Purchase of properties abroad by resident individuals in India is allowed as per the provisions of the Foreign Exchange Management Act, 1999 (FEMA). Property purchases are covered under Capital Account Transactions and require careful planning with the help of experienced FEMA consultants in Hyderabad or a FEMA advisor in Andhra Pradesh.
Liberalised Remittance Scheme (LRS)
Resident individuals shall use the Liberalised Remittance Scheme (LRS) for remitting the amount for property purchases. Under LRS, a single person can remit USD 250,000 per financial year. Joint acquisition of property is also allowed subject to the LRS limit of USD 250,000 per financial year per person. Financial year means April to March.
The total value of property may be remitted in tranches within the LRS limit. For example, consider the below remittances made by Mr. Vinay for purchasing a property in Dubai:
Example of Overseas Property Remittances under LRS
| Date | Amount |
| 01 January 2025 | USD 50,000 |
| 01 February 2025 | USD 50,000 |
| 01 March 2025 | USD 20,000 |
| 01 April 2025 | USD 20,000 |
| 01 May 2025 | USD 20,000 |
| 01 June 2025 | USD 20,000 |
| 01 July 2025 | USD 20,000 |
| 01 August 2025 | USD 20,000 |
| 01 September 2025 | USD 20,000 |
| 01 October 2025 | USD 20,000 |
| 01 November 2025 | USD 20,000 |
| 01 December 2025 | USD 20,000 |
| Total | USD 300,000 |
Even though the total remittances made during the calendar year 2025 are exceeding USD 250,000, there is no FEMA violation. This is because the LRS limit is calculated for the financial year April-March.
Therefore, the amount remitted by Mr. Vinay falls under the below two financial years:
Remittance Split by Financial Year
| Financial Year (FY) | Amount |
| FY April 2024 – March 2025 | USD 120,000 |
| FY April 2025 – March 2026 | USD 180,000 |
| Total | USD 300,000 |
Hence, in no financial year is the LRS limit breached.
At the time of remitting the amounts, the individuals shall intimate the bank regarding the purpose of remittance and make sure that the purpose code is appropriate for purchase of properties abroad.
It is good as long as the property value and/or periodical payments are within the LRS limit. Problems arise when:
- The property value is more and a single payment is required, or
- The periodical payments are exceeding the LRS limit.
In such situations, Indian resident individuals shall obtain RBI prior permission for remitting the amount. Expert support from the best FEMA consultant helps avoid delays and compliance risks.
Obtaining Borrowings
As the Indian resident individuals are acquiring the property abroad, some lenders there, such as foreign banks, might be interested to extend a loan for this purchase.
However, FEMA regulations do not allow Indian resident individuals to obtain such loans from third parties abroad.
An individual resident in India may borrow a sum not exceeding USD 250,000/- or its equivalent, or any other amount as decided by the Reserve Bank from time to time, from his/her relatives outside India, and subject to such terms and conditions as specified by the Reserve Bank in consultation with the Government of India.
For guidance on such complex matters, experienced import export consultants and foreign trade consultants ensure compliance with FEMA import regulations and FEMA export regulations, especially when transactions involve overseas properties.
Why Choose FEMABIDE Advisorz for Overseas Property Purchases under FEMA?
Purchasing property abroad as a resident Indian involves several regulatory checks under FEMA, RBI guidelines, and the Liberalised Remittance Scheme (LRS). Any misstep—whether in purpose codes, remittance limits, or RBI approvals—can result in compliance issues. This is where FEMABIDE Advisorz makes the difference.
As the best FEMA consultants in Hyderabad and trusted FEMA advisors in Andhra Pradesh, we provide:
✅ Specialized guidance on overseas property transactions – from structuring remittances within LRS limits to handling joint acquisitions.
✅ RBI approval support when property values or payments exceed prescribed limits.
✅ Compliance-driven strategies to ensure your foreign property purchase aligns with FEMA’s capital account transaction rules.
✅ Personalized solutions for Indian residents looking to invest in overseas immovable properties without regulatory hurdles.
At FEMABIDE Advisorz, we combine deep expertise in FEMA, RBI compliance, and international property structuring to ensure your cross-border investments are smooth, legal, and future-ready.
📌 Secure your overseas property investments with the guidance of Hyderabad’s leading FEMA consultants and Andhra Pradesh’s trusted FEMA advisors.
