NRI Guidance

Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) have always been active participants in India’s real estate sector. Today, the process of buying property in India is well-regulated and transparent under FEMA and RBI guidelines, making transactions simpler and secure.

Key Guidelines for NRIs:

• NRIs and PIOs can invest in residential and commercial properties, including apartments, townships, and office spaces. Agricultural land, plantations, and farmhouses are restricted.
• Foreign companies with approved offices in India can acquire property necessary for their operations, while liaison offices cannot.
• Citizens of certain countries—including Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, and Bhutan—require prior RBI approval to purchase or transfer property.
• NRIs can repatriate up to USD one million per financial year from their NRO accounts, including proceeds from inherited property, subject to tax compliance.
• Leases for up to five years are generally exempt from acquisition restrictions.

FAQs for NRIs:

1. What type of properties can NRIs buy in India?
NRIs can invest in apartments, residential complexes, commercial spaces, and townships. However, they cannot buy agricultural land, plantations, or farmhouses under FEMA regulations.

2. Is there a limit on the number of properties an NRI can own?
No. NRIs can own multiple residential or commercial properties in India, as long as the property type is permitted by law.

3. Which areas in Ahmedabad are ideal for NRI investment?
Urban localities like Shela, South Bopal, and other prime areas offer excellent infrastructure, strong growth potential, and well-planned projects. Developers like Happy Group provide carefully designed residential options in these regions.

4. Can NRIs transfer funds abroad after selling property?
Yes. NRIs can repatriate up to USD one million per financial year from their NRO accounts, including proceeds from inherited or settled property, provided they comply with taxes and FEMA rules.

5. Do foreign nationals need RBI approval to buy property?
Citizens of certain countries need prior approval from the Reserve Bank of India. Other foreign nationals can invest freely under FEMA regulations.

6. What happens if an NRI wants to lease property instead of buying?
Short-term leases up to five years do not require special approvals and can be a flexible option for NRIs not looking to invest long-term.

7. Where can NRIs seek guidance for property regulations?
For any operational or legal queries, NRIs can contact the Foreign Investment Division, Reserve Bank of India, Mumbai, which oversees property acquisitions and repatriation rules.