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US citizen buying agriculture land in India

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  • US citizen buying agriculture land in India

    I'm US Citizen now. I did a lot of googling and understand very well that I (as a foreigner) can not buy agriculture land in India. But my parents and a brother live in India, we have some agricultural land and houses there. There is small piece of agricultural land next to the existing one so my father is insisting me buying it. I do want to buy as well, but the issue is that when my father will be gone in a few years then all property will get split between me & my brother. Is it OK to let my father buy this piece of land in his name and then make a "will" so it will come to my name so no split will happen on it? In fact, I had bought some land before when I was not US citizen so I think to add this piece also and hoping this would be my some passive income & peace of mind when I get old! Please advise and share any experience you may have.

    Thanks a lot.



  • #2
    You may buy this land and have your father give it to you as a gift. Given that it is agricultural land there is no property tax on it as well if he gives it to you as a gift.

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    • #3
      It is my understanding that non-Indian citizens cannot purchase agricultural land directly. However, one can get agricultural land/property especially ancestral property if executed thru a will.

      As a US citizen, IRIS expects everyone to report on global income/investments so if you do dealings with NRE/NRI those will get reported to the US govt. Repatriation of foreign funds may be a hassle if not legally done by the books.

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      • #4
        I think you should trust your father. Especially in the case you have a good relationship with him. Otherwise, you might have problems, ya? I also consider your honest talk about all the risks with your dad can be helpful. But again, only if you have already established good contact with each other.

        In case you will want to allow him to buy this piece of land and you might want to help him with his stuff -- there are good lincoln movers that can help you. So I suggest calling them and asking for their advice too.

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