Residence

Citizenship

Real Estate

Country information

Population: 1.438 Mill hab Aprox.

Capital: Nova Delhi.

Official Language: Hindi and English.

Income percapita: $10.020 Dólares PPA.

1. Who Can Buy Property in India?

• Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs): These individuals can buy property in India without too many restrictions. They must be citizens of foreign countries but hold Indian origin or have Indian ancestry.

• Foreign Nationals: Foreign nationals who are not of Indian origin are allowed to purchase property in India, but there are additional restrictions. Specifically, they must meet certain criteria, such as being a resident of India for a certain number of years.

2. Criteria for Foreign Nationals (Non-Indian Origin)

Foreign nationals who are not of Indian origin can buy property in India only under specific conditions:

• Resident Status: They must have stayed in India for at least 182 days during the preceding 12 months before the property purchase.

• Purpose: The property must be for residential purposes. Foreign nationals are not allowed to purchase agricultural land or farmhouses in India.

• Investment: The purchase must be made for residential or commercial purposes, and the foreigner should not be involved in agricultural or rural land purchases.

3. Types of Property Foreigners Can Buy

• Residential Property: Foreigners can buy residential property if they meet the residency requirement.

• Commercial Property: Foreigners can also buy commercial property if they meet the requirements for residential property.

• Agricultural Land: Foreign nationals are not allowed to purchase agricultural land unless they inherit it.

4. Financing the Purchase

• Funding the Purchase: Foreign nationals and NRIs can buy property in India with funds sent from abroad. They can transfer money through legal banking channels such as an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account.

• Indian Bank Loan: Foreigners are generally not eligible for home loans from Indian banks unless they are NRIs or OCIs. If they are eligible, the loan will have to be repaid using funds from their foreign earnings.

5. Documentation Required

• Proof of Identity: Foreigners must present a passport and valid visa.

• Proof of Address: This can be your address in the country of residence.

• Tax ID: Foreigners must apply for a Permanent Account Number (PAN) in India for property transactions.

• FEMA Compliance: The property purchase must comply with the Foreign Exchange Management Act (FEMA) regulations.

6. Ownership Restrictions

• Foreign nationals can only buy one residential property in India (as per the regulations). This means they are generally not allowed to own multiple properties in India.

• The property should be for personal use or for investment purposes (e.g., renting it out), but it cannot be used for agricultural activities or commercial farming.

7. Inheritance of Property

• Foreigners who inherit property in India, whether agricultural or residential, do not have to meet the residency requirement. They can hold the property as long as it was inherited legally.

8. Property Registration

• The purchase of property in India must be legally registered with the local sub-registrar office to complete the transaction. This process ensures the property is legally transferred to the new owner.

Summary:

• Non-Indian foreigners: Can buy property in India only if they meet the residency requirement (living in India for 182 days or more in the previous year).

• Agricultural land: Cannot be purchased by foreigners (except under specific conditions like inheritance).

• Financing: Generally, foreigners cannot avail themselves of loans from Indian banks unless they are NRIs.

• Documentation: Must provide PAN, passport, and other valid identification documents.

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