Yes, a foreign citizen can legally inherit property in India. If your son or daughter has taken another citizenship, they can still inherit your flat, your house or your farmland, pay no tax on receiving it, and pay 12.5 per cent on a long-term gain if they later sell. The Foreign Exchange Management Act lets a person living outside India hold any immovable property inherited from a person who was resident in India.

Taking another citizenship does not disqualify an heir under Indian succession law. The passport matters later, under the foreign exchange rules, in three places: whether the Reserve Bank has to approve first, who may buy inherited farmland, and how the sale money leaves India.

Where this page sits

If a bank has asked you for a succession certificate, or you are moving an inherited property into your name from abroad, we have a guide for each. A parent planning ahead can read how to make a will for Indian assets.

Related guides:

• How an NRI transfers inherited property in India
• How an NRI gets a succession certificate in India
• Can an NRI make a will in India

Can a Foreign Citizen Inherit Property in India?

Yes, a foreign citizen can inherit property in India under the same succession law as the rest of the family. For a Hindu, Sikh, Jain or Buddhist family, the Hindu Succession Act, 1956 disqualifies a murderer (section 25) and a convert's descendants (section 26), and section 28 says no person shall be disqualified from succeeding to any property "on any other ground whatsoever".

Section 6(5) of the Foreign Exchange Management Act, 1999 allows a person resident outside India to hold, own, transfer or invest in any immovable property in India that was inherited from a person who was resident in India. That covers a US, Canadian or British citizen who holds no OCI card.

Rule 24(c) of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 allows an NRI or an OCI cardholder to acquire any immovable property in India by inheritance, from a person resident in India or from a person resident outside India who had acquired it lawfully.

Does Your Passport Change the Answer? OCI, US, Canadian and UK Citizens

Your passport and your OCI card decide which rule you inherit under, and for citizens of eleven countries they decide whether the Reserve Bank must approve first. An OCI cardholder is a person resident outside India registered as an Overseas Citizen of India Cardholder under section 7A of the Citizenship Act, 1955.

Which Citizens Need the Reserve Bank's Permission First?

Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Hong Kong, Macau and North Korea need the Reserve Bank's prior permission to acquire or transfer immovable property in India, other than a lease not exceeding five years. That is rule 31 of the NDI Rules, as set out in the Reserve Bank's Master Direction on acquisition or transfer of immovable property. "Citizen" there includes a company or other legal entity.

The rule does not apply to an OCI cardholder. A citizen of any of these eleven countries who holds an OCI card therefore inherits without applying to the Reserve Bank. A US, Canadian or British citizen is not on the list and needs no permission to inherit from a parent who was resident in India.

Can Foreign Citizens Inherit Agricultural Land in India?

A foreign citizen can inherit agricultural land in India, along with a farm house or plantation property. Rule 24(c) lets an NRI or an OCI acquire "any" immovable property by inheritance, and section 6(5) of FEMA covers any immovable property inherited from a person resident in India.

Under rule 24(a) and (b), an NRI or an OCI may purchase, or take as a gift, only property other than agricultural land, a farm house or plantation property. There is no such restriction on inherited property.

Can Foreign Citizens Sell Inherited Property in India?

An heir living abroad can sell inherited property in India, and the buyer is restricted only where the property is farmland. Under rule 24(d) and (e) of the NDI Rules, an NRI or an OCI may transfer any immovable property to a person resident in India, and may transfer property other than agricultural land, a farm house or plantation property to another NRI or OCI.

Inherited farmland is therefore sold or gifted only to a person resident in India, and state land laws may restrict the buyer further. On any sale by a non-resident heir, the buyer deducts tax at source before paying the seller, and our guide to TDS on the sale of property by an NRI explains how that deduction works.

Can You Transfer Sale Proceeds Abroad From Inherited Property?

The sale money can go abroad, through one bank, up to USD 1 million in each financial year for each heir. Rule 29(1) of the NDI Rules requires the Reserve Bank's permission to repatriate the sale proceeds, and for a seller living abroad that permission is the Remittance of Assets facility in the Reserve Bank's Master Direction on remittance of assets.

This limit applies to each heir separately. Two heirs selling a shared flat each remit within their own USD 1 million a year, and each uses one bank for every instalment. Under the Direction, a PIO includes an OCI cardholder and the child or grandchild of an Indian citizen. Before sending the money, the bank asks for documents showing where it came from and that the tax on the sale has been paid.

