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Q.

Can Foreigners Buy Property in India?

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India is home to a wide range of options and is becoming a more appealing location for real estate investors. But, the query is: can foreigners buy property in India? Yes. Foreigners can buy property in India, but the process is subject to strict regulations under the Foreign Exchange Management Act (FEMA).

Can Foreign Citizen Buy Property in India?

According to RBI norms, foreign-based NRIs and OCIs can buy or invest in Indian property. Many OCIs and NRIs (Non-Resident Indians) make real estate investments in India, either for residential or investment purposes, with the goal of returning to India after retirement. Their ability to acquire property depends on their residency status and the type of property.

  1. Foreigners must meet the definition of a "resident" as per FEMA, which requires a person to stay in India for at least 182 days in the preceding financial year for employment, business, or under circumstances showing an intention to stay for an indefinite period.

  2. Foreigners who are not residents (e.g., on tourist visas) cannot purchase property in India.

  3. Overseas Citizens of India (OCI) are treated similarly to Non-Resident Indians (NRIs) and can buy residential or commercial property in India. However, they are restricted from purchasing agricultural land, plantation property, or farmhouses.

Types of Indian Properties Allowed for Foreigners

  1. Permitted: Residential and commercial properties.

  2. Restricted: Agricultural land, plantation property, or farmhouses (except through inheritance).

If a foreigner (non-resident) wants to purchase property, special permission must be obtained from the Reserve Bank of India (RBI), which is typically granted only under exceptional circumstances. I hope your query is solved.

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How can foreigners buy property in India 

I came across this query multiple times; can foreigners buy property in India? So, the answer is yes. Foreigners can buy property in India under certain conditions, though there are several legal restrictions in place. Let me share the detailed information below.

Can a Foreigner Buy Property in India?

  • Firstly, non-resident Indians (NRIs) and persons of Indian origin (PIOs) are permitted to buy both residential and commercial property in India without any restrictions.

  • They can also inherit agricultural land, plantation property, or farmhouses, though they cannot purchase these types of properties directly.

  • Foreigners who reside in India for more than 182 days during the preceding financial year and hold a valid long-term visa can buy property.  

  • These foreigners must adhere to specific regulations outlined by the Reserve Bank of India (RBI) and FEMA (Foreign Exchange Management Act).

  • Foreign nationals who do not meet the residency requirement or hold the appropriate visa cannot purchase property in India directly. However, they are allowed to inherit property if it’s from a relative who has willed it to them. They are also allowed to lease property for up to five years without seeking any special approval.

  • Additionally, the purchase of agricultural land, farmhouses, or plantation properties is strictly prohibited for all foreign nationals, including NRIs and PIOs. Any violation of these rules can lead to penalties and legal consequences.

So, basically foreigners can buy property in India depending on their residency status, visa type, and the kind of property they wish to purchase. They can do the purchase directly from NoBroker. I have shared the link below:

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How can NRI Buy Property in India

1 2021-04-30T19:22:34+00:00

Hi,

Foreigners who are residing outside of India cannot acquire an immovable property in India. But if a foreign national resides in India, he/she can acquire immovable property under certain circumstances. So to answer your question, ‘can foreigners buy property in India?’ Yes.

Conditions for foreigners to buy property in India

  • Any foreign citizen residing in India can buy a property in India after completing the continual residency period of 182 days during a financial year. 

  • Those who belong to Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan and are residing in India can purchase immovable property in India after acquiring permission from the Reserve Bank of India and Government of India. 

  • The payment for buying an immovable property in India must be made via funds remitted from abroad through a banking channel.

A few documents required by foreigners to buy property in India are:
  • Property registration documents

  • Declaration to the revenue authority of the district where property is located to inform about sources of funds

  • Identification cards

  • Visa and passport 

  • Address proof

I hope now you know the answer to your query ‘Can foreigners buy property in India?’