Can foreign citizens
of Indian origin acquire or dispose of residential property by way of gift?
Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to
acquire or dispose of properties up to two houses by way of gift from or to a relative who
may be an Indian citizen or a person of Indian origin whether resident in India or not,
provided gift tax has been paid.
Can foreign citizens of Indian origin acquire commercial properties in India?
Yes. Under the general permission granted by Reserve Bank properties other than
agricultural land/farm house/plantation property can be acquired by foreign citizens of
Indian origin provided the purchase consideration is met either out of inward remittances
in foreign exchange through normal banking channels or out of funds from the
purchasers’ NRE/FCNR accounts maintained with banks in India and a declaration is
submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days
from the date of purchase of the property/final payment of purchase consideration.
Can they dispose of such properties?
Yes.
Can sale proceeds of such property be remitted out of India?
Yes. Repatriation of original investment in respect of properties purchased by foreign
citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted up to
the consideration amount originally remitted from abroad provided the property is sold
after a period of three years from the date of the final purchase deed or from the date of
payment of final instalment of consideration amount, whichever is later. Applications for
the purpose are required to be made to the Central Office of Reserve Bank within 90 days
of the sale of property in form IPI 8.
Can the properties (residential/commercial) be given on rent if not required for
immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in
India. The rental income or proceeds of any investment of such income has to be credited
to NRO account.
Can NRIs obtain loans for the acquisition of a residential house/flat from
financial institutions providing housing finance?
Reserve Bank has granted general permission to certain financial institutions providing
housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to
non-resident Indian nationals for acquisition of a house/flat for self-occupation subject
to certain conditions.
Can an authorised dealer grant loans to NRIs for acquisition of a residential
flat/house ?
Authorised dealers have been granted permission to grant loans to non-resident Indian
nationals for acquisition of house/flat for self-occupation on their return to India
subject to certain conditions. Repayment of the loan should be made within a period not
exceeding 15 years out of inward remittance through banking channels or out of funds held
in the investor’s NRE/FCNR/NRO accounts.
Can Indian companies grant loans to their NRI staff?
Reserve Bank permits Indian firms/companies to grant housing loans to their employees
deputed abroad and holding Indian passport subject to certain conditions. |
