OCI Cardholder Rights
Overseas Citizens of India (OCI) cardholders have property rights similar to NRIs under FEMA. They can freely purchase residential and commercial property in India without prior RBI approval. The restrictions are the same as for NRIs: no agricultural land, plantation property, or farmhouses without specific RBI permission. OCI cardholders can also inherit all types of property, including agricultural land, though they cannot purchase agricultural land directly.
Foreign Nationals
Foreign nationals who are not NRIs or OCI cardholders face significant restrictions on property purchase in India. Under FEMA, they cannot acquire immovable property in India except: if they are resident in India (as defined under FEMA), or if they inherit the property from a resident Indian, NRI, or PIO. Foreign nationals who are residents in India (living and working in India with valid documentation) can purchase residential and commercial property for their personal use.
FEMA Compliance
All property purchases by NRIs, OCIs, and foreign nationals must comply with FEMA regulations. Key compliance requirements: payment must be through proper banking channels (NRE/NRO account or inward foreign remittance through an AD bank), the property type must be permitted for the buyer's category, and the transaction must be reported to the RBI if required. Non-compliance with FEMA can result in penalties and the transaction being declared void.
Practical Considerations
OCI cardholders buying property in Goa should: open an NRO account with an Indian bank for property-related transactions, obtain an Indian PAN card (required for property registration and tax compliance), engage a lawyer familiar with NRI/OCI property purchases, ensure all payments are routed through proper banking channels, and plan for tax compliance obligations in India. If you intend to use the property as a holiday home, also consider appointing a local property manager to handle maintenance and security during your absence.
Need Expert Guidance?
Our Goa real estate advisory team can help you navigate the market and find the perfect property.