Rules on purchase of property in India by foreigners & nonresidents
Purchase of property by foreigners of non-Indian origin residing outside India
Foreign nationals of non-Indian origin resident outside India are not permitted to acquire any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, they can acquire or transfer immovable property in India, on lease, not exceeding five years without the prior permission of the Reserve Bank. Purchase of property by foreigners non-Indian origin residing in India Foreign Nationals of non-Indian origin can acquire immovable property in India on becoming resident in India in terms of Section 2(v) of the Foreign Exchange Management Act, 1999. • In this connection, he/she has to satisfy the condition of period of stay. • The type of visa granted should clearly indicate the intention to stay in India for an uncertain period to determine his residential status in terms of section 2(v) FEMA, 1999. (Press Release dated February 1, 2009 issued by Government of India is enclosed as Annex-1). Repatriation of sale proceeds of property sold in India Repatriation of sale proceeds of property owned by foreigner is allowed only with prior permission of the Reserve Bank of India. No RBI permission is required for repatriation of sale proceeds of property in India owned by a person resident outside India who is a citizen of India [NRI] or a person of Indian origin [PIO] Banks will require proof that the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition. Repatriation in case of sale proceeds of residential property is restricted to two properties. Foreign nationals of non-Indian origin who have acquired immovable property in India by way of inheritance with the specific approval of the Reserve Bank or have purchased the immovable property with the specific approval of the Reserve Bank cannot transfer such property without the prior permission of the Reserve Bank of India.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional
accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has
been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail.
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© Copyright 2006 Nriinformation.com
Rules on purchase of property in
India by foreigners &
nonresidents
Purchase of property by foreigners
of non-Indian origin residing outside
India
Foreign nationals of non-Indian origin resident outside India are not permitted to acquire any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, they can acquire or transfer immovable property in India, on lease, not exceeding five years without the prior permission of the Reserve Bank. Purchase of property by foreigners non-Indian origin residing in India Foreign Nationals of non-Indian origin can acquire immovable property in India on becoming resident in India in terms of Section 2(v) of the Foreign Exchange Management Act, 1999. • In this connection, he/she has to satisfy the condition of period of stay. • The type of visa granted should clearly indicate the intention to stay in India for an uncertain period to determine his residential status in terms of section 2(v) FEMA, 1999. (Press Release dated February 1, 2009 issued by Government of India is enclosed as Annex-1). Repatriation of sale proceeds of property sold in India Repatriation of sale proceeds of property owned by foreigner is allowed only with prior permission of the Reserve Bank of India. No RBI permission is required for repatriation of sale proceeds of property in India owned by a person resident outside India who is a citizen of India [NRI] or a person of Indian origin [PIO] Banks will require proof that the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition. Repatriation in case of sale proceeds of residential property is restricted to two properties. Foreign nationals of non-Indian origin who have acquired immovable property in India by way of inheritance with the specific approval of the Reserve Bank or have purchased the immovable property with the specific approval of the Reserve Bank cannot transfer such property without the prior permission of the Reserve Bank of India.
