Aquisition of Immovable Property By NRI's holding Indian Passport

• NRI's holding Indian passport do not require prior permission of Reserve Bank of India to buy residential or commercial immovable property in India.
• The purchase consideration may be paid either by remittance of funds from abroad through normal banking channels or out of NRE / FCNR / NRO account.
• NRI's of Indian nationality do not require any permission for acquisition, transfer or disposal by way of gift of immovable property which is not a farmhouse or agricultural land or plantations property. Declaration on form IPI 7 for acquisition of commercial property for carrying on any industrial, commercial or trading activity by their proprietary / partnership firm in India is required to be filed with RBI within 90 days from date of purchase.

• Under the general permission to NRI's holding foreign passport, the RBI has allowed them to acquire, hold, transfer or dispose off by way of sale or inheritance, immovable properties situated in India.
  
• The general permission has been granted provided :
  • The property is for the purchaser's bonafide residential use;
  • The purchase consideration is met either by remittance from funds abroad through normal banking channels or out of NRE / FCNR.
  • Income accruing by way of rent from the properties purchased or acquired by inheritance will not be allowed to be repatriated abroad even if the purchase consideration was met out of NRE / FCNR account.
    
• It is however, necessary for foreign citizens of Indian origin to declare such property to RBI within a period of 90 days from the date of purchase in the prescribed IPI 7 to the Chief General Manager, Exchange Control Department, Foreign Investment Division, Central Office Department, Foreign Investment Division, Central Office, RBI Bombay.

Contact us to know more about various rules, requlations, FAQ's, regarding acquisition and transfer of immovable property in India by NRI's / Person Resident outside India.

Please feel free to call us on +91 9820332992 for advice and assistance on any Investment / Property Purchase decisions. Alternately you can email us at nriservices@coldwellbankergc.com.

Do's and Don'ts of Buying Real Estate.

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