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Buying or Inheriting Property in India as a Foreigner: What’s Allowed?
India has specific laws and restrictions regarding foreign nationals owning or inheriting property. It’s important to know where you stand legally before investing or accepting inherited real estate.
1. Can Foreigners Buy Property in India?
Generally, only Non-Resident Indians (NRIs) and Overseas Citizens of India (OCI) can buy residential and commercial property in India. Foreigners on tourist or business visas cannot purchase property.
2. Exceptions for Long-Term Visa Holders
In rare cases, foreigners with long-term employment or residence visas may be permitted to acquire property with prior approval from the Reserve Bank of India (RBI).
3. Agricultural and Plantation Land
No foreigner, including OCI holders, can purchase agricultural land, farmhouses, or plantation property unless it is inherited through legal succession.
4. Inheriting Property in India
Foreign nationals can inherit property in India from a relative, provided the inheritance complies with FEMA and RBI guidelines. Proper documentation must be submitted to legal and tax authorities.
5. Power of Attorney and Leasing
Some foreigners attempt to lease or acquire property through power of attorney or shell arrangements. These can be challenged in court and are often invalid.
6. Legal Risks and Red Flags
- Fake title deeds or misrepresented ownership
- Use of proxy buyers (benami transactions)
- Not checking encumbrance or municipal approval
7. Tips Before You Proceed
- Consult a real estate lawyer before signing anything
- Ensure RBI compliance and ask for written approvals
- Beware of agents offering 'loopholes'—they're risky
See also: Common Legal Scams Targeting Foreigners in India
Main guide: Legal Guide for Foreign Nationals in India
Dispute help: How to Get Legal Help in India