How to Buy Property in India as a Foreigner

India’s dynamic real estate sector is increasingly attracting interest from foreign investors. With rising infrastructure development, competitive property prices, and promising long-term returns, the Indian property market looks appealing to many overseas buyers. However, buying property in India as a foreign national involves navigating legal complexities and regulations.

In this blog, we’ll explore who can buy property in India, what the laws say, and how you can make a secure investment as a foreigner.

Who is Allowed to Buy Property in India?

As per Reserve Bank of India (RBI) guidelines under the Foreign Exchange Management Act (FEMA), only specific categories of foreigners are permitted to purchase immovable property in India. Let’s break this down:

1. Non-Resident Indians (NRIs)

NRIs are Indian citizens residing outside India.
Allowed to purchase residential and commercial properties
Not allowed to buy agricultural land, plantation property, or farmhouses

2. Persons of Indian Origin (PIOs)

PIOs are individuals with Indian ancestry but foreign citizenship.
Same property rights as NRIs
Cannot buy agricultural or plantation land

3. Foreign Nationals of Non-Indian Origin

These are people who have no Indian heritage and are not citizens of India.
Not allowed to buy property in India
Exception: They may inherit property or lease property for up to five years

4. Foreign Companies and Branch Offices

Can acquire property for business operations (with RBI approval)
Cannot buy property for personal or residential purposes

Legal Process for NRIs & PIOs to Buy Property in India

If you are an NRI or PIO looking to buy property in India, here’s the general step-by-step process:

1. Open an NRI Bank Account

You need an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account in India to manage funds.

2. Get Your PAN Card

A Permanent Account Number (PAN) is essential for property transactions, paying taxes, and registering the property.

3. Select the Right Property

Choose from residential or commercial property. Make sure the developer has:

RERA registration (Real Estate Regulatory Authority)

Clear legal title and approved layout plans

No pending litigations

4. Legal Due Diligence

Hire a property lawyer in India to:

Verify ownership and title documents

Check for encumbrances or disputes

Review land use approvals

5. Mode of Payment

Payments must be made through:

Banking channels in foreign currency

Funds in NRE/NRO/FCNR accounts

Cash transactions are strictly prohibited.

6. Register the Property

Property registration must be done at the local Sub-Registrar’s Office. You will need:

Sale deed

ID proof and PAN card

Passport-sized photographs

Proof of payment

Stamp duty and registration charges apply and vary by state.

Can a Foreigner Inherit Property in India?

Yes. Foreign nationals (including those without Indian roots) can inherit property in India from a person who was a resident. However, they still cannot purchase agricultural land or farmhouses.

Repatriation of Funds

NRIs and PIOs can repatriate the sale proceeds of up to two residential properties, subject to certain conditions:

Property must be purchased using foreign currency

Proceeds go through NRE account

Annual repatriation limit of USD 1 million (including other assets)

Key Legal Restrictions

Foreign nationals without residency in India cannot buy property

Agricultural land, plantations, and farmhouses are restricted for non-farmers

RBI approval is required in exceptional cases (e.g., business property by foreign companies)

🛡️ Tips for Safe Property Purchase in India

Always verify developer credentials

Ensure the property is RERA-registered

Use legal channels and avoid cash dealings

Consult a real estate lawyer

Conduct title search and encumbrance checks

Final Thoughts

Buying property in India as a foreigner is possible but highly regulated. If you are an NRI or PIO, you can invest confidently in residential or commercial real estate with the right legal guidance. However, full foreign nationals (without Indian origin) face strict limitations unless they inherit property or lease it for short-term business use.