Buy Property In India

Do non-resident Indian citizens require permission of Reserve Bank to acquire residential / commercial properly in India?

NRIs/ PIOs have been granted general permission to acquire residential/ commercial property in India, other than agriculture/ plantation/ farm house, in terms of the provisions contained in the FEMA Notification No. 21 / 2000-RB dated 3rd May 2000.

General Permission has also been given to NRIs /PIOs to dispose of such property acquired in India without any approval from RBI in terms of Regulation 3 & 4 of the above Notification No.21 / 2000 RB dated 3^rd May 2000.

Yes. Sale proceeds of such property can be repatriated out of India in terms of Regulation 6 of Notification No.21 / 2000 RB dated 3^rd May 2000.

Authorised Dealers in India have been permitted to allow repatriation of sale proceeds of immovable property by a NRI or PIO, upto the extent of the amount paid in foreign exchange, (including the installments of housing loan repaid, if any, remitted from abroad) for acquiring the property. In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties in terms of regulation 6 of Notification. No. 21 / 2000 RB dated 3^rd May 2000. Such NRIs / PIOs shall furnish a declaration to the effect that applicable taxes have been paid or provided for, in respect of sale proceeds that is repatriated.

NRIs may approach their bankers for repatriating such sale proceeds. A declaration shall be furnished to the Bank regarding payment of applicable income tax on income arising out of the property.

Yes. NRIs can obtain loans from banks / housing finance institutions for acquiring house / flat for residential purpose.  

Authorised Dealers (banks) can also grant loans to NRIs for acquisition of a flat / house, for residential purpose, subject to the terms and conditions specified under Regulation 8 of Notification No. FEMA 4 /2000 RB dated 3^rd May 2000.