Acquisition or transfer of Immovable Property in India
Any person who is a Non-Resident indian or Overseas citizen of india or any person resident
outside india cannot acquire any immovable property in india except if he has acquired the
immovable property in accordance with the Foreign Exchange Management (Acquisition and
transfer of Immovable Property in India) Regulations, 2018.
The person resident outside india or NRI or OCI shall take into account the prohibitions,
mode of payment, conditions, etc for acquisition of immovable property in india to ensure
that the acquisition is permissible.
Regulations Applicable
Any Acquisition or transfer of property by a person resident outside india or a Non Resident
indian or OCI Cardholders shall be regulated by the Foreign Exchange Management (Acquisition
& transfer of immovable property in india) Regulations 2018
Acquisition of Immovable Property by Non – resident Indian (NRI)
Type of Immovable property |
Permissibility |
Explanation |
Acquisition of Agricultural land or plantation property or a farm house |
Not permissible by way of purchase or gift |
Acquisition by NRI or OCI of the Agricultural land or plantation property or a farm
house by way of purchase or gift is not permissible |
Acquisition by way of Purchase |
permissible |
Acquisition by way of Purchase permissible An NRI or an OCI is allowed to acquire
any immovable property (other than agricultural land/ plantation property/ farm
house) by way of purchase. in India |
Acquisition by way of gift |
Permissible from Relative resident person / NRI / OCI |
An NRI or an OCI is allowed to acquire any immovable property (other than
agricultural land/ plantation property/ farm house) by way of gift from any person
resident in India or from an NRI or an OCI being his relative |
Acquisition by way of inheritance |
Permissible |
An NRI or an OCI is allowed to acquire any immovable property in India by way of
inheritance from a person resident outside India or a person resident
india.
In case the property is acquired by way of inheritance from a person
resident outside, then the property must be acquired by the transferee in accordance
the provisions of the existing law relating to foreign exchange at the time of
acquisition. |
Transfer of Immovable Property by Non – resident Indian (NRI)
Transferred to |
Permissibility |
Explanation |
Person resident in india |
Permissible |
Transfer of any immovable property in India by an NRI or an OCI to a person resident
in India is fully permissible; |
NRI / OCI other than by way of gift |
Permissible (other than agricultural land or plantation property or farm house) |
Transfer of any immovable property (other than agricultural land or plantation
property or farm house) by NRI or an OCI to an NRI or OCI for consideration .is
permissible |
NRI / OCI by way of gift |
Permissible only to relative (other than agricultural land or plantation property or
farm house) |
Transfer of any immovable property (other than agricultural land or plantation
property or farm house) by NRI or an OCI to an NRI or OCI as a gift .is permissible,
only if the transferee is relative to the NRI or OCI |
Mode of Payment
The Payment of immovable property must be made out of funds received in India through banking
channels by way of inward remittance from any place outside India or by debit to their NRE/
FCNR (B)/ NRO account
The Payment made by way of traveller’s cheque or by foreign currency notes or by other mode
is not permissible.
Acquisition or transfer of immovable property in India - Prohibitions
The Citizens / Legal entities of certain countries are not allowed to acquire or transfer any
immovable property in india without prior permission of the Reserve Bank.
Citizens / Legal entities of such countries however are allowed to acquire property on lease
for not exceeding five years.
The countries on which the above prohibition is levied are as follows :
- Pakistan
- Bangladesh
- Sri Lanka
- Afghanistan
- China
- Iran
- Nepal
- Bhutan
- Macau
- Hong Kong
- Democratic People’s Republic of Korea
How Rajput Jain and Associates can Assist
We offer all kinds of Consultancy, Compliances and Registration Services in relation to
Acquisition of property in or outside india. We have empanelled various experts to provide
the expert advisory, Registration and Compliances services for Acquisition of property in or
outside india.
The services that we offer in relation to Acquisition of property in or outside india
includes the following:
- FEMA Compliances related to acquisition of immovable property in or outside india.
- Reporting to RBI in relation to acquisition of immovable property in or outside india,
if required
- Drafting of documents for reporting to RBI
- Advising various routes for acquisition of immovable property in or outside india,
- Liaisoning with AD Bank and RBI in relation to acquisition of immovable property in or
outside india,