Under the general permission available, the following categories can purchase immovable property in India:
- Non-Resident Indian (NRI)
- Person of Indian Origin (PIO)
The general permission, however, covers only purchase of residential and commercial property and is not available for purchase of agricultural land / plantation property / farm house in India.
No.
No. An NRI / PIO who has purchased residential / commercial property under general permission, is not required to file any documents/reports with the Reserve Bank.
There are no. restrictions on the number of residential / commercial properties that can be purchased.
No.
No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he / she can acquire or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking any permission of /or reporting to the Reserve Bank.
A foreign company which has established a Branch Office or other place of business in India, in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, can acquire any immovable property in India, which is necessary for or incidental to carrying on such activity.
The payment for acquiring such a property should be made by way of foreign inward remittance through the proper banking channels. A declaration in form IPI should be filed with the Reserve Bank within ninety days from the date of acquiring the property. Such a property can also be mortgaged with an Authorised Dealer as a security for the purpose of borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of the Reserve Bank. Further, acquisition of immovable property by entities incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan and who have set up Branch Offices in India and would require prior approval of the Reserve Bank.
However, if the foreign company has established a Liaison Office in India, it cannot acquire immovable property. In such cases, Liaison Offices can acquire property by way of lease not exceeding 5 years.
Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from
- A Person Resident in India OR
- An NRI OR
- A PIO.
However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of gift.
Yes,
- A person resident outside India OR
- An NRI OR
- A PIO.
a foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was resident in India.
Yes,
- A person resident outside India OR
- An NRI OR
- A PIO.
a foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was resident in India.
A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from
- a person resident in India
- a person resident outside India
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange law in force or FEMA regulations, applicable at the time of acquisition of the property.
Transfer by way of sale.
NRI can sell property in India to
- A person resident in India OR
- An NRI OR
- A PIO.
PIO can sell property in India to
- A person resident in India OR
- An NRI OR
- A PIO with the prior approval of the Reserve Bank
Foreign national of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of the Reserve Bank to.
- A person resident in India
- An NRI
- A PIO
- NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.
- Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank to sell agricultural land/plantation property/ farm house in India.
- Transfer by way of gift
Yes,
- NRI / PIO may gift residential / commercial property
- person resident in India OR
- An NRI OR
- PIO
A foreign national of non-Indian origin requires the prior approval of the Reserve Bank for gifting the residential / commercial property.
