Acquisition of Immovable Property – FEMA
Immovable property outside India

A person resident in India may acquire immovable property outside India-

a) By way of gift or inheritance from a person resident in India who has acquired such property before 08.07.1947 and who have held such property  with the permission of RBI, or

b) By way of gift or inheritance from a person resident in India who has acquired/held/owned such property when he was a person resident outside India or acquired by way of inheritance from a person resident outside India

c) By way of purchase out of foreign exchange held in Resident Foreign Currency (RFC) Account

d) Jointly with a relative who is a person resident outside India, provided there is no outflow of funds from India

e) Through the Liberalised Remittance Scheme

A person resident in India may acquire immovable property outside India, by way of inheritance or gift from a person resident in India, who has acquired such property in accordance with the foreign exchange provisions in force at the time of such acquisition.

Immovable property in India

A) Non Resident Indian (NRI)
NRI’s can purchase any immovable property other than agricultural land, plantation property and farm house in India. Payment for acquiring such property can be made through normal banking channels from outside India or by debit to the NRI’s NRE / FCNR (B) / NRO account. The NRI may transfer such property to a person resident in India / Indian citizen / PIO.

B) Person of Indian Origin (PIO)
PIO’s can acquire by way of purchase any immovable property other than agricultural land, plantation property and farm house in India. The PIO may sale such property to a person resident in India. Payment for acquiring such property can be made through normal banking channels from outside India or by debit to the NRI’s NRE / FCNR (B) / NRO account.

For repatriation of proceeds on sale of immovable property, go to Repatriation article.