Can an NRI invest in real estate property in India?
NRI can buy a property in India under the Foreign Exchange Management Act ( FEMA). Under this act PIO ( people of Indian Origin ) also can buy property in India. He can buy any commercial or residential property without seeking specific permission from the central bank. He can be the sole owner of the property or own jointly with any other NRI.
Can a person still hold property in India if he becomes an NRI subsequently?
An NRI is allowed to hold the right to own any agricultural land, farmhouse, or plantation property. He can let out the property and can receive rent from such property. However, rent received from such property is taxable. In addition, he is allowed to sell property other than agricultural property, plantation property, or farmhouse, transfer or gift it to any resident in India.
Must -know things while buying a property in India
Taxation
While selling a property in India, tax is deducted from the sources. The rate is 20.6 percent for long-term capital gains, and for short-term capital gains, the rate is 30.9 percent. However, the final taxation rate for the property is the same for resident Indians and NRIs.An NRI can file for an income tax return if a lower tax slab is applicable.
Home loans
NRI can apply for home loans to buy a property in India. The loan is always sanctioned in Indian currency and must be repaid using the same currency. However, the loan amount is not directly disbursed to the bank account of the NRI, instead disbursed to the seller’s or the developer’s account.
Nature of the property
For agricultural land, farmhouse, or plantation property, NRI must seek the approval of RBI and the government.
Power of Attorney
An NRI has the right to give Power of Attorney of the property to a person residing in India, friends, or relatives to complete the property purchase in India.
Repatriation guidelines of funds
Sale proceeds can be repatriated back to the foreign country if the property is purchased in accordance with FEMA rules. The repatriated amount must not exceed the original amount paid for the property. If the property is acquired by gift, sale proceeds are directed to the NRO account then it will be repatriated. If the property is inherited, sale proceeds are directed after producing the inheritance document. Suppose the property is inherited from a person outside India. In that case, prior approval from RBI is required before the sale proceeds.
Documents required to buy a real estate property in India
Passport / or OCI Card
PAN Card
Power of Attorney
How Genuine Plots will help you to buy real estate property in India?
We offer an excellent opportunity for NRI investors who prefer non-agricultural plots in India to invest for gains and capital appreciation. We do the background check of the property and guide you to verify the documents related to purchasing non-agricultural land.
