Non-Resident Indians (NRIs) can transfer property in India, but there are several restrictions and legal considerations to keep in mind. Under the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines, NRIs are generally permitted to sell or gift residential or commercial properties without prior approval. However, the transfer of agricultural land, plantation property or farmhouses is restricted and can only be transferred to a resident Indian​. Key restrictions include:

• Types of Property: NRIs cannot purchase agricultural land, plantation property or farmhouses, though they can inherit or receive these as gifts. For other property types, NRIs can transfer ownership through sale, gift or inheritance​​.
• Repatriation of Funds: NRIs can repatriate the sale proceeds of immovable property, subject to certain conditions. These include compliance with foreign exchange laws at the time of property acquisition and ensuring that the sale proceeds do not exceed the funds originally remitted for purchase. Repatriation is limited to two residential properties, though additional remittance is possible under specific schemes​.
• Documentation: Transferring property requires meticulous documentation, including a valid passport, PAN card, sale or gift deed and relevant approvals if applicable. Registration of the transfer deed with local authorities and payment of stamp duty are mandatory​.
• Tax Implications: NRIs must be aware of tax liabilities, including capital gains tax and stamp duty. Legal advice is recommended to manage these financial implications effectively​​.

Consulting a real estate attorney India is advisable to ensure a smooth and legally compliant property transfer process, addressing all potential legal and tax issues effectively.