Can NRIs Inherit Property in Kerala?
Yes. NRIs can inherit any type of property in Kerala including residential property, commercial property, agricultural land, plantation property, and farmhouses — even though they cannot purchase agricultural land or plantation property directly. Inheritance is governed by Indian succession laws, not FEMA purchase restrictions.
Succession Laws Applicable to NRI Property Inheritance
- Hindu Succession Act 1956: Applies to Hindus, Buddhists, Jains, and Sikhs
- Indian Succession Act 1925: Applies to Christians and Parsis
- Muslim Personal Law (Shariat): Applies to Muslims
- Will: If the deceased left a valid will, property passes as per the will regardless of religion
Steps for NRI to Claim Inherited Property in Kerala
- Obtain death certificate of the deceased
- Obtain legal heir certificate or succession certificate from the local court or tahsildar
- If there is a will, obtain probate from the High Court (required for immovable property)
- Mutate (transfer) the property in your name at the local village office (Taluk office)
- Update property tax records in your name
- Register the property transfer at the Sub-Registrar office if required
Can NRIs Sell Inherited Agricultural Land in Kerala?
Yes. NRIs who inherit agricultural land can sell it to an Indian resident. The sale proceeds can be repatriated to the NRI's NRO account and then repatriated abroad (up to USD 1 million per year after tax payment).
FEMA Rules for Repatriation of Inherited Property Sale Proceeds
- Sale proceeds credited to NRO account
- Repatriation up to USD 1 million per financial year
- Form 15CA and 15CB (CA certificate) required for repatriation
- TDS: 20% on long-term capital gains, 30% on short-term
- DTAA benefits may reduce effective tax rate
Managing Inherited Property from Abroad
NRIs managing inherited property in Kerala from abroad typically use a Power of Attorney (PoA) granted to a trusted family member or lawyer in Kerala. The PoA authorises the representative to pay property tax, manage tenants, execute sale agreements, and handle legal matters on the NRI's behalf.
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