Acquisition and transfer of Immovable property in India

Immovable property in India can be acquired / transferred by following persons:

Table A

Indian Nationals Resident In India	Non Resident Indian (NRI)	Persons of Indian Origin Resident Outside India
FEMA is not applicable	Can acquire any immovable property other than agricultural land/plantation/farm house Can transfer/sell immovable property including agricultural land/plantation/farm house to a person resident in India Can transfer/sell any immovable property other than agricultural land/plantation /farm house to an NRI/PIO resident outside India	Can acquire any immovable property other than agricultural land/plantation/farm house out of foreign currency funds or by way of gift Can acquire any immovable property including agricultural land/plantation/farm house by way of inheritance Can sell any immovable property other than agricultural land/ plantation/farm house to a person resident in India Can gift any residential or commercial property to a person Resident in India or to a PIO Resident outside India/an NRI. Can sell/gift any agricultural land/plantation/farm house to a person resident in India who is a citizen of India.

Notes:

Persons of Indian Origin do not include citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan.
NRI/PIO can borrow money from banks/approved housing finance companies for acquisition/repairs/renovation/improvement of residential accommodation in India.
NRI/PIO can repatriate equivalent to the amount of foreign exchange remitted into India at the time of purchase.
Payment by NRI/PIO for purchase of immovable property cannot be by way of foreign currency notes or travellers cheques.
NRI/PIO employees of Indian companies in India or their branches outside India can also take loans from their employers for purchasing housing property in India or abroad or for any other purpose other than for utilising in the following activities: -
1. Chit fund business
2. Nidhi company
3. Agricultural or plantation activity or in real estate business or construction of farm houses
4. Trading in TDR
5. Investment in capital market including margin trading and derivatives.

Table B

Foreign Citizens Resident In India

Foreign Citizens Resident Outside India

Indian Branch / Office of Person Resident outside India

No restrictions, except in the case of citizens of Pakistan, Bangladesh, Sri Lanka, China, Iran, Nepal, Afghanistan, Macau, Hong Kong & Bhutan who will require prior permission from RBI in all cases except where the immovable property is acquired by way of lease for less than 5 years.

RBI has also allowed acquisition of immovable property by Long-Term Visa Holders being citizen of Afghanistan, Bangladesh or Pakistan belonging to minority communities in those countries, namely, Hindus, Sikhs, Buddhists, Jains, Parsis and Christians who is residing in India and has been granted a Long-Term Visa (LTV) by the Central Government only one residential immovable property in India as dwelling unit for self-occupation and only one immovable property for carrying out self-employment subject to certain conditions.

Can acquire and transfer only after prior permission from RBI

Foreign Embassy/Diplomat/Consulate General

Can acquire and sell immovable property other than agricultural land/plantation property/farm house only after obtaining prior permission from the Ministry of External Affairs, Government of India and the consideration for acquisition is remitted from abroad

Can acquire immovable property which is required for carrying on its activities, a declaration in Form IPI will have to file with RBI within 90 days of such acquisition. Repatriation of sale proceeds requires prior RBI approval