Ownership rights for Non-Resident Indians (NRIs) regarding property in India are well-defined. NRIs are allowed to own property in India, which includes both residential and commercial properties. The acquisition of property is subject to certain conditions and restrictions as per the Foreign Exchange Management Act (FEMA) regulations.
NRIs can own property by:
- Purchase: NRIs can purchase residential and commercial properties in India, except for agricultural land, plantation property, and farmhouse. There is no restriction on the number of properties they can buy.
- Inheritance: NRIs can inherit property from a resident Indian or another NRI without any restrictions.
- Gift: NRIs can receive property as a gift from a resident Indian, NRI, or an Overseas Citizen of India (OCI). However, they cannot receive agricultural land, plantation property, or farmhouse as a gift.
- Repatriation: NRIs can repatriate the sale proceeds of up to two residential properties without any annual limit. The funds should be held in an NRO (Non-Residential Ordinary) account initially, and necessary documentation is required to repatriate the money.
- Financing: NRIs can also avail home loans from Indian financial institutions to purchase property. The loan amount, repayment, and interest rates are subject to the terms of the lending institution.
It’s important to note that NRIs cannot own agricultural land, plantation property, or farmhouse unless they acquire such properties through inheritance or as a gift. Additionally, certain states in India might have specific regulations and requirements, so it’s recommended to consult legal experts or authorized agencies when dealing with property transactions in India
