Property Purchase in India by NRIs and Persons resident outside India

NRIs and PIOs can purchase residential and commercial property in India. To purchase agricultural and plantation lands, they require special permission of the Reserve Bank of India.Foreign nationals of non-Indian origin, who are resident outside India, cannot purchase immovable property in India. But they can take a property on lease for residential purpose, for a term not exceeding more than 5 years. A foreign national who is a person resident in India can purchase immovable property, provided they take all the approvals from the concerned state government and other authorities. However, this benefit is not applicable for the citizens of Nepal, Bhutan, Bangladesh, Afghanistan, Pakistan, Sri Lanka, Iran and China. Citizens of these countries require prior permission from Reserve Bank of India.A foreign company which has a place of business in India is entitled to acquire immovable property in India for the purpose of undertaking activities of such a company. Again companies which are incorporated in Nepal, Bhutan, Bangladesh, Afghanistan, Pakistan, Sri Lanka, Iran and China having place of business in India need prior approval of Reserve Bank of India  to acquire immovable property.

NRIs and PIOs can acquire immovable property in India by way of gift from a person resident in India, NRI or a PIO. However, only residential and commercial properties can be acquired by way of gift. Agricultural and plantation properties cannot be acquired by way of gift. NRIs and PIOs and can inherit immovable property from a person resident in India, NRI or a PIO. However citizens of Nepal, Bhutan, Bangladesh, Afghanistan, Pakistan, Sri Lanka, Iran and China need prior permission of the Reserve Bank of India in this regard. For NRIs and PIOs, the payments required for purchasing immovable property in India shall come through funds remitted through normal banking channels or from funds in NRE, NRO, FCNR (B) accounts of the person held in India. No payment can be made outside India for this purpose. The funds required for the property purchase by a foreign company having a place of business in India shall come through foreign inward remittance. After the purchase of the property, necessary intimation shall be given to the Reserve Bank of India in this regard. The sale proceeds of such a property can be repatriated only with the permission Of Reserve Bank of India.