100% NRI Ownership in GIFT City: A Structured Advisory Note

By Rohit Prajapati, founder of TPZ India, 16+ years in Gandhinagar real estate · 2026-06-05

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Introduction: 100% NRI Ownership in GIFT City: A Structured Advisory Note

The question of 100% NRI ownership of GIFT City property requires a precise answer — because the term "GIFT City property" encompasses two fundamentally different asset classes, each governed by an entirely separate legal framework, and the ownership rules differ materially between them.

Disclaimer: This publication is for informational purposes only and does not constitute legal, tax, or investment advice. NRI property and investment structures involve jurisdiction-specific regulatory implications. Readers are strongly advised to engage qualified legal counsel and a FEMA-compliant chartered accountant before executing any transaction.

Executive Summary

For IFSC financial instruments — funds, FPIs, AIFs: SEBI's June 2024 amendment to the Foreign Portfolio Investors Regulations formally allows up to 100% contribution by NRIs, OCIs, and Resident Indians in FPIs based out of the IFSC in GIFT City. This was a landmark regulatory change that removed a previous 50% cap and opened a new chapter for NRI capital participation in Indian markets.

For residential property — flats, apartments, towers: NRIs and OCIs can legally buy residential and commercial property in India without any special permission from the RBI. There is no limit on the number of residential properties an NRI can own. 100% solo ownership is fully permitted. No Indian co-owner is required. This note addresses both in structured detail regarding property in Gandhinagar and specifically within GIFT City.

The Landmark 2024 Ruling: 100% NRI Ownership of IFSC Funds

This is the regulatory development that generated the most discussion around "100% NRI ownership" in GIFT City — and it applies specifically to financial investment vehicles, not physical property.

The Securities and Exchange Board of India approved a move allowing NRIs and OCIs to own up to 100% in global funds domiciled at International Financial Services Centres. Previously, the combined holdings of NRIs and OCIs in a global fund were required to be less than 50%.

SEBI's June 2024 change allows NRIs and OCIs to contribute 100% of the corpus in funds seeking FPI registration, up from the previous 50% limit. This means NRI families can completely own and control global funds based in GIFT City. These funds can invest in Indian capital markets, providing a regulated avenue for NRIs to pool family wealth through professionally managed structures. Family offices particularly benefit from this flexibility.

The compliance requirement attached to this privilege: SEBI approved the availability of the 100% contribution limit subject to the condition that copies of PAN cards of all NRI/OCI individual constituents, along with their economic interests in the FPI, are submitted with the respective Designated Depository Participant.

What this means in practical terms: An NRI family office, a diaspora investment group, or an individual NRI investor can now establish or invest in a GIFT City-based fund — structured as an FPI or AIF — with 100% NRI/OCI ownership. This fund can then invest in Indian equities, bonds, and other capital market instruments. The previous 50% ceiling that forced fund managers to bring in third-party non-NRI investors to remain compliant has been entirely removed.

Residential Property: The 100% Solo NRI Ownership Position

For NRIs evaluating a GIFT City flat or apartment in Gandhinagar — the question of ownership structure is governed by FEMA's property regulations, not by SEBI's FPI framework.

The legal position is unambiguous:

NRIs can own unlimited residential and commercial properties in India.
NRIs can purchase residential and commercial properties without prior RBI approval.

As an NRI or OCI, there is no limit on the number of residential properties you can own. The primary restriction lies with agricultural or rural land — NRIs cannot purchase agricultural land, farmhouses, or plantation properties.

This means a single NRI can:

Buy a GIFT City flat entirely in their own name.
Hold 100% ownership without any Indian resident co-owner.
Own multiple GIFT City properties simultaneously without limit.
Do all of this without RBI prior approval.

No Indian co-owner is legally required. No minimum resident Indian shareholding exists for residential property. The requirement that sometimes creates confusion — the need for an Indian resident representative — applies to the transaction process through a Power of Attorney when purchasing remotely, not to the ownership structure itself for property in Gandhinagar.

Joint Ownership: What the Rules Say

While 100% solo NRI ownership is fully permitted, joint ownership is also explicitly allowed and carries its own framework.

NRIs are allowed to own property jointly with other NRIs, OCIs, or resident Indians. In joint ownership cases, each co-owner's contribution must comply with FEMA regulations. Maintaining proper documentation is crucial.

