1. ACQUISITION OF
PROPERTY BY FOREIGNERS
- Priyanga.G
Altacit Global

2. • Governing Law- Foreign Exchange Management Act
1999.
• Section 6 (3) (i) of FEMA,1999 deals about persons
resident outside India acquiring immovable property
in India.
• Section 6(5) of FEMA 1999 says that’s a person
resident outside India can hold, own, transfer
immovable property situated in India.

3. Who are persons resident outside
India?
• Non- Resident Indians (NRIs) or
• Foreign national of Indian Origin (PIO) or
• Foreign national of non-Indian origin

4. NRI : An NRI is an Indian citizen
residing outside India.
PIO : A citizen of another country
is a PIO (person of Indian
origin) if he has held an
Indian passport at any time
or if he, his father or his
grandfather has been a
citizen of India.

5. Acquisition of immovable property in
India by a person resident outside India
i.e. by a NRI / PIO / foreign national of
non-Indian origin through -
i) purchase
ii) gift
iii) inheritance

6. • RBI does not permit acquisition of agricultural land,
farm house and plantation property by any person
resident outside India.
• Any other immovable property can be acquired by an
Indian citizen who is resident outside India, a person
of Indian origin, foreign diplomats, foreign embassies,
consulate generals and foreign corporate who have
established branches, liaison offices or any place of
business subject to fulfillment of certain conditions.
• Foreign corporate can acquire immovable property
provided the acquisition is for carrying on a permitted
activity.

7. Acquisition by way of Purchase
The Reserve Bank of India (RBI) has permitted the following
categories of NRIs/PIOs to acquire Immovable Property (other than
agricultural land, plantation or farm-house property) by way of
purchase, provided the payment is made out of Foreign Exchange
Inward Remittance or any Non Resident Bank Account in India, i.e.,
(Non Resident External (NR(E)), Foreign Currency Non Resident
Account (FCNR(B)) or Ordinary Non Resident Rupee Account a/c
(NRO) in connection with acquisition of Immovable Property in
India:
i. A Non Resident who is a citizen of India.
ii. A Non Resident who is a Person of Indian Origin (PIO).
iii. A Non Resident who has established in India a branch
office or other place of business (excluding a liaison) office.
There are no restrictions on the number of residential/commercial
properties that can be purchased.

8. Acquisition by way of Gift
General permission is granted to acquire any Immovable
Property (other than agricultural land, plantation or
farmhouse property) by way of gift from a person
(donor) who is:
A Person Resident in India, or
A Person Resident outside India (NRI) who is an
Indian citizen or foreign citizen of Indian origin.
Provided that applicable Gift Tax if any has been paid at
the time the immovable property is being gifted.

9. Acquisition by way of Inheritance
General permission is granted for inheritance of Immovable
Property including agricultural land, plantation or farm-house
property from:
A Person Resident in India, or
A Person Resident outside India who may be an Indian
citizen or Foreign Citizen of Indian Origin provided such
person had acquired the said property in accordance with
the provisions of Foreign Exchange Law in force at the
time of acquisition, i.e., FERA, 1973 or FEMA 1999.
Hence, agricultural land, plantation or farmhouse property
can be acquired by way of inheritance only.

10. Foreign Nationals of Non-
Resident Outside India Resident in India
Indian Origin
They do not meet the criterion of They meet the criterion of having
having resided in India for 182 stayed in India for a period of
Residential Status days or more. 182 days of more. They may
also be referred to as Persons
Not Permanently Residents.
Cannot purchase any Can purchase Immovable
Immovable Property in India. Property after obtaining the
Cannot be added as a second necessary approvals and
Acquisition of property in India
holder to a property purchased fulfillment of requirements, if any,
by an NRI/PIO. prescribed by the concerned
State Governments.
Can take up residential Prior approval of RBI necessary
accommodation on lease, for citizen of Pakistan,
provided the period of the lease Bangladesh, Sri Lanka,
does not exceed five years. In Afghanistan, China, Iran, Nepal
such cases, there is no and Bhutan, in addition to State-
requirement of taking any specific approvals. Such
Reserve Bank of India (RBI)
approval from the Reserve Bank requests are considered by the
Conditions
of India. Reserve Bank of India in
consultation with the Central
Government. Prior approval of
RBI not necessary for citizens of
countries other than those
mentioned above.

11. Thank You