Real Estate - FAQ for NRIs

Q.1. Can an NRI /PIO acquire residential/ commercial property in India by way of purchase/ gift?
A.1. Yes. General Permission is available to purchase only residential/commercial property in India to a person resident outside India who is a citizen of India (NRI) and who is a Person of Indian Origin (PIO) (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan).

Q.2 Is there any restriction on the number of residential/commercial properties that an NRI /PIO can purchase under the general permission available?
A.2. No.

Q.3. Can the name of a foreign national of non-Indian origin be added as a second holder to a residential/commercial property purchased by NRI/PIO?
A.3. No.

Q.4. Can a foreign national of non-Indian origin resident outside India acquire any immovable property in India by way of purchase/ gift?
A.4. No. Under section 2 (ze) of the Foreign Exchange Management Act, 1999 'transfer' includes among others, 'purchase'. Therefore, a foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of purchase/gift.

Q.5. Can a person resident outside India (i.e. a NRI or a PIO or a foreign national of non-Indian origin) acquire agricultural land/plantation property/farm house in India by way of purchase/ gift?
A.5. No. A person resident outside India cannot acquire by way of purchase/gift agricultural land/plantation property/farm house in India.

Q.6 Under general permission available can NRI/PIO transfer his residential/commercial property by way of gift?
A.6. Yes. NRI/PIO may transfer by way of gift residential/commercial property in India or to a NRI or a PIO

Q.7. Can a person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) hold any immovable property in India acquired by way of inheritance from a person resident outside India?
A.7. With the specific approval of Reserve Bank a person resident outside India may hold any immovable property in India acquired by way of inheritance from a person resident outside India.