Relief for tax paid abroad
- Rule
A resident claims relief for foreign tax paid on foreign income through Schedule FSI, which reports the foreign income and tax, and Schedule TR, which summarises the relief claimed by country.
Reporting at home
Schedule FA (foreign assets) in the income tax return, ITR 2 or ITR 3
- Who
A resident of India who is the legal owner, beneficial owner or beneficiary of a foreign asset; not required of a not ordinarily resident or a non resident
- Threshold
None stated; assets held at any time in the calendar year ending 31 December are listed
- Deadline
With the income tax return; for assessment year 2025 to 26 the calendar year was 1 January to 31 December 2024
- Covers a foreign home
Yes
Schedule FSI and Schedule TR in the income tax return
- Who
A resident with income from outside India or a foreign tax credit claim
- Threshold
None stated
- Deadline
With the income tax return
- Covers a foreign home
Yes
Form A2 with the authorised dealer
- Who
A resident individual buying foreign exchange under the Liberalised Remittance Scheme
- Threshold
None; Permanent Account Number mandatory
- Deadline
At each remittance
- Covers a foreign home
Yes
Where to look
Choose a country to see what its rules say for a buyer with a India passport living in India.
Check a country for a passport
Australia
Depends on the propertyPassport: India. Buyer lives outside Australia. Reading for a home.
Different property types carry different readings. The country guide lists each one.
Australia requires a foreign person to obtain foreign investment approval before buying residential land, and from 1 April 2025 to 30 June 2029 buying an established dwelling is generally banned, while vacant land and new dwellings stay open with approval. Australian citizens, permanent residents and eligible New Zealand citizens are not caught.
Rules last checked 29 October 2026
What is changing
- The Finance Bill 2026 explanatory memorandum states that its changes to tax collected at source take effect from 1 April 2026, and that the rate for education and medical remittances falls to 2 percent while the 20 percent rate for other purposes stays.
- The Central Board of Direct Taxes notified the rules and forms of the Foreign Assets of Small Taxpayers Disclosure Scheme 2026 on 1 September 2026 (Notification 114 of 2026).
- The Finance Bill 2026 memorandum proposes that prosecution under the Black Money Act does not apply to foreign assets other than immovable property whose total value is INR 20 lakh or less, with effect from 1 October 2024.
Questions people ask
What if a resident of India wants to buy a home abroad?
The Reserve Bank lists acquiring immovable property abroad as a permitted capital account use of the Liberalised Remittance Scheme. The remittance counts inside the USD 250,000 yearly limit, and a larger amount needs the Reserve Bank's prior permission.
How does the USD 250,000 limit work?
The limit is per resident individual per financial year from April to March. It covers current account uses such as travel, gifts and study as well as capital account uses, so all uses share one limit.
How does tax collected at source apply to a remittance for a home abroad?
The Finance Bill 2026 memorandum shows 20 percent for remittances above INR 10 lakh in a financial year for purposes other than education or medical treatment.
What if the home abroad is sold and the money stays abroad?
The Reserve Bank direction states that unspent or realised foreign exchange must be repatriated and surrendered to an authorised person within 180 days, unless it is reinvested.
What if a resident owns a home abroad, how is it reported?
A resident lists it in Schedule FA of the income tax return, which covers assets held at any time in the calendar year ending 31 December. Income from it goes in Schedule FSI. A resident filing ITR 1 or ITR 4 cannot report it, because those forms lack the schedules.
How is a gain on a foreign home taxed?
A long term gain on immovable property held more than 24 months is taxed at 12.5 percent without indexation for transfers on or after 23 July 2024, according to the Central Board of Direct Taxes explanation.
What if someone lives abroad for part of the year?
A person is resident with 182 days or more in India in the tax year, or 60 days or more plus 365 days or more in the preceding four years. Special tests apply to citizens leaving for work abroad and to visiting citizens. A not ordinarily resident need not complete Schedule FA.
What is the Foreign Assets of Small Taxpayers Disclosure Scheme 2026?
It is a time bound scheme for declaring foreign assets and foreign income not reported earlier. The department states a fee of INR 1,00,000 where the foreign asset does not exceed INR 5 crore under the relevant table entry.
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- The tax treatment of rent from a home abroad could not be confirmed from an official source in this pass because the department pages were not readable.
- The number of tax agreements India has in force could not be confirmed from an official source in this pass.
- The final enacted text of the tax collected at source provision for remittances was not read, only the Finance Bill 2026 memorandum.
- The closing date of the Foreign Assets of Small Taxpayers Disclosure Scheme 2026 could not be confirmed from a readable official page.
- The penalty amounts under the Black Money Act for an undisclosed foreign asset could not be confirmed from a readable official page.
- Whether the Overseas Investment Directions add any condition for a resident individual's home abroad beyond the scheme was not read.
Sources
Official pages these figures come from (6)
See what this does to your own numbers
Add a property abroad next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 30 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.