Everyone is quite aware of who an NRI is. As far as property purchase is concerned, a Non-Resident Indians or NRI can purchase a property or house back in India. An NRI can purchase any type of property in India. An NRI can buy or receive an immovable property as a gift without the permission from the Reserve Bank of India or RBI. As far as purchasing an immovable property is concerned, the funds can be easily forwarded out of India, subject to foreign exchange.
NRI property investment requires a lot of planning and thinking. The real estate market has always proved to be lucrative as far as investment is concerned. It offers opportunities for investors to explore the real estate market that offers high returns. Both residents of India and Non-Resident Indian can invest in the immovable property.
Purchase and Inheritance of the Immovable Property
Generally, both the Person of Indian Origin (PIO) and Non-Resident Indian (NRI), are allowed to receive by way of gift or buy any immovable property in India. Besides, it is not necessary to seek permission from the Reserve Bank of India or RBI for the same. However, it is vital to seek permission from the RBI if an NRI wishes to purchase an agricultural land, farm house or any plantation property. Furthermore, both the PIO and NRI are allowed to inherit the any of the immovable property including an agricultural land and so on. Besides, you should also know that there is no restriction on the number of properties an NRI or PIO can invest or purchase.
As far as the payment is concerned, it is important to have been received in India through traditional banking channels through inward payment from any place outside India. Or the funds that are held in Non-Residential External (NRE) account, Non-Resident Ordinary (NRO) account or Foreign Currency Non-Resident (FCNR) account maintained in India.
Transfer of Immovable Property
As far as NRI investment in real estate is concerned, an NRI can transfer any of the immovable property by way of gift or sale to the residents of India or NRIs. However, if an NRI owns an agricultural land or farm house, then the same should be transferred to people of Indian origin alone.
To conclude, NRIs can acquire immovable property in India through inheritance from an individual who is a resident of India. Furthermore, the same can be transferred only with prior permission from the RBI. Go through the NRI corner if you have any queries.