in recent years, it has been shown that non-resident indians (nri) are very interested to buy properties in india. the value of rupee in the world market is one of the main reasons why nris choose to invest in the real estate market in india. not only that, a part of them wants to have a home here in india because of the emotional connection they have with the country to which they belong. 

procedure for nri and foreigner to buy a property in india are as follows: 

non-resident indians (nri) 

when buying a property in india, the nris must comply with the rules established by the constitution of india under the fema act (foreign exchange management act). according to fema, an nri can own residential and commercial properties in india, and they can own as many properties as they want. however, the rules restrict nri to purchase agricultural land, farms, and plantations in india. an nri can possess such properties, only if it is endowed or inherited. 

an nri has to provide a power of attorney (poa) from the developer that favours them, in case of buying an under-construction property. this makes the documentation work faster and easier. it can be granted to implement any contract, mortgage, lease, or even sale. under fema rules, an nri can sell, commercial, residential property, agricultural properties, plantations or inherited agricultural lands to resident indian to buy it. 

in addition to the fema rules, there are some specific rbi guidelines on the repatriation of the sale that must be followed when selling a property in india. according to the set of rules, if someone wants to repatriate, they must come in foreign currency from a bank account abroad, an nre (non-resident rupee) account. also, it cannot exceed the amount of money that is paid through banking channels while buying the property and an nri cannot repatriate for more than two properties. 

foreign nationals 

the foreign nationals residing outside india are not eligible to buy properties in india. the foreign citizen who is residing in india can buy a property in india without a need for approval from rbi, but they have to check once if they require any permission before acquiring a house in india. citizens from pakistan, bangladesh, sri lanka, afghanistan, china, iran, nepal, or bhutan who are resident in india can only purchase immovable property in india with the special permission of the rbi and government of india. 

according to the fema act, the foreigners should follow the two conditions to be considered as a resident of india and buy india property. the foreigner must reside in india for more than five months (182 days) during the financial year. they can stay in india continually for 182 days as an employer or doing business or enjoy the vacation or any for any other purpose to prove their intention to reside in india. 

property buying document checklist for nri in india 

a lesser-known topic is nri property investment. the reason is that it is considered too hard for a many to fathom. nri property investment rules and regulations differ. two main reasons exist to nri property investments:  

• nri's want to settle after their retirement in india 

• they are safe and secure to invest their hard-earned money in india in comparison with their home country. 

what documents should an nri check in india when purchasing an estate? 

the list of documents required to buy properties in india by nri is as follows: 

• title deed (in the name of the seller) 

• building plan sanctioned 

• certificate of commencement 

• certificate of occupancy 

• receipts paid for tax 

• certificate of encumbrance 

• documents of khata/mutation 

list of required documents at registration time 

1. pan card  

2. pio or oci card 

3. passport 

4. passport size photograph 

5. address proof 

however, a property is an excellent tax-saving tool for both resident indians and non-residents to get high rents and returns. an nri can also have tax savings by investing in the indian real estate market. do you like to buy home in hyderabad?  visit https://propertyadviser.in, india's first-ever real estate property directory, which gives you 100% verified information of all apartments, villas, independent houses and plots for sale in hyderabad. its smart filters tool helps you to buy a home as per your requirements such as property location, budget range, type, size, etc. visit our real estate directory portal now to find your dream home quickly. 

frequently asked questions: 

can a resident continue to hold real estate property outside india which was purchased by him when he was a non-resident? 

according to section 6(4) of the fema, a person resident in india can hold, own, transfer or invest in any property situated outside india if such property was acquired, held or owned by him/ her when he was resident outside india or inherited from a person resident outside india. 

who are not subject to the restrictions on property transfer outside of india? 

the ban on the acquisition of property outside india by a resident is not applicable when: 

• the resident is a foreign citizen 

• the property was purchased before 8 july 1947 and managed to keep after permission was obtained 

• if the property is purchased on lease, then it should not more than five years old 

by: shailaja k