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India Investment Guide - Acquisition & Transfer of Immovable Property

	Acquisition/ Transfer of Immovable Property by Non Resident Indian
	Acquisition/ Transfer of Immovable Property by Person of Indian Origin
	Acquisition/ Transfer of Immovable Property by Foreign National

Acquisition/ Transfer of Immovable Property by Non Resident Indian

Non Resident Indian are allowed to acquire immovable property in India except an agricultural property, plantation, or a farm house subject to the following conditions:

• Payment of purchase price shall be made of funds received in India through normal banking channels by way of inward remittance from abroad or
• Funds held in any non- resident account maintained in India

Transfer of Immovable property

Any Immovable property acquired in India shall be transferred to a person resident in India and transfer any immovable property other than agricultural property, plantation, or a farm house to a person resident outside India

Prohibited Immovable Property (PIP):- No transaction related to agricultural property, plantation, or a farm house is allowed at all either by way of acquisition or by way of transfer or sale

Acquisition/ Transfer of Immovable Property in India by a Person of Indian Origin

NRIs are allowed to acquire immovable property in India except an agricultural property, plantation, or a farm house subject to the following conditions:

• Payment of purchase price shall be made of funds received in India through normal banking channels by way of inward remittance from abroad or
• Funds held in any non- resident account maintained in India

NRIs are allowed to acquire any immovable property except PIP by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India, accordingly allowed to transfer in the same way.

NRIs are also allowed to transfer residential or commercial property in India by way of gift to a person resident in India or a to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India.

Repatriation of sale proceeds

Sale proceeds of any immovable property other than PIP by a person resident outside India who is a citizen of India or a person of Indian origin, shall route through designated authorised dealer subject to following conditions:-

1. Such immovable property was acquired in adherence with all the applicable provisions of FEMA
2. In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
3. the total amount to be repatriated does not exceed the actual amount paid for acquisition of the immovable property in foreign exchange received through normal banking channel or out of funds held in FCNR account or funds held in NRE account

Acquisition/ Transfer of Immovable Property by Foreign National

Acquisition of Immovable Property by foreign nationals for carrying on a permitted activity

A person resident outside India who has established a branch, office or other place of business for carrying on in India any activity, excluding a liaison office activity may acquire any immovable property in India, for smooth conduct of permitted activity subject to the following conditions:

• All applicable laws, rules, regulations, provisions or directions are duly complied and
• Declaration in Form IPI necessary for RBI reporting purpose has been duly filled within prescribed time frame of 90 days of the transaction and
• For borrowing purpose such property shall be mortgaged with an authorised dealer as a security in accordance with the applicable legislation for the same

Here Foreign Nationals includes Foreign Embassies/ Diplomats/ Consulate Generals in India

A Foreign Embassies/ Diplomats/ Consulate Generals in India may purchase and sell immovable property in India other than agricultural land/ plantation property/ farm house subject to the following conditions:

• Prior approval from GOI, Ministry of External Affairs has been obtained for such purchase/ sale and
• Payment for such acquisition is paid out of the funds remitted from abroad through normal banking channel

Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire or transfer immovable property in India without prior approval of the RBI other than lease, not exceeding five yrs.

No person resident outside India shall transfer any immovable property in India provided RBI permits such transfer for genuine reason

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