NRE, NRO & FCNR accounts explained
NRIs pay for Indian property through an NRE, NRO or FCNR account. An NRE account holds foreign earnings converted to rupees and is fully repatriable and tax-free in India; an NRO account holds Indian income (like rent) and is repatriable up to USD 1 million a year; an FCNR account holds foreign currency as a term deposit. The account you use affects how easily you can send sale proceeds abroad later.
NRE vs NRO vs FCNR at a glance
- NRE — foreign earnings in INR; freely repatriable; interest tax-free in India
- NRO — Indian income (rent, etc.) in INR; repatriable up to USD 1M/FY; interest taxable
- FCNR — foreign-currency term deposit; no exchange-rate risk; repatriable
Why the choice matters for property
Buying with NRE/FCNR funds makes future repatriation of sale proceeds simpler (for up to two residential properties). Buying with NRO funds routes future repatriation through the USD 1 million annual window. Plan this before you pay the booking amount.
Frequently asked
This guide is general information, not legal or tax advice. FEMA and tax rules change with each Union Budget — please confirm specifics with a qualified chartered accountant. Property Point's NRI desk connects you with vetted professionals.
Ready to buy in India from abroad?
Explore RERA-verified homes in Bangalore, Gurgaon and Chennai — with a desk that manages everything across time zones.