What Are the Tax Implications for Foreign Citizens Inheriting Property?

India has no inheritance tax or estate duty. The Income-tax Act, 2025 excludes property received under a will or by way of inheritance from taxable receipts, so tax arises only when the heir sells.

On that sale, the heir's cost is what the previous owner paid for the property, plus the cost of any improvements, and the holding period includes the time the previous owner held it. Land or a building becomes a long-term asset after more than 24 months. A home the parent owned for years has therefore passed the "2 year rule" on the day it is inherited.

A long-term capital gain on land or a building is taxed at 12.5 per cent. The buyer deducts tax at source from the payment to a non-resident seller, and our guide on tax on inherited property for NRIs covers the tax side in more detail.

Do You Need a Will, a Succession Certificate or Probate to Inherit From Abroad?

If your parent left a valid will, the person it names inherits the property. If there is no will, the deceased's personal succession law decides who the heirs are, and that law is the Hindu Succession Act for a Hindu, Sikh, Jain or Buddhist, Muslim personal law for a Muslim, and the Indian Succession Act, 1925 for Christians, Parsis and others.

A bank, a Sub-Registrar or a housing society may ask for probate or a succession certificate before it moves an asset into the heirs' names. For an heir abroad, our guides cover the succession certificate for an NRI and transferring inherited property from abroad. Parents can plan for it now with a will for Indian assets.

How Does WillJini Handle an Inheritance When the Heir Lives Abroad?

The first question in an inheritance with an heir abroad is which rule applies, and the answer depends on the passport, the OCI card and where the parent lived. Every heir has to sign, including those abroad, and a declaration or power of attorney signed abroad has to be made usable in India. A bank, a Sub-Registrar or a society may ask for a succession certificate or probate, which WillJini estimates takes about 6 to 12 months, depending upon location, complexity of assets, and cooperation of all family members. At the sale, farmland can go only to a resident buyer, the money leaves through one bank within the yearly limit, and the buyer deducts tax before paying.

WillJini's inheritance assistance for NRIs is designed to complete the legal and procedural work without repeated travel to India, and it runs in four published steps:

1. Legal review and case roadmap. A detailed consultation establishes what assets are involved, who the legal heirs are and whether a will exists, and WillJini builds a step-by-step legal roadmap for the case.
2. Legal heir confirmation and coordination. WillJini's team identifies the legal heirs, gathers the declarations required and coordinates across family members, even when they are spread across countries, with embassy or e-signature support.
3. Legal filings and government liaison. WillJini handles court filings such as succession and probate, liaises with banks, the Sub-Registrar and other authorities, and drafts the affidavits and powers of attorney the case needs.
4. Asset transfer and title updates. Once approved, WillJini executes the transfer of the properties, bank accounts, lockers and investments into the heir's name, and guides on FEMA, tax and the documents for a future sale where needed.

The fee depends on the case and is quoted on enquiry.

FAQs

Can an OCI holder inherit property in India?

An OCI cardholder may inherit any immovable property in India, agricultural land included, under rule 24(c) of the NDI Rules, 2019. The Reserve Bank permission that rule 31 requires of citizens of eleven countries does not apply to an OCI, whatever the cardholder's nationality.

What is the 2 year rule for inherited property?

Land or a building is a long-term capital asset once it has been held for more than 24 months, and for inherited property the previous owner's holding period counts. A home a parent held for more than 24 months is already a long-term asset when the heir receives it, and a long-term gain is taxed at 12.5 per cent under the Income-tax Act, 2025.

Can an NRI inherit property in India?

An NRI can inherit any immovable property in India, including agricultural land, a farm house or plantation property, under rule 24(c) of the NDI Rules, 2019. The same rule covers an OCI cardholder.

Can my brother still inherit our father's property if he takes UK citizenship?

Your brother still inherits, because taking UK citizenship does not disqualify an heir under the Hindu Succession Act, 1956, which governs a Hindu, Sikh, Jain or Buddhist family. FEMA section 6(5) then lets him hold the property as a person resident outside India, since he inherited it from your father, who was resident in India.

Can an OCI holder sell inherited farmland?

An OCI cardholder can sell or gift inherited agricultural land, a farm house or plantation property only to a person resident in India, under rule 24(d) and (e) of the NDI Rules, 2019. Other inherited property may also go to an NRI or another OCI.