Everything You Need to Know

No. A foreign national of non-Indian origin residing outside India is not permitted to purchase immovable property in India, except when the property is inherited from a person who was a resident of India.

However, such individuals are allowed to acquire or transfer property on lease for a period not exceeding five years. In these cases, no prior permission or reporting to the Reserve Bank of India is required, making the leasing process simple and straightforward.

A foreign company that has set up a Branch Office or any other place of business in India, in compliance with the Foreign Exchange Management (Establishment in India of Branch, Office, or Other Place of Business) Regulations, 2000, is permitted to acquire immovable property in India. Such property must be necessary for or incidental to carrying out its business operations.

The purchase consideration must be paid through foreign inward remittance via authorized banking channels. Additionally, the company is required to file a declaration in Form IPI with the Reserve Bank of India within 90 days of acquiring the property. The acquired property may also be mortgaged to an Authorised Dealer as security for raising borrowings.

In the event of business closure or winding up, the sale proceeds of the property can be repatriated only after obtaining prior approval from the Reserve Bank of India. It is also important to note that companies incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, and Bhutan must seek prior RBI approval before acquiring immovable property in India, even if they have established a Branch Office.

However, a foreign company operating through a Liaison Office in India is not permitted to purchase immovable property. Such offices may only acquire property on lease for a period not exceeding five years.

Yes, NRIs and PIOs are permitted to acquire immovable property in India through a gift. Such a gift can be received from:

• A person resident in India, or

• Another NRI, or

• A Person of Indian Origin (PIO)

However, this facility applies only to residential or commercial properties. Agricultural land, plantation property, and farmhouses cannot be acquired by way of gift in India.

It’s important to note that a foreign national of non-Indian origin residing outside India is not permitted to acquire immovable property in India through a gift.

Yes, a person residing outside India, an NRI, or a PIO is permitted to inherit and hold immovable property in India from a person who was resident in India.

This provision also extends to foreign nationals of non-Indian origin, allowing them to inherit and retain immovable property in India through legal succession.

Yes, a person residing outside India, an NRI, or a PIO is allowed to inherit and hold immovable property in India from someone who was resident in India.

This right also applies to foreign nationals of non-Indian origin, who may legally inherit and retain property in India through succession.

A person residing outside India—whether an NRI, PIO, or foreign national of non-Indian origin—can inherit immovable property in India from:

• A person resident in India, or

• A person resident outside India

However, it is important that the property being inherited was originally acquired in compliance with the foreign exchange laws or FEMA regulations that were in force at the time of its acquisition.

Transfer by way of sale.

Property Sale by NRIs, PIOs, and Foreign Nationals in India

• NRIs can sell property in India to:

  • A person resident in India,

  • Another NRI, or

  • A PIO.

• PIOs can sell property in India to:

  • A person resident in India,

  • An NRI, or

  • Another PIO, with prior approval from the Reserve Bank of India (RBI).

• Foreign nationals of non-Indian origin—including citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan—can sell property in India only with prior RBI approval, to:

  • A person resident in India,

  • An NRI, or

  • A PIO.

Sale of Agricultural Land, Plantation Property, or Farmhouses in India

• NRIs and PIOs can sell agricultural land, plantation property, or farmhouses only to a person resident in India who is an Indian citizen.

• Foreign nationals of non-Indian origin residing outside India must obtain prior approval from the Reserve Bank of India (RBI) to sell such properties in India.

• The same rules apply for transfers by way of gift.

Gifting Property in India

• NRIs and PIOs can gift residential or commercial property to:

  • A person resident in India,

  • Another NRI, or

  • A PIO.

• Foreign nationals of non-Indian origin must obtain prior approval from the Reserve Bank of India (RBI) before gifting residential or commercial property in India.