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HOME. Frequently Asked Questions (FAQs)
Frequently Asked Questions (FAQs)
A non-resident is someone from India who lives abroad for employment, business, or other reasons, or whose stay abroad is uncertain in duration. This classification also applies to those representing U.N. organizations or sent abroad by government entities for temporary assignments. Non-resident foreign citizens of Indian origin are treated like non-resident Indian citizens (NRIs)
A person of Indian origin refers to an individual who meets one of the following criteria:
- Had an Indian Passport at any point.
- Was themselves, or had a father or paternal grandfather who became a citizen of India under the Constitution of India or the Citizenship Act, 1955.
The Overseas Citizenship of India (OCI) is an immigration status that allows foreign citizens of Indian origin to reside and work in the Republic of India for an unlimited duration
Yes. NRIs can buy and sell residential and commercial properties in India
There is no limit to the number of residential or commercial properties that an NRI can possess in India. However, the law prohibits NRIs from acquiring agricultural land, plantation property, or farmhouses in India
Yes. A foreign national who is not of Indian origin, including citizens of countries like Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Hong Kong, Macau, Iran, Nepal, or Bhutan, is allowed to lease residential property for a duration of up to five years without requiring prior approval from the Reserve Bank of India
NRIs and POIs can acquire residential or commercial properties in India without seeking prior approval from the RBI, except for agricultural land, farmhouses, or plantation properties. However, if an individual residing abroad purchases property for business purposes in India, they are required to submit a declaration using Form IPI to the Reserve Bank within ninety days from the date of property acquisition
The Reserve Bank of India has outlined the following guidelines for granting housing loans to Non-Resident Indians:
- The own contribution, which is the cost of the dwelling unit minus the loan amount, should be sourced from direct remittances from abroad, facilitated exclusively through standard banking channels, your Non-Resident (External) [NR (E)] Account, Non-Resident (Ordinary) [NR (O)] account, and/or Non-Resident Special Rupee account [NRSR] in India.
- Loan repayments, encompassing both the principal and interest, as well as associated charges, must be remitted from overseas, using normal banking channels, your Non-Resident (External) [NR (E)] Account, Non-Resident (Ordinary) [NR (O)] account, and/or Non-Resident Special Rupee account [NRSR] in India
Yes, it’s generally recommended to assign a Power of Attorney in India to act on your behalf for dealings in the country. The Power of Attorney document should be created based on the templates provided by the housing finance company, and it’s crucial to select a person you trust to hold this authority.
Yes. The Reserve Bank has provided non-resident individuals (foreign citizens) of Indian origin with general authorization to transfer their immovable property in India as a gift to relatives and charitable trusts/organizations. This authorization is contingent upon their compliance with the provisions of any other relevant laws, such as the Foreign Contribution (Regulation) Act, 1976, and applicable stamp duty laws
Yes, the Reserve Bank has granted a general allowance for the leasing of any immovable property in India. The rental income or returns from investments using that income can be repatriated, but this is subject to tax payments and the submission of a certificate issued by a chartered accountant, in consultation with an Authorized Dealer, such as a bank, to complete the required procedures.
The cost of the purchase must be covered using either foreign currency received through regular banking channels or funds available in NRE/FCNR/NRO accounts held with Indian banks
