Yes, he can purchase.
Sir, My boss is an American citizen but not an NRI. I would like your help to know if it is possible and if yes need your help to process it. Kindly let me know.
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Prior approval of Reserve Bank of India is needed by an American Citizen (Not an NRI, OCI), to buy a residential property in India.
Foreigner residing outside India cannot purchase immovable property in India but can acquire it through inheritance from an Indian resident. They may lease property for up to five years without RBI approval.
A foreigner of non-Indian origin cannot directly buy any residential or commercial property in India.
He can apply to the Reserve Bank of India (Foreign Investment Division) for permission to purchase immovable property for residential purpose.
The RBI examines such requests case by case and generally grants permission only for specific reasons (like long-term residence, diplomatic or business purpose).
Dear Client,
Under FEMA regulations, a foreign citizen who is not an NRI or OCI is not permitted to purchase residential property in India. Only NRIs and OCIs can buy residential/ commercial property. A foreign national (like your American boss) can only inherit property in India or take residential premises on long-term lease (up to 5 years), but cannot legally buy it in his name. If he wants ownership, the lawful options are: (a) obtain OCI status first, then purchase; or (b) invest through a registered Indian company for permitted real-estate/commercial projects (not simple residential acquisition). Therefore, direct purchase of a residential property in India by him is not allowed, and you should avoid any arrangement in violation of FEMA as it may attract penalties.
I hope this answer helps. For any more queries, do not hesitate to contact us.
A foreign citizen who is not an NRI (Non-Resident Indian) or OCI (Overseas Citizen of India) generally cannot buy residential property in India unless they have resided in India for at least 182 days in the preceding financial year under a valid visa and obtain prior approval from the Reserve Bank of India
NO, cannot buy residential property. Foreign nationals (non-NRI/OCI) are NOT eligible.
Key Rules:
Foreign national resident OUTSIDE India: Absolutely prohibited from buying any immovable property
Only exception: Inheritance with RBI approval
Cannot lease for >5 years either without RBI permission
What CAN be done:
Apply for OCI status (if eligible as person of Indian origin) → Then can buy
Lease property for <5 years
Buy commercial property with RBI case-by-case approval
If Boss Becomes Resident in India:
Must stay >182 days in preceding financial year with intent to stay for uncertain period
Then can buy residential property on state government approval (varies)
Bottom Line: Your American boss cannot proceed unless he obtains OCI status or becomes a resident of India for 182+ days. Residential property purchase by foreign nationals is legally restricted under FEMA.
- Since , he is neither and NRI nor OCI , then he cannot purchase the property in India.
- However, he can apply before RBI for the approval to buy the same.
Dear Sir,
If your boss wants to buy a house or apartment, he can apply to RBI under Regulation 4 of the above FEMA regulations.
RBI will consider:
Purpose (self-occupation, not investment)
Duration and nature of stay in India (e.g., if on long-term employment visa)
Source of funds (must be from foreign inward remittance through banking channels, not local borrowings)
Applications are made through:
The Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Central Office, Mumbai.
The form is a simple letter with supporting documents:
Passport copy, visa details, address proof
Employment or business reason for stay
Proposed property details
Proof of foreign inward remittance