Immovable Property

Sr No

PARTICULARS

KEY FEATURES

1

Acquisition and Holding

  • NRIs/PIOs are allowed to acquire or hold immovable property without any RBI approval.
  • Acquisition can be by way of purchase, gift or inheritance.
  • Acquisition can be for any number of immovable property, to the extent it is for investment purpose (and not as real estate business activity).
  • Agriculture land, farm house and plantation property cannot be acquired or hold by NRIs/PIOs, except if so acquired by way of inheritance.
  • Foreign citizens of foreign origin are not allowed to purchase immovable property.

2

Transfer

  • NRIs/PIOs are allowed to transfer the immovable property by way of sale or gift, without any RBI approval.
  • Agriculture land, farm house and plantation property can be transferred by NRIs/PIOs to Indian citizens only.

3

Mode of Payment

Payment for purchase of Immovable Property can be made:

  • Remittance from abroad through normal banking channels
  • Through funds held in NRE/FCNR/NRO account
  • Loan from Authorised Dealer Bank/Housing Finance Institutions/Indian Company Employer

4

Repatriation of Sale Proceeds

Repatriation is allowed to the extent of:

  • Forex brought into India or amount debited to NRE/FCNR account, for the purchase of property and
  • 1 Million US Dollars per Financial Year

5

Renting

  • NRIs/PIOs are allowed to rent out the immovable property without any prior approval of RBI.
  • Rental Income is allowed to be credited to NRO/NRE account, and also allowed to be directly remitted abroad.

6

Citizenship Related Restriction

  • A person, who is citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, China, Nepal or Bhutan, is not allowed to acquire/hold/transfer an immovable property, without a prior approval of Reserve Bank of India.

Get in Touch