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Purchase of Residential and Commercial Property in India
Property purchase by NRIs and Foreigners of Indian Origin.
NRIs and Foreign citizens of Indian origin can purchase residential and commercial properties in India without any prior permission.
There are no restrictions as to the number of residential or commercial properties that they can purchase.
No documents are required to be filed with the Reserve Bank of India.
Foreign nationals of non-Indian origin
Foreign nationals of non-Indian origin, resident outside India cannot purchase any immovable property in India
Foreign nationals of non-Indian origin, resident in India can purchase property in India provided they obtain all the required permissions from the central and state governments concerned.
Foreign nationals of non-Indian origin can inherit (from a person who is a resident in India) and hold property in India
Repatriation of Sale Proceeds of Property by NRIs - Property purchased with foreign exchange
NRIs can transfer abroad the sale proceeds of immovable property in India provided they acquired the property with inward remittance of foreign exchange or from their NRE accounts. The amount they can repatriate should not exceed the amount paid for the property.
Such repatriation is allowed for only two properties.
Amounts of the sale proceed should be deposited in an NRO account and can then be repatriated.
An amount of up to USD one million per financial year can be repatriated from NRO accounts.
Property previously owned by NRIs before moving abroad
Many NRIs now foreign citizens owned property before they became NRIs. Some of these NRIs wish to dispose off their property and bring the money with them abroad. Nri's in this situation sometimes sell off their properties at throw away prices just so that they can get paid abroad thinking that they cannot legally transfer money outside India. This is not true.
If you are an NRI who is selling property you own in India then do things legally and accept money through valid banking channels. The sale proceeds should be deposited in an NRO account that you can open at most banks in India. This is the first step to taking your money out of India, legally!
Nri's can transfer sale proceeds from property abroad from their NRO accounts provided they held the property for at least ten years.
If the property was held for less than ten years then NRIs can deposit the sale proceeds of the property into an NRO account for the balance of the ten year period. For example you sold a property you held for seven years, then you would have to deposit the sale proceeds to an NRO account for at least three years to complete the ten year requirement and then transfer the money abroad.
NRIs can repatriate up to one million US$ per financial year (April to March in India) from NRO accounts provided they meet the ten year rule in case of funds acquired from property sale.
Sale proceeds of up to two residential properties can be repatriated.
If the property sold was bought with funds from abroad is sold then the original amount sent from abroad can be repatriated and the ten year ownership rule does not apply.
Transferring Money from India from sale of inherited property
NRIs or PIOs who inherit property from a person resident in India and sell it, can transfer the sale proceeds abroad. Up to one million US Dollars per calendar year subject to production of documentary evidence to support their inheritance of the property and the necessary tax clearance certificates from the appropriate income tax authority.
Purchase of Agricultural Land in India
Foreigners cannot buy agricultural land in India. This is applicable to all of India. No state in India allows foreigners to buy agricultural land.
Nri’s cannot buy agricultural land in India. Yes! all over India as above. Approval is required from the Reserve bank of India which one can assume is not easily available and this would depend on individual circumstances. Furthermore, some State governments in India have rules that allow only farmers to buy agricultural land in their State and this restricts even Indian citizens from buying agricultural land.
OCI holders residing in India by virtue of their OCI status are still foreign citizens and should realize that OCI grants them visa for life to stay in India but does not give them Indian citizenship. They still hold foreign passports.
NRis and Foreign citizens of Indian origin cannot acquire agricultural land by way of gift. They can only acquire agricultural land by inheritance.
Must NRIs with Foreign Citizenship sell agricultural land they previously owned? Can NRIs who have acquired foreign citizenship keep agricultural Land in India?
NRIs who have acquired foreign citizenships are sometimes mislead into believing that they cannot continue to hold agricultural land because foreigners cannot own agricultural land in India. This is not true.
While foreigners cannot purchase agricultural land, they can continue to hold agricultural land or any other property they own in India provided they had acquired them legally before accepting foreign citizenship.
Check with the authorities before being conned out of your land. Money that is legally yours can now be transferred legally abroad. Don't fall victim to illegal money transfer schemes.
