Indian residents sent US$528.7 million abroad to buy property in financial year 2025-26, 64% more than the US$322.82 million sent a year earlier. The figures are Reserve Bank of India data cited in the Keys Beyond Borders report, which Knight Frank India and IREX released on 22 October 2026. Overall remittances under the Liberalised Remittance Scheme fell by about 2% over the same period, so property remittances grew while the total shrank.
For an Indian investor who plans to buy property abroad from India, the report holds a less obvious finding. Most respondents plan to spend more than one person can send in a year, and the reasons they give point to different kinds of assets. The country matters less than three earlier questions, namely how the money leaves, what is being bought, and how it is held, taxed and eventually sold.
What the Rise in Overseas Property Remittances Shows
The remittance figure comes from RBI data, while most of the report rests on a survey of buyers and intermediaries. Knight Frank India and IREX say the survey records stated intentions rather than completed purchases, and that it does not represent every Indian buyer abroad. Read that way, the numbers describe what a group of wealthy, active buyers says it wants, not what the whole market is doing.
Even with that caveat, the shape of the demand is clear. According to the survey, 85% of respondents plan to spend between US$250,000 and US$1 million, and 69% are looking at apartments and condominiums. Overseas property now makes up an average of 13% of respondents' wealth, against about 5% a decade ago, and 84% already own property outside India.
The report also shows who is buying. Business owners, traders and industrialists form 53% of respondents, while corporate executives and salaried professionals have risen to 30% from 7% a decade ago. Shishir Baijal, chairman and managing director of Knight Frank India, said overseas homes are “increasingly being considered as part of a broader wealth and investment strategy”.
Why the LRS Limit Shapes Every Plan to Buy Property Abroad From India
The scheme lets a resident individual send up to US$250,000 abroad in each financial year, according to the RBI's frequently asked questions on the scheme. The financial year runs from 1 April to 31 March. That single limit covers every permitted remittance in the year, including education, travel, gifts and investments, so money sent for other purposes reduces what is left for property.
This is where the survey budgets meet a firm rule. A purchase at the upper end of the range cannot be paid by one person in one year, and the scheme is not available to companies, partnership firms, HUFs or trusts. An investor can spread payments across financial years or buy jointly with family members, and each choice comes with conditions.
The RBI allows relatives to consolidate remittances for a property abroad only when each member meets the scheme's terms. Each person must remit from their own bank account and be a genuine co-owner of what is bought. Clubbing of income and gift tax questions also arise when one family member funds another's share, which makes it a conversation for the family's CA before any money moves.
Each transfer starts with Form A2, the declaration of purpose that the investor gives the authorised dealer bank. The bank reviews the declaration and the documents and decides whether to process the remittance, although the RBI places the final responsibility for compliance on the person sending the money.
TCS, Reporting and Tax Once the Money Leaves
The first cost appears before the property is bought. The authorised dealer collects TCS of 20% on investment remittances above ₹10 lakh in a financial year, under the Section 394 text published by the Income Tax Department. TCS can be claimed as a credit or refund in the return, but it ties up cash until the return is processed.
Ownership then creates reporting every year. Indian residents report assets held outside India in Schedule FA of the income tax return for each year they hold them, even when the asset earns nothing. A guide to what Schedule FA asks of investors sets out the detail. Rent and sale gains are usually taxed where the property sits and again in India, and the treaty with that country decides how much relief is available.
For holdings in the U.S., the tax guide for Indian investors in U.S. real estate explains how withholding, Form 1042-S and the India-U.S. treaty credit fit together. Succession is the cost many buyers overlook. The estate of a non-resident who is not a U.S. citizen must file Form 706-NA if U.S.-situated assets exceed US$60,000 at death, and the IRS lists real estate located in the U.S. among those assets, according to its page on estate tax returns for nonresidents. Families thinking about heirs can read how U.S. estate tax applies to global investors before choosing how to hold a U.S. asset.
A Home Abroad and an Income-Producing Property Are Different Decisions
The motivations in the survey pull in different directions. According to the report, 61% of respondents cite rental income and rising property prices, while residency and golden visa options rank first among the wider factors behind a purchase. A flat bought partly for a future residency application, a child's education or family use is a lifestyle decision, and its value to the family cannot be judged only as an investment.
Residency rules belong to each destination country, and buying a home does not by itself grant the right to live there. An investor drawn by residency needs to check the current rules of that country directly, because programmes can change their terms between the decision and the purchase.
