Can Foreigners Buy Property in Mumbai? Here's What You Need to Know

Can foreigners buy property in Mumbai, this is a question that may revolve in the minds of many. And why not the bustling real estate market is extremely sought-after. But before making a decision, one must know the complexities around property ownership, especially if they are not of Indian origin. Today, we are going to cover all the legal intricacies that one should know about in order to gain valuable insights and make informed decisions about their real estate investments in Mumbai. Let’s discuss.

Can Foreign Nationals Invest in Property in Mumbai?

A straightforward answer to the question - Can foreigners buy property in Mumbai would be ‘no’ as it is quite difficult for foreigners to buy property in India. Non-residents, except those of Indian origin, cannot buy property. Even if someone stays in India for 182 days or less, they need permission from the Indian Reserve Bank to buy property. This rule applies to foreign nationals, their companies, or if they are buying with an Indian citizen. Permission is given case by case, and the rules are unclear and change often.

Basically, foreigners can buy property if they are clearly settled in India, meaning they have a long-term work permit, stable job, and have lived in India for at least 183 days a year. This requirement is tough as long-term visas now restrict stays to 180 consecutive days.

Note: Citizens of certain countries need permission from the Reserve Bank regardless of their stay duration. Also, it is wise for foreign buyers to get Indian residency and hire a lawyer before buying property. If the purchase is deemed illegal, even if done in good faith, the money paid will be lost.

Can Indians Living Abroad Buy Property in India?

Yes, Indians living abroad, known as Non-Resident Indians (NRIs), can buy property in India. This includes residential land, homes, or flats, but not agricultural land, plantations, or farmhouses. An NRI is someone who lives outside India for more than 182 days a year.

NRIs can also transfer property to:

•       Another NRI
•       A person of Indian origin living abroad
•       An Indian citizen residing in India

Only Indian citizens who are permanent residents in India can buy agricultural land, plantations, or farmhouses. If NRIs inherit these properties, they must transfer them to a permanent resident Indian citizen. However, the buyer might still have to demonstrate their farming background or deep connection to the land, depending on state regulations. This implies that individuals from foreign countries, including Indian citizens residing abroad, are not allowed to purchase any type of agricultural properties.

Clarity on Property Purchase for NRIs and OCIs

Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) often encounter misinformation regarding the property buying process. Contrary to rumours, the process for both Indian residents and their overseas counterparts remains identical. This includes the ability to secure a local bank mortgage, with most banks offering loans to NRIs and OCIs, using the property as collateral. When buying property under general permissions (excluding agricultural land), NRIs and OCIs do not need prior approval from the Reserve Bank.

However, if they prefer using funds from outside India, they must open an NRI Account, which encompasses three types: NRE (Rupee Repatriable), FCNR (Dollar, Pound, Euro, Yens, CAN dollars & AUS Dollars), and NRO (Rupee Non-Repatriable).

Documents Needed for NRIs to Purchase Property in India

The specific documents requested by sellers may vary, but if you are an NRI applying for a home loan, banks typically require:

•       PAN Card
•       Passport for signature and ID verification
•       Aadhaar card or utility bills for address confirmation
•       Salary statements or Income Tax returns as proof of income
•       Completed home loan application

It is crucial to carefully review the requirements for NRI home loans, as some banks may have specific criteria related to income and age.

Conclusion

We hope that this information and list of required documents will not only answer the question - can foreigners buy property in Mumbai but will also simplify the complicated process and you will soon be able to own a property in Mumbai and stay connected with your native land.