The recent developments done in the real estate sector have opened up better investment opportunities for potential buyers.These advancements have come up with favorable circumstances which will make the purchase process pretty easy.
If you are not an Indian citizen,and are are looking forward to making an investment and calling India your home,then you may like to go through these NRI’s & foreigner’s guidelines.
- Non-Resident Indian (NRI) and Persons of Indian Origin (PIOs)are considered at par when it comes to making real estate investments.
- Under some circumstances, even foreigners are given certain privileges in purchasing property in India.
Guidelines for Non-Resident Indian (NRI) and Persons of Indian Origin (PIOs)
- NRIs and PIOs are allowed to buy all sorts of immovable properties(for residential and commercial purpose) without any special permission, except agricultural land, plantation property or farmhouse.
NOTE: If interested in buying agricultural land, plantation property or farmhouse you need to seek permission from the RBI and the government.
- There is no restriction on the purchase of a number of immovable properties by a PIO or NRI. However, the payments are accepted in Indian currency,e. Rupees via normal banking channels or a fund maintained in any non-resident account under the Foreign Exchange Management Act (FEMA) & Reserve Bank of India (RBI) regulations.
When Can One Obtain a PIO Card?
For obtaining a PIO card you need the following:
- Hold an Indian passport at any time, one’s parents, grandparents or great- grandparents were born in India or permanent Indian citizen.
- Your spouse should be an India citizen or PIO card holder.
NOTE:Nationals of Sri Lanka, Pakistan, Afghanistan, Bangladesh,Iran, China, Nepal & Bhutan may not hold PIO card.
For more information,you may visit the website of immigration to India.
Guidelines for Foreign Citizens
- If you are a foreign national of non-Indian origin, you are not allowed to buy immovable property in India unless that property is gained by a method for legacy from the person who was once the Indian resident.
NOTE:If needed you can acquire or transfer immovable Indian property on a lease that too shouldn’t exceed more than 5 years. In such cases, you may not seek permission or report to the RBI.
- A foreign national who is a person resident in India(who is within the meaning of Section 2(v) of FEMA, 1999) is allowed to buy immovable property in India.
- Make sure that you have gained approvals and fulfilled all the requirements(if any) set by other authorities such as State Government concerned, etc.
- You may need to provide the proof of your residential status to the concern authorities.
- If you are the citizen of Sri Lanka, Pakistan, Afghanistan, Bangladesh,Iran, China, Nepal &Bhutan you may need prior approval of the RBI.
- A foreign national who is a person resident in India (and NOT the citizen of Sri Lanka, Pakistan, Afghanistan, Bangladesh,Iran, China, Nepal &Bhutan) is allowed to buy immovable property without notifying the RBI.
NOTE:Yet, you may consult your lawyer before making your move as you may need approvals from other authorities.
When a Foreign National is Considered as an Indian Resident Under FEMA?
A foreign national has to satisfy these 2 conditions to be considered as an Indian resident under:
- You must be living in India for over 182 days during the preceding financial year.
- Your presence in India in the current financial year must be to take up work, carrying on business or vocation in India or for whatever other reason that would demonstrate your intention to remain in India for an indeterminate period.
Thanks to new real estate rules, buying a property for a non-resident Indians (NRI) is easier than ever before. Anyone with an Indian passport can invest in Indian real estate, given that the property is not an agricultural land, plantation property or a farmhouse.
One of the most important considerations for an NRI investing in Indian real estate is understanding of the financial landscape. If you are an NRI looking to invest in a property in India, the above are the few property buying guidelines for nri & foreigners in India that you should keep in mind before you start looking out for properties.