An NRI is an Indian citizen residing outside India. Person of Indian Origin (PIO) means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who (i) at any time, held Indian passport; or (ii) who or either of whose father or grandfather was a citizen of India.

NRIs & POIs are permitted to buy and sell property in India. The acquisition and transfer of property by such person should be in accordance with the FEMA. The property should be purchased through a registered conveyance deed.

General Permission is available to NRI & POI for purchase of only residential or commercial property in India. The payment has to be made either out of inward remittances in foreign exchange through normal banking channels or out of funds in a NRE or FCNR account maintained with a bank in India. PIO, purchasing residential property in India under the general permission are required to file a declaration with the central office of the RBI within 90 days from the date of purchase of the property or final payment of amount.

A foreign national of non-Indian origin, resident outside India, cannot acquire any immovable property in India by way of purchase without the RBI’s nod. However, a foreign national of non-Indian origin, including a citizen of the eight countries mentioned above, may acquire only residential accommodation on lease, for not more than five years.

A NRI or a PIO may acquire residential/commercial property by way of gift from a resident of India, being an NRI or a PIO.  However, a foreign national of non-Indian origin resident outside India cannot acquire residential/commercial property in India by way of gift. A person resident outside India can hold immovable property in India acquired by way of inheritance from a person resident in India. A NRI or a PIO may gift residential/commercial property in India to a person resident in India, a NRI or a PIO.

However, a foreign national of non-Indian origin resident outside India would need prior approval of the RBI to gift agricultural land/plantation/ farm house acquired by him in India.

• A person resident outside India i.e. a NRI, a PIO or a foreign national of non-Indian origin cannot acquire agricultural land/plantation/farm house in India by way of purchase.
• The name of a foreign national of non-Indian origin cannot be added as a second holder of a residential/commercial property purchased by an NRI or a PIO.
• Foreign national of non-Indian origin may acquire only residential accommodation on lease, for not more than five years.

• An NRI or a PIO may acquire residential/commercial property by way of gift from a resident of India, an NRI or a PIO.  However, a foreign national of non-Indian origin resident outside India cannot acquire residential/commercial property in India by way of gift.

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