8. Can a Foreign National who is a resident of India buy an immovable property in India?

Yes. As per the provisions of the Foreign Exchange Management Act i.e. (FEMA), 1999 of Section 2(v) (i) B, foreign national who is a resident of India can buy an immovable property in India. It further requires the approvals from concerned state governments and to fulfill other authorities.

A foreign national who is a resident in India and is a citizen of Afghanistan, Pakistan, Nepal, Bangladesh, Sri-Lanka, China, Bhutan, or Iran would have to take prior approval of the Reserve Bank of India, in consultation with the Government of India.

7. Can a Foreign National of non-Indian origin who resides outside India buy any residential property in India?

No. A Foreign National who is not of Indian origin can only take the residential accommodation on a lease. This is provided with the period of a lease does not exceed five years. In such types of cases, there is no requirement of taking any kind of permission from or reporting to the Reserve Bank of India i.e. RBI.

6. After the purchase of property is it require the filing of any kind of documents with the Reserve Bank of India (RBI)?

No. A Non- Resident Indian (NRI)/Person of Indian Origin (PIO), who under general permission has purchased a property of either residential or commercial, is not required to file any kind of documents with the Reserve bank of India (RBI).

5. What formalities are to be done before buying?

Foreign Exchange Management Act i.e. (FEMA) instructs that before buying, form IPI7 requires being filed with the Central office of Reserve Bank of India. This Along with this form the title deed or any other certified copy of the document requires submitting which will prove that the NRI has executed an agreement to buy property within the country.

In addition to the above documents the bank certificate which states the consideration paid for the buying of the property have to attach to the form. The form along with all the required documents needs to file within 90 days of the buying of property. If all the relevant documents are submitted then the permissions are usually granted without the undue delays.

4. What kind of Immovable Property can be purchased?

The general permission for buying the immovable property covers the following:

  • Buying of commercial and Residential property
  • It doesn’t extend to purchase of agricultural land/ plantation property/ farm house India.

Proposals for buying such kind of property would need specific approval from the Reserve bank of India (RBI) that considered in consultation with the Government of India.

3. Who can buy the Immovable Property in India?

The following categories can freely buy the immovable property in India under the General Permission Available which covers only buying of commercial and residential property:

  • He held an Indian passport at any time; or
  • By virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955) who or either of whose father or mother or grandfather or grandmother was a citizen of India.

2. Who is a PIO?

“Person of Indian origin” (PIO) is defined in the Foreign Exchange management (Borrowing and Lending in Rupees) Regulations, 2000 under Section 2 (B) and also in the Foreign Exchange Management (Deposit) Regulations, 2000 under section 2 (Xii). As per the definition is given under:

“Person of Indian Origin” i.e. PIO refers to a citizen of any country other than Bangladesh or Pakistan, If

  • He held an Indian passport at any time; or
  • As per the citizenship Act, 1955 (57 of 1955) or by virtue of the constitution of India he or either of his parents or any of
  • is grandparents was a citizen of India; or
  • A person referred to in sub-clause (a) or (b) or the person is a spouse of an Indian citizen”

For the purpose of acquiring Immovable Property in India a Person of Indian Origin (PIO) as given under:-

“Person of Indian Origin” refers to an Individual (Who is not being a Citizen of Sri-Lanka or Pakistan or Afghanistan or Bangladesh or China or Iran or Bhutan), who

  • He held an Indian passport at any time; or
  • By virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955) who or either of whose father or mother or grandfather or grandmother was a citizen of India.

For any further enquiries regarding the guidelines covering such investments kindly refer to the relevant website given below.

1. Who is an NRI?

A person who is a citizen of India or of Indian origin but residing outside India is an NRI. The section 2(w) of Foreign Exchange Management Act, 1999 defined the person who is resident outside India as “a person who is not resident in India” In the following cases a person shall be deemed to be a person not resident in India:-

  • During the previous financial year when the person stays in India for less than or up to 182 days
  • In few cases when a person was gone or stays outside India-

    • For the employment or on taking the employment outside India, or
    • For business or on vacation outside India, or
    • For any other purpose or motive which intends his stay outside India for an indefinite period

Disclaimer: The buyer or seller of any kind of property in India have to consult his or her own legal/finance/tax advisor and also need to take the suitable advice for their specific transaction. Pushkar Shelters do not assume any kind of responsibility or any legal liability for any kind of transactions which entered into by placing reliance on these FAQs. Al the above guidelines are subject to the amendment by the regulatory authority. Pushkar Shelters do not assume any responsibility for updating the above FAQs.