NRI Section
Below Are Answers to Common Questions That Non-resident Indians (NRIs) / Persons of Indian Origin (PIOs) May Have When Buying or Investing in Property
An NRI is a person living outside India who is either an Indian citizen or of Indian origin. They may be outside India for employment, business, or other reasons that indicate their intention to stay outside India for an uncertain period.
No, Indian citizens living outside India do not need permission to acquire immovable property in India, except for agricultural/plantation property or a farmhouse.
Yes, but the Reserve Bank of India has granted general permission for foreign citizens of Indian origin to acquire immovable property in India for residential purposes. They must file a declaration in form IPI 7 with the Central Office of Reserve Bank at Bangalore within 90 days from the date of purchase or final payment, along with a certified copy of the transaction document and a bank certificate regarding the consideration paid.
The purchase consideration should be paid either through inward remittances in foreign exchange via normal banking channels or from funds in NRE/FCNR accounts maintained with banks in India.
Requests for acquiring such property should be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.
Yes, provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of the final installment of consideration amount, whichever is later. Applications for repatriation of original investment should be made to the Central Office of Reserve Bank within 90 days of the property sale in form IPI 8.
Yes, they can acquire or dispose of up to two properties by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin, whether resident in India or not, provided gift tax has been paid.
Yes, NRIs/PIOs can rent out their immovable properties in India without seeking permission from the Reserve Bank of India. Rental income or investment proceeds are eligible for repatriation and are freely repatriable outside India.
Yes, foreign citizens of Indian origin can transfer immovable property held in India to relatives and charitable trusts/organizations, provided they comply with all other applicable laws.
Yes, certain financial institutions like HDFC, LIC Housing Finance Ltd., etc., have been granted permission by the Reserve Bank to provide housing loans to NRIs for property acquisition, subject to certain conditions. Loan repayment should be made within a period not exceeding 15 years through inward remittance or funds held in NRE/FCNR/NRO accounts.
Yes, but the NRI borrower should make the payment of margin money and repay the loan installments.
The following documents are needed along with the application form: a photocopy of the labor contract countersigned by the applicant’s employer (translated to English for non-English documents); a recent salary certificate (in English) with details such as name, date of joining,passport number, designation, salary, and perquisites; a photocopy of the labor card/identity card; a photocopy of the valid resident visa stamped on the passport; a photocopy of the monthly statement of the local bank account; and property-related documents.