Introduction

Millions of NRIs (Non-Resident Indians) are investing in real estate property across India. The rules have been relaxed in recent years, making it easier for NRIs to invest. This guide will provide an overview of the key regulations for NRIs investing in Indian real estate.

Who can Invest?

Indian Citizens Residing Outside India: You can invest in most types of real estate, except for agricultural land, plantation property, and farmhouses.
Persons of Indian Origin (PIOs): You can invest in most types of real estate, except for agricultural land, plantation property, and farmhouses. You can also inherit any type of property.

 

Restrictions

  • Agricultural Land, Plantation Property, and Farmhouses: NRIs cannot acquire these types of properties by purchase or gift. However, you can inherit them.
  • Repatriation: You can repatriate up to US$1 million per year from the sale of residential property. There is no limit for commercial property.

 

Acquisition Process

  • Funding: You can purchase property using funds from abroad remitted through banking channels or from your NRE/FCNR(B)/NRO account.
  • Approval: You may need approval from the Reserve Bank of India (RBI) for certain types of transactions, such as inheriting property from a non-resident.

 

Transferring Property

  • Indian Citizens and PIOs: You can transfer most types of real estate to residents of India or other NRIs/PIOs.
  • Repatriation of Funds: The sale proceeds of residential/commercial property received by way of gift should be credited to an NRO account only.

 

Key Takeaways

  • NRIs have significant investment opportunities in the Indian real estate market.
  • There are some restrictions on the types of properties NRIs can invest in and how they can repatriate funds.
  • The process of acquiring and transferring property is relatively simple.

Disclaimer: This guide is for informational purposes only and should not be considered legal advice. Please consult with a legal professional for advice on your specific situation.

 

Additional Information

For more details on the regulations, please refer to the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000.
You can also contact the Reserve Bank of India for further guidance.