Purchase of immovable property by Foreign Nationals

1. A foreign national of non-indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years.

2. A foreign national who is "a person resident in India' can purchase immovable property in India, but the person concerned would have to obtain the approvals, and fulfil the requirements if any, prescribed by other authorities, such as the concerned State Government, etc. However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank.

3. Under FEMA, "a person resident in India' is defined as a person residing in India for more than one hundred and eighty two days during the course of the preceding financial year (April - March) and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period. In other words, to be treated as ' a person resident in India' under FEMA, a person has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the preceding financial year ) but has also to comply with the condition of the purpose/ intention of stay.

4. A set of Frequently Asked Questions (FAQs) and answers on various issues relating to acquisition and transfer of immovable property in India by a person resident outside India and a person resident in India who is not a citizen of India, is on the website www.rbi.orq.in. The FAQs may please be referred to for further clarification.