In the case of Indians who now live abroad, everything about their motherland is a string that firmly grounds them. That is why many persist upon purchasing some property here in the hope of returning to the familiar soil.
However, there are many rules and regulations that these people will have to face. Fortunately, we are here to help solve some of the basics to help understand the regulations better.
Who are NRI’s?
Be it in films or real life, we commonly group every person who is staying abroad as a Non-Resident Indian (NRI) but as per regulations, the term NRI applies only to a specific section of people. The Foreign Exchange Management Act (FEMA) clearly defines that People of Indian origin (PIO) are ones with a foreign passport holder and there is an Overseas Citizen of India (OCI). In 2015, the government amended the Citizenship Act and merged PIO and OCI.
Can anyone buy a property in India?
If a person is a PIO then he or she can purchase property in India provided they get an OCI card. It is important to note that the Reserve Bank of India recognizes both PIO and OCI on the same footing.
What property can NRIs buy?
Such people are allowed to acquire immovable property in India apart from agricultural and plantation lands and farmhouses. Also, the money used for buying the property should be received from inward remittance or held in a non-resident account. Also, foreign nationals married to NRIs can acquire immovable property jointly with their spouse.
However, there is a catch here. Selected countries like Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong, and Korea cannot acquire or transfer any immovable property in India.
Can NRIs inherit or gift property?
NRIs can inherit any property in India, they are also entitled to inherit agricultural lands and farmhouses too. However, we repeat that NRIs cannot purchase the said properties. The idea of inheritance is simpler. NRIs can inherit Indian properties from other NRIs, can bequeath property to residents, NRIs except to the individuals from the 11 countries mentioned in the previous point.
Can NRIs buy a property through businesses?
The foreign firms that have offices in India have restrictions. A company established on Indian soil can establish an office with the accordance of FEMA and can purchase real estate as well, to carry on their respective business.
However, when the business is closing, the sale of such property can be sent back only upon the prior permission of RBI. In other words, non-residents cannot purchase real estate for personal use, only business use.
We hope these questions have helped you address your concerns when it comes to buying a property in India. If you are also searching for properties then look no further than Embassy Springs. We have crafted a unique lifestyle that marries great design with sustainability. With amenities like indoor and outdoor sports court, wide fauna and flora, you will be transported when you step inside our gates. We wait for you at Bangalore’s biggest and best-planned city.