Can Foreigners Buy Property in India? Rules for NRIs, OCIs and Foreign Investors

Yes. Non-Resident Indians (NRIs) can generally purchase residential and commercial properties in India without prior RBI permission. They can buy: Flats, apartments, houses and residential plots. Shops, offices and commercial buildings. However, NRIs cannot purchase agricultural land, plantation property or farmhouses under the general FEMA permission. They may inherit such property subject to applicable FEMA and state laws.

Yes. Overseas Citizens of India (OCI) cardholders can generally purchase residential and commercial property in India. However, they cannot purchase agricultural land, plantation property or farmhouses under the general permission. Important: Purchasing agricultural land is restricted, but inheritance may be permitted under applicable FEMA provisions and state laws. An OCI card is not Indian citizenship; it provides specific rights under Indian law.

Foreign nationals who are neither NRIs nor OCI cardholders and reside outside India generally cannot freely purchase property in India. However, they may become eligible if they qualify as a person resident in India under FEMA, subject to applicable restrictions. The 182-day test alone is insufficient; the purpose of stay, visa status and other legal conditions must also be considered. Citizens of certain restricted countries may require prior RBI permission, even if they reside in India.

Under the relevant FEMA provisions, citizens of the following countries face special restrictions on acquiring or transferring immovable property in India without prior RBI permission, subject to applicable exceptions: Pakistan Bangladesh Sri Lanka Afghanistan China Iran Nepal Bhutan Hong Kong Macau North Korea Generally, permitted leases of up to five years are treated differently. Certain long-term visa holders may qualify for specific exceptions. OCI cardholders are treated under the applicable OCI rules rather than being automatically disqualified solely because of their foreign citizenship. Other restrictions still apply.

Yes. A child born abroad to Indian-origin parents may inherit property in India, depending on the applicable succession law, the child's legal status and FEMA requirements. An overseas birth does not automatically confer Indian citizenship or OCI status. Inheritance of agricultural land may also be permitted in qualifying circumstances, even where purchasing such land is prohibited. The beneficiary must verify the applicable FEMA provisions and state land laws. Inheritance and the subsequent sale or transfer of property are separate legal matters.

A gift deed is a legal document used to transfer property voluntarily without monetary consideration. Under Section 122 of the Transfer of Property Act, 1882, a valid gift requires acceptance by the recipient. Gifts of immovable property generally require a registered instrument signed by or on behalf of the donor and attested by at least two witnesses. NRIs and OCIs may receive gifts of permitted property from eligible donors, subject to FEMA rules. However, a gift deed cannot be used to bypass restrictions on agricultural land. The donor, recipient, relationship and property category must be checked before the transfer.