Buy a Property in India - The Guide for Foreign Investors

Specific rules apply when you buy a property in India. Our Indian lawyers can assist you throughout the real estate purchase process. We offer services to nationals and foreign buyers.

Quick Facts
Foreigners can buy property in India	Subject to very clear residency rules; prohibited for citizens of certain countries.
Types of properties in India	Apartments, villas, townhouses, and others.
Real estate agent use	Yes
Real estate agent fees	The buyer and the seller are charged by the real estate broker.
Land ownership	Only subject to special approvals.
Deed registration	Yes
The agency with which the property deed is registered	The Sub-Registrar's office of the State registration department (Registration Act, 1908)
Provisional agreement	Can be used
Use of lawyers	Recommended
Initial deposit	Calculated as a percentage of the property’s value.
Property due diligence	Always advisable.
Property purchase costs (apart from the asking price)	Stamp duty and registration fees (set by each State; capital gains tax is due from the seller), plus municipal property taxes.
Reasons to buy property in India	Increasing demand, good appreciation in time, the option to rent/lease (passive income), as well as to secure housing for families interested in relocating to India.
Assistance for individuals	Our Indian lawyers assist Indian citizens and residents who wish to purchase properties in the country.
Assistance for investors/corporations	Corporations interested in knowing more about their real estate investment options in India can rely on our assistance.

Can I buy property if I am not an Indian resident?

Foreign nationals of non-Indian origin who reside outside of the country may only come to own immovable property by means of inheritance from an Indian resident.

Can I buy a property in India as a foreign national with residency rights?

Yes. If you have the right to reside in the country (under a specific visa plus residence permit), you may acquire property.

One caveat if you want to buy a property is that you must reside in the country for more than 182 days in the preceding financial year.

What are the conditions like for persons of Indian origin?

Under the general rules for property purchase, an Overseas Citizen of India (OCI) cardholder may buy residential and commercial property in India, but not agricultural land, plantations or farmhouses. OCI status is open, among others, to persons who once held Indian citizenship or whose father or grandfather was an Indian citizen according to law.

Non-resident Indians (citizens of India who reside outside the country) enjoy the same right to freely purchase property in the country.

Can I buy land in India as a foreign national?

Generally, no. The same applies to plantations or farmhouses.

Strict conditions apply to those looking to buy land, such as having specific residency rights or meeting clear requirements concerning their Indian origin.

What nationalities are prohibited from buying property in India?

Citizens of the following countries cannot buy property in India without the prior approval of the Reserve Bank of India: Afghanistan, Bangladesh, Bhutan, China (including Hong Kong and Macau), Iran, Pakistan, Sri Lanka, Nepal or North Korea (DPRK) (this does not apply to OCI cardholders).

Foreign nationals from the aforementioned countries can only lease property for a maximum period of 5 years.

What documents do I need to buy a property in India?

Generally, the following documents are required to buy a property in India:

identity documents (OCI/PIO card, passport);
passport-sized photographs;
proof of current address;
land titles, permits, and approval from authorities;
proof of paid taxes;
valuation certificate determining the property’s worth;
ownership transfer deed;
power of attorney;
agreement from housing societies or apartment complexes (if applicable).

Individuals must also obtain a Permanent Account Number (PAN) card, which is a unique identification number issued by the Indian government for financial transactions. It’s essential for buying a property in India and other financial activities.

Are there rules for the acquisition and transfer of the property in India?

Two means of payment are in place for the acquisition of a property, as summarized below by our lawyers:

Via funds received in India through usual banking routes (inward remittance from any place outside India);
Via funds placed in a non-resident bank account, kept in accordance with the laws in force (as amended by the Reserve Bank of India and in accordance with the foreign exchange management rules).

Those who buy property in India cannot pay via a traveller’s check or foreign currency notes. Special rules can apply in the case of non-residents who are persons of Indian origin.

Our team invites you to watch a short video on the property purchase requirements in the country:

Can I purchase property in India for carrying out a business activity?

With the right approvals, a foreign company doing business in India can acquire immovable property.

This is available for the branch of a foreign company, or another place of business excluding liaison offices.

The purchase is made by means of a foreign inward remittance, and the foreign company has the obligation to file a declaration in Form IPI with the Reserve Bank of India within 90 days of the purchase.

Does India offer a residency through real estate investment program?

No. Foreign nationals of non-Indian origin and who are not permitted to reside in the country (under a visa plus residence permit) are not granted Indian nationality or even residency if they make a real estate investment, regardless of its amount.

Contact us for more information about the services offered by our lawyers specializing in real estate.