Can Foreign Nationals Buy Property In India? What Are The Norms? These 11 Countries Need Prior RBI Approval

Foreign nationals of non-Indian origin resident in India can acquire immovable property in India. However, there are exceptions for 11 countries listed below

Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong or Democratic People’s Republic of Korea (DPRK), irrespective of their residential status, cannot, without prior permission of the Reserve Bank, acquire or transfer immovable property in India, other than on lease, not exceeding five years. This prohibition shall not be applicable to an OCI. All other acquisitions/ transfers by foreign nationals will require the prior permission of RBI.

Foreign nationals of non-Indian origin resident outside India can acquire/ transfer immovable property in India, on lease not exceeding five years and can acquire immovable property in India by way of inheritance from a resident.

Foreign Embassy/ Diplomat/ Consulate General, can purchase/ sell immovable property (other than agricultural land/ plantation property/ farm house) in India provided –

A. Clearance from the Government of India, Ministry of External Affairs is obtained for such purchase/sale, and

B. The consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channels.

Citizen of Pakistan, Bangladesh or Afghanistan belonging to minority community (Hindu, Christian, Sikh, Parsi, Buddhist, Jain) in that country and residing in India who has been granted an LTV by the Central government can purchase only one residential immovable property in India as dwelling unit for self-occupation and only one immovable property for carrying out self-employment. However, such acquisition is subject to the conditions as specified under Rule 28 of Foreign Exchange Management (Non-Debt Instrument) Rules, 2019.

Payment for immovable property has to be received in India through banking channels and is subject to payment of all taxes and other duties/ levies in India. The payment can also be made out of funds held in NRE/ FCNR(B)/ NRO accounts of the NRIs/ OCIs. Payments should not be made through travellers’ cheque and foreign currency notes.

Non-resident Indian (NRI) Overseas Citizen of India (OCI) can acquire immovable property in India as:

--Purchase (other than agricultural land/ farmhouse/ plantation etc);

--Acquire as gift (other than agricultural land/ farmhouse/ plantation etc);

--Acquire (any IP) as inheritance from any person who has acquired it under laws in force or Resident