Property Related Frequently Asked Questions

Can a NRI Buy property without coming to India or a person can buy a property without physical presence?

Yes both are possible.

Does NRI/PIO/OCI require permission of The Reserve Bank to acquire residential/ commercial property in India?

No Permission is required by anyone.

What are the Types of property a NRI/PIO/OCI can buy in India?

NRI/OCI/PIO can buy any residential or commercial property in India; however they cannot buy agriculture land in India.

Are there any restrictions on numbers of properties that can be bought and sold by NRI/PIO/OCI?

There are no restrictions in terms of numbers of properties that can be bought by NRI/PIO/OCI; however they can sell only two properties in a financial year.

How are the payments made by the NRI/PIO/OCI?

It is mandatory for NRI/PIO/OCI to make payments only from the below options for buying Property in India:
• NRE Account: Known as Non Residential External account, these are special kind of accounts for NRI’s.
• NRO Account: Known as Non Residential Ordinary account
• FCNR Account: Known as Foreign Currency National Rupee Account. It’s a kind of fixed deposit account and one can maintain account in a choice of 6 currencies: USD, GBP, EUR, JPY, CAD and AUD.
• Wire Transfer: - it means transfer of payment directly from the Foreign Bank to the desired Indian bank account. In this case a wire transfer remittance receipt is issued by the foreign bank confirming the amount transferred in Indian bank account.

Can NRI/PIO/OCI acquire or dispose residential property by way of gift?

Yes, NRI/ PIO/OCI can freely acquire immovable property in India by way of gift either from Resident Indian or NRI/ PIO/OCI and NRI/ PIO/OCI may gift residential/commercial property to Resident Indian, NRI/ PIO and OCI - with approval of RBI

Can NRI/PIO/OCI sell property without permission of RBI?

Yes.

In case of repatriation is there any tax liability to the Indian Government?

Yes, during repatriation Capital Gain Tax (Long Term/Short Term) as applicable will be attracted. The charges for the same are already explained in the capital gain tax definition.

Favourites

{2}

{5}