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NRI FAQs

NRI guidelines have been prepared in order to address various issues relating to acquisition and transfer of immovable property in India by a person resident outside India under the provisions of the Foreign Exchange Management Act, 1999. These FAQs seek to cover the broad spectrum of issues relating to acquisition and transfer of immovable property in India by a non-resident Indian (NRI) or a foreign national of Indian origin (PIO) or a foreign national of non-Indian origin as also by a person resident in India who is not a citizen of India .

FAQ on acquisition of residential / commercial premises in India by Non-Resident Indians (“NRI”) & Person of Indian Origin (“PIO”)

Who is a non-resident Indian (NRI)?

An Indian citizen who stays abroad for employment, business, or any purpose indicating an intention for an uncertain duration is a non-resident. This includes individuals posted in the U.N. or deputed abroad by the Government or public sector undertakings. Non-resident foreign citizens of Indian origin are treated similarly for certain facilities.

  • A foreign citizen (except citizens of Pakistan or Bangladesh) is considered of Indian origin if they have held an Indian passport, or if their parents or grandparents were Indian citizens under the Constitution or Citizenship Act, 1955.
  • A spouse (except from Pakistan or Bangladesh) of an Indian citizen or PIO is also treated as a PIO, provided investments/accounts are jointly held with the NRI spouse.
  • Non-resident foreign citizens of Indian origin are treated similarly to NRIs for certain facilities.

No, they do not need RBI permission to acquire residential or commercial property (excluding agricultural land, farmhouses, or plantation property). However, a declaration must be filed within 90 days. Citizens of certain countries (Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan) require prior RBI permission.

For properties bought after 26 May 1993, repatriation is allowed up to the amount paid in foreign exchange for up to two properties. Any excess amount must be credited to the NRO account.

Yes. The property must be sold after 3 years from the date of purchase or final payment, whichever is later.

Applications must be submitted in Form IPI 8 to the RBI Central Office, Mumbai, within 90 days of the sale.

Yes, general permission is granted. If sold to another foreign citizen of Indian origin, payment must come through foreign remittance or NRE/FCNR accounts.

Yes. A declaration (Form IPI 7) must be filed with RBI within 90 days of purchase along with transaction documents and bank certificates.

  • Own contribution must come from foreign remittance or NRE/NRO/NRSR accounts.
  • Loan repayment (principal + interest) must also be through these channels.

Payment must be made through inward foreign remittance or via NRE/FCNR accounts in India.

Yes. Loans can be availed from authorized institutions and must be repaid within 15 years using NRE/FCNR/NRO funds or foreign remittance.

Yes, companies can grant housing loans to employees deputed abroad, subject to conditions.

Yes. It is recommended to appoint a trusted person in India. The PoA should follow the housing finance company’s format.

Yes. They can gift property to relatives or registered charitable organizations, subject to compliance with applicable laws.

Yes. Rental income can be repatriated after paying taxes and submitting a CA certificate through an authorized bank.

No. Rental income must be credited to the NRO account.

Yes. Indian nationals can purchase property in NRI City.

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