Foreign nationals looking to buy property in India have to abide by certain obligations and regulations. While buying a property directly is not possible for foreigners, there are, luckily, certain exceptions.
This blog helps you discover the rules, exceptions, don’ts, and processes for buying property in India as a foreigner. A key note to remember is to stay updated with government regulations and seek legal help. If you are not able to buy a property, then make an investment and reach your goal.
Can foreigners buy property in India? What will be the process?
As a foreigner buying property in India, it may be a roller coaster ride. However, there are few ways in which foreigners can buy property in India.
In general, foreigners on tourist visas and foreigners living outside India cannot buy property in India. But there are a few exclusions.
Resident Foreigners
If you are a foreigner who is on a long-term visa and has spent around 180 days residing in India annually, then you are eligible to buy a property in the country.
Officials can purchase property in India. For other foreigners, there is one restriction. They can purchase the property from an Indian resident but will face difficulty selling it.
Non-Resident Foreigners
Foreigners who don’t hold citizenship in India cannot buy property in India unless they are an NRI or a person of Indian origin. Non-resident foreigners are people who don’t stay in India and are restricted from purchasing any property in India.
Exclusion
Non-resident India
NRIs can purchase any type of property in India freely with no restrictions. However, they cannot buy agricultural properties, plantations, or farmhouses.
Persons of Indian Origin
PIOs enjoy all the rights that a NRI has related to buying properties.
The Process of Buying Property in India as an NRI/PIOs/Foreigner/and Long-term Visa Holders
As mentioned above, only PIOs and NRIs are eligible to purchase property in India. Additionally, other foreigners who have the privilege of long-term visas and have settled in the country for one hundred and eighty days can purchase property in India.
Seek a lawyer.
Make sure to seek out a lawyer after researching. Look for a local lawyer in the area of the property who is aware of international property policies and state regulations. Make sure you have legal navigation throughout the process.
Get the legal documents.
The legal documents include a PAN card, bank statement, PIO card, passport, passport-size photocopies, present address proof, tax proof, and housing society agreement (if applicable).
Property picking and negotiation
Research the value of the property of interest and negotiate the price. Make sure you tag an attorney or some local friend you trust.
Verification of the Title Deed
The title deed should be carefully verified to prevent any obstacles during the purchase. Your lawyer will take care of the verification process.
Agreement of Sale
Once the terms and conditions are revised and concluded by both parties, the lawyer will work on the outline regarding the details of the purchase and payment schedule.
Payment
According to the regulations of the RBI, the funds for an NRI to purchase the property must be transferred from the NRI’s authorized banking channels.
Registration
Once the payment is completed, the registration process will be carried out in the local sub-registrar’s office. There is a registration charge, and stamp duty has to be paid.
Possession
After registering the sale agreement, the property is now yours.
This is the general process for a foreigner to buy property in India.
Types of Property Restricted for Foreigners
Foreigners cannot buy three types of property in India. These are plantations, farming houses, and agricultural properties.
Agricultural property
Agricultural properties include the soil that is used for the cultivation of fruits, vegetables, crops, and other products. It is restricted for foreigners to buy agricultural properties.
Plantation
Plantations, including tea, coffee, chocolate, rubber, and other plantation products, cannot be purchased by foreigners.
Farmhouses
Farmhouses are properties that are used for rearing cattle or allied activities. Foreigners cannot buy these properties.
You can also check with real estate lawyers and look up the Foreign Exchange Management Act to understand the regulations.
Exceptions for NRI/PIOs/Foreigner/and Long-term Visa Holders for Purchasing Property
The exceptions to purchasing property as a foreigner in India include:
Long-term visa residents
Residents staying in India for more than 180 days can get a residential property by obtaining approval from the government.
Inheritance
Foreigners can purchase and inherit property from an Indian citizen if possible. However, there are certain complications when selling the property.
Diplomatic Status
Under unique, well-sorted guidelines, diplomats and particular foreign officials can buy property for personal use in India.
NRIs and PIOs
NRIs and PIOs can purchase property seamlessly, except agricultural, plantation, and farmhouse property.
Benefits of Investing in Indian Real Estate for Foreigners
As a foreigner, there may be several obligations when purchasing a physical property. However, investing in real estate can benefit you in the long run.
The Indian real estate market can help you increase portfolio diversification, have a high capital appreciation, friendly government policies, fast urbanization, simple taxation procedures, and a stable policy environment for foreigners. Hence, it is suggested that foreigners invest in real estate.
Conclusion
In the end, foreigners who are not PIOs and NRIs cannot directly purchase property in India. However, NRIs and PIOs also have certain obligations and rules to follow when purchasing a property. It is important to seek help from a legal advisor and move forward with the procedure. Investing in real estate can be beneficial, as it helps in the long run.
FAQs
1. Can I buy a house in India without citizenship?
In general, you cannot buy a house in India without citizenship unless you are an NRI or PIO.
2. Can overseas citizens of India buy property?
Yes, citizens of India living outside the country can buy property in the country by following certain rules.
3. Can I buy property in India as a Canadian citizen?
Canadian citizens living outside India cannot directly buy property in the country.