In recent years, it has been shown that non-resident Indians (NRI) are very interested in buying property in India. The value of rupee in the world market is one of the main reasons why NRI invest in the real estate market in India. Not only that, a part of them wants to have a home here in India because of the emotional connection they have with the country to which they belong.
Procedure for NRI and Foreigner to buy a property in India are as follows:
Non-Resident India (NRI)
When buying a property in India, the NRIs must comply with the rules established by the Constitution of India under the FEMA Act (Foreign Exchange Management Act). According to FEMA, an NRI can own residential and commercial properties in India, and they can own many properties as they want. However, the rules restrict NRI to purchase agricultural land, farms, and plantations in India. An NRI can possess such properties, only if it is endowed or inherited.
An NRI has to provide a Power of Attorney (PoA) from the developer that favors them, in case of buying an under-construction property. This makes the documentation work faster and easier. It can be granted to implement any contract, mortgage, lease, or even sale. Under FEMA rules, an NRI can sell residential, commercial property, agricultural properties, plantations or inherited agricultural lands to resident Indian to buy it.
In addition to the FEMA rules, there are some specific RBI guidelines on the repatriation of the sale that must be followed when selling a property in India. According to the set of rules, if someone wants to repatriate, they must come in foreign currency from a bank account abroad, an NRE (Non-Resident Rupee) account. Also, it cannot exceed the amount of money that is paid through banking channels while buying the property and an NRI cannot repatriate for more than two properties.
The foreign nationals residing outside India are not eligible to buy a property in India. The foreign citizen who is residing in India can buy a property in India without a need for approval from RBI, but they have to check once if they require any permission before acquiring a house in India. Citizens from Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan who are resident in India can only purchase immovable property in India with the special permission of the RBI and Government of India.
According to the FEMA Act, the foreigners should follow the two conditions to be considered as a resident of India and buy India property. The foreigner must reside in India for more than five months (182 days) during the financial year. They can stay in India continually for 182 days as an employer or doing business or enjoy the vacation or any for any other purpose to prove their intention to reside in India.
However, a property is an excellent tax-saving tool for both resident Indians and non-residents to get high rents and returns. An NRI can also have tax savings by investing in the Indian real estate market. Do you like to buy a home in Hyderabad? www.propertyadviser.in, India's first-ever real estate property directory guide you with 100% verified information of all apartments, villas, independent houses and plots for sale in Hyderabad. Its smart filters tool helps you to buy a home as per your requirements such as property location, budget range, type, size, etc. Visit our real estate directory portal now to find your dream home quickly.
By: Shailaja K