NRIs have a major role in the Indian real estate market as investors. NRIs have always found investing in real estate to be a rewarding experience. The NRI property buyers are residing mostly in the Middle east, US, Singapore, Australia, UK, Canada and South Africa. The properties investments are made generally in Pune, Bangalore, Delhi NCR, Ahmedabad, Hyderabad, Goa and Chennai.
To attract foreign investment in real estate sector, RBI has easier the rules for NRI’s.
As per FEMA guidelines, NRI or PIO (person of Indian origin), can purchase any immovable property in India except agricultural land/plantation property/farm house.
PIO from countries like Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan are excluded and require special prior permission from RBI.
NRIs/ PIO can make payments by any given ways:-
Payment cannot be made either by foreign currency notes or traveller cheque’s .Payment cannot be made outside India.
Any property investment includes stamp duty, registration charges and service tax to be paid according to Indian laws.
NRIs/PIOs too can avail home loan facilities in Indian rupees like domestic investor for their property purchases, up to 80 per cent of the property value, depending upon individual eligibility.
Loan can be repaid in any given mode:
India has double taxation avoidance agreements with more than 90 countries. An NRI can claim tax credit on taxes paid by him in India on income from immovable property in his country of residence.
NRIs can earn returns from their investments in real estate, in 3 ways:-
Power of Attorney (PoA) is required by NRIs if he/she cannot be physically present in India for execution of property transactions. It empowers a person to act on behalf of another. Responsibility is delegated and, therefore, it helps NRIs manage their assets in India efficiently.
POA could be used for purposes mainly related to mortgage, lease, sell, collect rent and borrow, manage and sell disputes, perform acts required by banks and enter into contracts. The government is planning to amend the laws to make registration mandatory for such deals which will help curb frauds, disputes and stamp duty evasion.
An NRI investing in India needs to have a checklist of things which should include property verification, list of all documents, KYC, payment plan, tax implication legalities and other local formalities and someone trustworthy to help facilitate the entire process so that it is smooth and efficient.
The property tax varies depending on the type of property and the location. These are some of the important rules every NRI property investor in India should follow. Also, check with your Property Advisor for proceeding with the process easily.
So our expertise is to guide from scratch, so that our NRI clients don’t feel any difficulty at any stage of property investment even sitting so long distance from homeland.
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