Can Foreign Embassies/ Diplomats/ Consulate Generals acquire property in India?
Answer: Foreign Embassy/ Diplomat/ Consulate General, can purchase/ sell immovable property (other than agricultural land/ plantation property/ farm house) in India provided –
Clearance from the Government of India, Ministry of External Affairs is obtained for such purchase/sale, and
The consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through banking channels.
Can foreign nationals acquire property in India?
Answer:
Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong or Democratic People’s Republic of Korea (DPRK), irrespective of their residential status, cannot, without prior permission of the Reserve Bank, acquire or transfer immovable property in India, other than on lease, not exceeding five years.
Foreign nationals of non-Indian origin resident in India (except 11 countries listed at (a) above) can acquire immovable property in India.
Foreign nationals of non-Indian origin resident outside India can acquire/ transfer immovable property in India, on lease not exceeding five years and can acquire immovable property in India by way of inheritance from a resident.
All other acquisitions/ transfers by foreign nationals will require the prior permission of RBI
How can a Hindu, Christian, Sikh, Parsi, Buddhist, Jain being Long Term Visa (LTV) holder acquire property in India?
Answer: Citizen of Pakistan, Bangladesh or Afghanistan belonging to minority community (Hindu, Christian, Sikh, Parsi, Buddhist, Jain) in that country and residing in India who has been granted an LTV by the Central government can purchase only one residential immovable property in India as dwelling unit for self-occupation and only one immovable property for carrying out self-employment.
However, such acquisition is subject to the conditions as specified under Regulation 7 of Notification No. FEMA 20 (R)/2018-RB dated March 26, 2018.
Q: Can a foreign national of non-Indian origin resident outside India purchase immovable property in India?
A: No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he/she can acquire or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking any permission of/ or reporting to the Reserve Bank of India.
Q: Can a foreign national who is a person resident in India purchase immovable property in India?
A: Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong or Democratic People’s Republic of Korea (DPRK), irrespective of their residential status, cannot, without prior permission of the Reserve Bank, acquire or transfer immovable property in India, other than on lease, not exceeding five years.
Foreign nationals of non-Indian origin (except 11 countries listed at (a) above) can acquire immovable property in India if he is a ‘resident in India’ within the meaning of Section 2(v) of FEMA, 1999, but the person concerned would have to obtain the approvals and fulfil the requirements, if any, prescribed by other authorities, such as, the State Government concerned, etc.
The onus to prove his/her residential status is on the individual as per the FEMA provisions, if required by any authority.
Who is a Resident?
Ans. Resident as defined in Sec 2(v) 2 of FEMA, 1999. Further, the onus is on the individual to prove his/ her residential status, if questioned by any authority.
Note: As per FEMA, Section 2(v): “person resident in India” means-
(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include-
(A) a person who has gone out of India or who stays outside India, in either case-
for or on taking up employment outside India, or
for carrying on outside India a business or vocation outside India, or
for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;
(B) a person who has come to or stays in India, in either case, otherwise than-
for or on taking up employment in India, or
for carrying on in India a business or vocation in India, or
for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;
Q: A person had bought immovable property, when he/she was a resident of India,
Can he/she continue to hold such property even after becoming an OCI card holder?
Can he/she gift such properties?
Can he/she rent out such property?
A: Yes, a person who had bought residential/commercial property/agricultural land/ plantation property/farm house in India when he was an Indian citizen, can continue to hold that property without the approval of the Reserve Bank after becoming an OCI card holder.
Yes. He/she may transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India and is a citizen of India or to an OCI card holder resident outside India.
Yes, OCI card holders can rent out their properties in India.
Q: A foreign national of non-Indian origin resident in India or outside India had earlier acquired immovable property in compliance with the relevant FERA guidelines with the specific approval of the Reserve Bank;
Can he/she continue to hold the same?
Can he/she transfer such property?
A: Yes, he/she may continue to hold the immovable property under holding license obtained from the Reserve Bank.
However, he/she can transfer the property only with the prior approval of the Reserve Bank of India. For more details, check the website of the Reserve Bank of India