This creates three permissible joint ownership configurations for GIFT City residential property:

NRI + NRI: Two or more NRIs can jointly own a property. Each co-owner's funding must comply with FEMA — payments through NRE/NRO accounts or direct foreign remittance. Particularly relevant for NRI siblings or business partners co-investing in a GIFT City flat.
NRI + OCI: An NRI and an OCI cardholder can jointly own property. The OCI enjoys broadly the same property rights as an NRI for residential real estate.
NRI + Resident Indian: A common structure for families — an NRI parent or sibling jointly purchasing with an India-based family member. Each party's contribution must flow through their respective compliant channels.

The critical documentation requirement in all joint ownership situations: maintain clear records of each owner's financial contribution, sourced from FEMA-compliant accounts. This record becomes essential at repatriation — you can only repatriate an amount equivalent to your original foreign currency contribution.

What NRIs Cannot Own: The Restrictions That Apply

Completeness demands that the restrictions be stated clearly alongside the permissions.

Under FEMA regulations, NRIs and OCIs are prohibited from purchasing agricultural land, plantation property, or farmhouses in India. The only way to hold agricultural land is through inheritance from a person resident in India. Violating this rule can attract a penalty of up to three times the purchase price.

GIFT City residential apartments, commercial offices, and retail units are entirely outside this restricted category. The restriction has no practical bearing on a GIFT City property purchase.

One additional nuance on transfer between NRIs: an NRI can transfer property to another NRI, but only through inheritance or a gift. Direct sales or purchases between NRIs are not permitted under FEMA regulations. When an NRI sells a GIFT City flat, the buyer must be either a resident Indian or the transaction must comply with specific FEMA provisions — not a direct NRI-to-NRI commercial sale for any property in Gandhinagar.

The Ownership Structure Decision: Advisory Considerations

For NRIs approaching a GIFT City acquisition, the ownership structure decision warrants deliberate thought across three dimensions.

Dimension 1 — Repatriation Integrity: The cleaner the ownership structure, the smoother the eventual repatriation. Sole NRI ownership, with all payments documented from a single NRE account, creates the most straightforward paper trail for repatriation when the property is eventually sold. Joint ownership with a resident Indian co-owner can complicate repatriation — particularly the allocation of sale proceeds between the NRI's repatriable foreign exchange portion and the resident Indian's INR portion.
Dimension 2 — Estate and Succession Planning: An NRI can gift or transfer their residential or commercial property to a person resident in India, another NRI, or a Person of Indian Origin. For NRIs with India-based heirs, holding GIFT City property in sole name with a clear Will registered in India simplifies succession. For NRIs with only overseas heirs, joint ownership with another NRI or OCI may be more practical for their property in Gandhinagar.
Dimension 3 — Home Loan Eligibility: Sole NRI ownership is fully compatible with NRI home loans from Indian banks including SBI, HDFC, ICICI, and Axis Bank. Joint ownership with a resident Indian co-owner may in some cases improve loan eligibility or quantum — but the structural trade-off on repatriation must be weighed carefully.

IFSC Fund Ownership vs Property Ownership: The Integrated View

For NRIs with larger capital allocations to GIFT City, the two ownership frameworks — financial instruments and physical property — can be deployed in a complementary structure.

Ensure RERA approval and verify developer credentials before investing in physical real estate in GIFT City, following FEMA rules for NRIs. For financial investments, the post-2024 SEBI framework allows 100% NRI-owned fund structures that can access Indian capital markets from GIFT City's IFSC — a genuinely powerful vehicle for larger capital pools.

The integrated approach for a high-net-worth NRI family could combine sole ownership of a GIFT City residential flat — for capital appreciation, rental income, and potential personal use — with a 100% NRI-owned IFSC fund structure for portfolio investment into Indian equities and bonds. Each component serves a different objective, operates under a different regulatory framework, and together provides comprehensive GIFT City exposure across both real asset and financial asset classes, offering diverse options for property in Gandhinagar.

Final Thoughts from TPZ India

The short answer to the question posed is yes on both counts — with important precision. 100% NRI ownership of GIFT City residential property has always been permitted under FEMA and remains so in 2026. 100% NRI ownership of IFSC-based financial funds became permitted following SEBI's landmark June 2024 ruling. Together, these two frameworks give NRI investors a level of legal clarity and structural flexibility in GIFT City that is unmatched elsewhere in the Indian investment landscape.

The practical challenge is not permission — it is structure. Choosing the right ownership configuration, funding route, and documentation protocol at the point of acquisition protects the investment not just today, but at the point of eventual sale and repatriation.

TPZ India assists NRI investors in designing the right ownership structure for their specific profile — country of residence, family situation, investment horizon, and repatriation objectives — before the first payment is made for their property in Gandhinagar or GIFT City.

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TPZ India — Real Estate Advisory, Gandhinagar, Gujarat

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