As an NRI (Non-Resident Indian), you are allowed to purchase property in India, subject to certain guidelines and regulations. Here are some of the key guidelines you should be aware of:
- Eligibility: NRIs, as well as Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs), are eligible to buy property in India. However, citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan require prior approval from the Reserve Bank of India (RBI) to purchase property.
- Types of Property: NRIs can purchase any residential or commercial property in India, except for agricultural land, plantation property, and farmhouse property. However, they can inherit agricultural land or farmhouse property from a resident Indian.
- Funding: NRIs can purchase property in India through funds from their NRE (Non-Resident External) or FCNR (Foreign Currency Non-Resident) account. They can also use funds from their NRO (Non-Resident Ordinary) account, subject to certain restrictions.
- Documentation: NRIs are required to submit additional documentation when purchasing property in India, such as a copy of their passport and visa, a PIO/OCI card (if applicable), and a Power of Attorney in favor of someone residing in India.
- Taxation: NRIs are subject to the same tax laws as resident Indians when it comes to property transactions in India. However, they may be eligible for certain tax exemptions and deductions.
- Repatriation: NRIs can repatriate funds from the sale of property in India, subject to certain conditions and limits. The repatriation of funds should be done through the NRE or FCNR account.
