A Smart Gateway to India…You’ll love it!
WelcomeNRI.com is being viewed in 121 Countries as of NOW.
A Smart Gateway to India…You’ll love it!

FAQs for NRIs to Buy Property in India according to FEMA


nri-property-buying-guidelines

WelcomeNRI offers online property buying guidelines for NRI, PIO and Foreign Nationals. Get all legal information for buying property online.

Q1 : Under the extant foreign exchange regulations to whom general permission available is for purchase of immovable property in India ?

A : General Permission is available to purchase only a residential / commercial property in India to a person resident outside India who is a citizen of India (NRI) or who is a person of Indian origin (PIO).

Q2 : Who is a Person of Indian Origin (PIO) or NRI?

A : For the purpose of acquisition and transfer of immovable property in India, a PIO means an individual (not being a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who

(i) at any time, held Indian passport, or

(ii) who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

Q3 : Is NRI / PIO who has purchased residential / commercial property under general permission required filing any documents with Reserve Bank of India?

A : No, NRI / PIO who has purchased residential / commercial property under general permission does not required to file any documents with the Reserve Bank.

Q4 : Does Reserve Bank determine the residential status of a person for the purpose of acquisition of immovable property in India ?

A : Under FEMA residential status is determined by operation of law. The onus is on an individual to prove his / her residential status if question by any other authority.

Q5 : What is meant by a person resident in India ?

A : From FEMA angle, a person resident in India means a person residing in India for more than 182 days during the course of the preceding financial year (April-March) and who has come to or stays in India either for taking up employment, carrying on business or vacation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period.

In other words, to be treated as `a person resident in India’ under FEMA, a person has not only to satisfy the condition of the period of stay (more than 182 days during the preceding financial year) but has also to comply with the condition of the purpose / intention of stay.

Q6 : Is a person resident in India governed by the provisions of Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000 ?

A : A person resident in India who is a citizen of Pakistan,Bangaladesh,Sri Lanka,Afghanistan ,China,Iran,Nepal or Bhutan is governed by the provisions of Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000.

Q7 : Is there any restriction on the number of residential / commercial properties that NRI / PIO can purchase under the general permission available?

A : There is no restriction on the number of residential / commercial properties that NRI / PIO can purchase under the general permission available.

Q8 : Can NRI or PIO buy property in India jointly with foreign citizen?

A : No. a foreign national of non-Indian origin resident outside India can not acquire any immovable property in India by way of purchase.

Q9 : Can NRI or PIO buy property in india jointly with other indian citizen / PIO?

A : Yes

Q10 : Can a foreign national of non-Indian origin acquire residential property on a lease in India?

A : Yes. A Foreign National of non-Indian origin including a citizen of Pakista,Bangladesh,Sri Lanka,Afghanistan,China,Iran,Nepal or Bhutan may acquire only residential accommodation on lease, not exceeding five years for which he / she does not require prior permission of Reserve Bank of India.

Q11 : Can a person resident outside India (NRI or a PIO) acquire agricultural land / plantation property / farm house in India by way of purchase ?

A : A person resident outside India cannot acquire by way of purchase agricultural land / plantation property / farm house in India.

Q12 : Can NRI / PIO acquire residential / commercial property by way of gift under the general permission available ?

A : Yes. Under the general permission available NRI / PIO may acquire residential / commercial property by way of gift from a person resident in India or a NRI or a PIO.

Q13 : Can a foreign national of non-Indian origin resident outside India acquire residential / commercial property in India by way of gift ?

A : Under section 2(ze) of the Foreign Exchange Management Act, 1999 `transfer’ includes among others, `gift’. Therefore, a foreign national of non-Indian origin resident outside India cannot acquire residential / commercial property in India by way of gift.

Q14 : Can a person resident outside India (i.e. a NRI or a PIO , or a foreign national of non-Indian origin) acquire agricultural land / plantation property / farm house in India by way of gift ?

A : No, A person resident outside India can not acquire agricultural land / plantation property / farm house in India by way of gift.

Q15 : Can a person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) hold any immovable property in India acquired by way of inheritance from a person resident in India?

A : Yes. A person resident outside India can hold immovable property acquired by way of inheritance from a person resident in India as per the provisions of Section 6(5) of the Foreign Exchange Management Act, 1999.

Q16 : Can a person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) hold any immovable property in India acquired by way of inheritance from a person resident outside India?

A : With the specific approval of Reserve Bank a person resident outside India may hold any immovable property in India acquired by way of inheritance from a person resident outside India, provided the bequeathor had acquired such property in accordance with the provisions of foreign exchange law in force at the time of acquisition or under FEMA regulations.

Q17 : Under general permission available to whom can NRI transfer by way of sale his residential / commercial property ?

A : NRI can transfer by way of sale residential / commercial property in India to a person resident in India or to a NRI or a PIO.

Under the general permission available to whom can a PIO transfer his residential / commercial property by way of sale ?

A : PIO can transfer by way of sale residential / commercial property in India only to a person resident in India.

Q19 : Can a PIO transfer by way of sale his residential / commercial property to a NIR or a PIO ?

A : No. He would need to seek Reserve Bank prior approval for transfer by way of sale residential / commercial property in India to a NRI or a PIO.

Q20 : Under the general permission available to whom can NRI / PIO transfer by way of sale his agricultural land / plantation property / farm house in India?

A : Under the general permission available NRI / PIO may transfer by way of sale his agricultural land / plantation / farm house in India to a person resident in India who is a citizen of India.

Q21 : What is the mode of payment for purchase of residential / commercial property in India by NRI / PIO ?

A : Under the general permission available NRI / PIO may purchase residential / commercial property in India out of funds remitted to India through normal banking channel or funds held in his NRE / FCNR (B) / NRO account. No consideration shall be paid outside India.

Q22 : Can refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential / commercial property together with interest, if any (net of income tax payable thereon) be credited to NRE account?

A : Yes, provided original payment was made by way of inward remittance or by debit to NRE / FCNR (B) account. For this purpose no permission of Reserve.

Q23 : Can NRI / PIO for the purpose of acquisition of flat / house in India for his own residential use avail of loan from an authorized dealer against the security of funds held in his NRE Fixed Deposit account / FCNR (B) account?

A : Yes, subject to certain terms and conditions (Please refer to Schedules 1 and Schedules 2 to Notification No.FEMA 5/2000-RBI dated May 3, 2000).

Stay on top of NRI news with the WelcomeNRI.

You may be intrested in

A Smart Gateway to India…You’ll love it!

Recommend This Website To Your Friend

Your Name:  
Friend Name:  
Your Email ID:  
Friend Email ID:  
Your Message(Optional):