Understanding Leasehold vs Freehold Property in India for NRIs

The property conversion from leasehold to freehold does not attract any capital gain tax. However, you need to pay registration charges, stamp duty, and applicable conversion fees. Further, tax is imposed only when the property is sold or there is rental income generated from the property.

No, NRIS don't need to present physically in India for leasehold-to-freehold conversion. The conversion process can be done through a registered Power of Attorney (POA) holder, provided all requested documents are apostilled or notarised properly.

Yes, NRIs, subject to the local development authority and land-owning body rules, can convert a leasehold property into a freehold property in India. The process generally includes application, conversion charges, and registration of a conveyance deed.

Generally, for NRIs, freehold property is considered better. It is because it provides them with permanent ownership, fewer legal restrictions, and higher resale value. Although initially, leasehold property may be cheaper, it comes with renewal conditions and time limitations.

Yes, under the FEMA regulations, NRIs can buy both leasehold and freehold commercial and residential properties in India. However, there are restrictions on them for purchasing any type of plantation property, which includes agricultural land and a farmhouse.