Property purchase by NRIs and Foreigners of Indian Origin.
NRIs and Foreign citizens of Indian origin can purchase residential and commercial properties in India without any prior permission.
There are no restrictions as to the number of residential or commercial properties that they can purchase.
No documents are required to be filed with the Reserve Bank of India.
Foreign nationals of non-Indian origin
Foreign nationals of non-Indian origin, resident outside India cannot purchase any immovable property in India
Foreign nationals of non-Indian origin, resident in India can purchase property in India provided they obtain all the required permissions from the central and state governments concerned.
Foreign nationals of non-Indian origin can inherit (from a person who is a resident in India) and hold property in India
Repatriation of Sale Proceeds of Property by NRIs - Property purchased with foreign exchange
NRIs can transfer abroad the sale proceeds of immovable property in India provided they acquired the property with inward remittance of foreign exchange or from their NRE accounts. The amount they can repatriate should not exceed the amount paid for the property.
Such repatriation is allowed for only two properties.
Amounts of the sale proceed should be deposited in an NRO account and can then be repatriated.
An amount of up to USD one million per financial year can be repatriated from NRO accounts.
Property previously owned by NRIs before moving abroad
Many NRIs now foreign citizens owned property before they became NRIs. Some of these NRIs wish to dispose off their property and bring the money with them abroad. Nri's in this situation sometimes sell off their properties at throw away prices just so that they can get paid abroad thinking that they cannot legally transfer money outside India. This is not true.
If you are an NRI who is selling property you own in India then do things legally and accept money through valid banking channels. The sale proceeds should be deposited in an NRO account that you can open at most banks in India. This is the first step to taking your money out of India, legally!
Nri's can transfer sale proceeds from property abroad from their NRO accounts provided they held the property for at least ten years.
If the property was held for less than ten years then NRIs can deposit the sale proceeds of the property into an NRO account for the balance of the ten year period. For example you sold a property you held for seven years, then you would have to deposit the sale proceeds to an NRO account for at least three years to complete the ten year requirement and then transfer the money abroad.
NRIs can repatriate up to one million US$ per financial year (April to March in India) from NRO accounts provided they meet the ten year rule in case of funds acquired from property sale.
Sale proceeds of up to two residential properties can be repatriated.
If the property sold was bought with funds from abroad is sold then the original amount sent from abroad can be repatriated and the ten year ownership rule does not apply.
Transferring Money from India from sale of inherited property
NRIs or PIOs who inherit property from a person resident in India and sell it, can transfer the sale proceeds abroad. Up to one million US Dollars per calendar year subject to production of documentary evidence to support their inheritance of the property and the necessary tax clearance certificates from the appropriate income tax authority.
Purchase of Agricultural Land in India
Foreigners cannot buy agricultural land in India. This is applicable to all of India. No state in India allows foreigners to buy agricultural land.
Nri’s cannot buy agricultural land in India. Yes! all over India as above. Approval is required from the Reserve bank of India which one can assume is not easily available and this would depend on individual circumstances. Furthermore, some State governments in India have rules that allow only farmers to buy agricultural land in their State and this restricts even Indian citizens from buying agricultural land.
OCI holders residing in India by virtue of their OCI status are still foreign citizens and should realize that OCI grants them visa for life to stay in India but does not give them Indian citizenship. They still hold foreign passports.
NRis and Foreign citizens of Indian origin cannot acquire agricultural land by way of gift. They can only acquire agricultural land by inheritance.
Must NRIs with Foreign Citizenship sell agricultural land they previously owned? Can NRIs who have acquired foreign citizenship keep agricultural Land in India?
NRIs who have acquired foreign citizenships are sometimes mislead into believing that they cannot continue to hold agricultural land because foreigners cannot own agricultural land in India. This is not true.
While foreigners cannot purchase agricultural land, they can continue to hold agricultural land or any other property they own in India provided they had acquired them legally before accepting foreign citizenship.
Check with the authorities before being conned out of your land. Money that is legally yours can now be transferred legally abroad. Don't fall victim to illegal money transfer schemes.