An investor whose aim is income and diversification faces a different set of questions. A single apartment abroad depends on one tenant, one local manager and one buyer at exit, and the owner carries maintenance, vacancy and local tax filings personally. Diversified U.S. commercial real estate, meaning net lease, self-storage, multifamily and other income-producing commercial property, is a separate route with its own trade-offs. It can be weighed alongside direct ownership of a rental home in the U.S.
Raveum reviews each deal and holds it in its own legal entity, and Indian investors invest through a U.S. corporation, known as a blocker, that holds the property interest, so they typically receive Form 1042-S. That structure changes the paperwork and the tax treatment, although it does not change the risks of the property underneath. The overall process for investing in U.S. real estate from India shows how the remittance, the structure and the reporting connect.
The Risks and Limits of Owning Property Abroad
Every route abroad carries the possibility of losing capital. Property values can fall, tenants can leave, rent can go unpaid and distributions from an investment may not be paid at all. Loans used to buy or improve a property add leverage, and refinancing on worse terms can cut the cash left for owners.
Property is also illiquid. A home abroad can take months to sell, and a private real estate investment usually cannot be sold before the property itself is sold. Concentration adds to the risk, because one building in one city ties the outcome to one local market.
Currency moves in both directions. Rent and sale proceeds earned in another currency can be worth more or less in rupees by the time they come home. The guide to dollar assets for Indian investors explains this in more depth. No route described here removes these risks, and none should be chosen on the assumption that the rupee or property prices will move a particular way.
Start With the Asset Before the Destination
The rise in overseas property remittances suggests that, for the families in the survey, property abroad has become part of how they hold wealth rather than a rare purchase. The same report shows that plans often run ahead of the rules, with budgets above one person's annual limit and reasons that mix lifestyle with investment.
The order of questions matters more than the choice of country. An investor first decides whether the aim is a home, residency or income. The next step is to check how the money can leave under the rules of the Liberalised Remittance Scheme, and then to work through tax, reporting, succession and the exit with a CA. Eligible investors can review how investing in U.S. real estate from India works on Raveum, including the property, sponsor, ownership structure, fees, risks and offering documents for each opportunity.
Frequently Asked Questions
How much money can I send abroad to buy property from India?
A resident individual can send up to US$250,000 in each financial year under the Liberalised Remittance Scheme, as of October 2026. The limit covers all permitted remittances in that year, including travel, education and investments, so earlier transfers reduce what remains for a property purchase. Companies, partnership firms, HUFs and trusts cannot use the scheme.
Can family members combine their LRS limits to buy one property abroad?
Yes, relatives can pool remittances for one property, but only when each person meets the scheme's terms. Each member must remit from their own bank account and be a genuine co-owner of the property. Clubbing of income and gift tax questions can arise when one member funds another's share, so a CA should review the plan first.
Is TCS charged when you send money abroad to buy property?
Yes, above a threshold. For financial year 2026-27, the authorised dealer bank collects TCS at 20% on investment remittances above ₹10 lakh in the year. The amount can be claimed as a credit or refund in the income tax return. Until the return is processed, that cash stays locked, so a buyer needs more money upfront.
Do you have to report property abroad in your Indian tax return?
Yes. Indian residents report property and other assets held outside India in Schedule FA of the income tax return. The duty applies for every year they hold them, even when the asset earns nothing. Rent or sale gains are also reported as foreign income, and any foreign tax credit depends on the treaty with that country.
Does buying property abroad give you residency in that country?
Not automatically. Each country sets its own residency rules, and a property purchase alone does not grant the right to live there. Some countries link residency programmes to investment, but their terms change, so anyone buying partly for residency should confirm the current rules with that country's official sources before committing money.
What are the main risks of owning property abroad from India?
The main risks are loss of capital, falling property values, tenants leaving and rent or distributions not being paid. Property is also illiquid, so it can take months to sell, and currency moves can raise or lower the rupee value of rent and sale proceeds. Loans add refinancing risk, and one property concentrates everything in one market.
This article is for general education only and is not investment, tax or legal advice. Rules change and depend on individual circumstances. Investing in private real estate involves risk, including loss of capital, illiquidity, falling property values, distributions not being paid and currency movements. Participation is limited to non-U.S. persons under SEC Regulation S and verified U.S. accredited investors under Regulation D Rule 506(c), and offerings on Raveum are not open to the general public.
