NRIs and Real Estate in India
With the developmental booms anticipated in India, going forward, the land value and land returns make the Indian land a lucrative investment opportunity for Non-Residents in India. Investments go beyond numbers and for an NRI, an asset in the motherland for good value is a promising choice to invest into.
Aakruthi's Dedicated NRI Support Services
- Virtual Property Showcase
Experience a detailed virtual tour of the property from wherever you are via video call.
- Local Site Visits
Have your friends or family members visit the site for trusted feedback.
- Property Selection Guidance
Tell us your budget and needs, our experts will guide you towards the best option for you.
- Legal Queries and Clearances
Leave no space for concerns. Get assistance with legal queries and ensure all clearances are in place.
- Bank Loan Support
Our service doesn’t end at the property. We help you secure the best loan options with our bank support services.
- Documentation Coordination
It’s truly a hassle-free process for you since we handle all necessary documentation and paperwork.
- Registration with Power of Attorney
No in-person registration needed. Facilitate property registration through Power of Attorney
- Post-Registration Documentation
Even post-registration, you have our support with formalities and property maintenance documentation.
As an NRI, you may want to keep the following in mind before you invest –
As an NRI, you are issued general permissions from the RBI to purchase any number of lands that can be used for both residential or commercial purposes in India. To purchase farmhouses, agricultural lands, or/and plantation lands however, would require prior permission from the RBI.
When an NRI is not present in person to purchase the
property,
the Power of Attorney as appointed by the buyer, a family member, and verified by
the
Consulate of the host country or the country where the NRI resides in, plays a key
role
in
the registration process. The Registration Act requires both the buyer and the
seller of
the
property to sign the documents and the same is required to be validated by the
registrar
of
the location where the transaction takes place.
Under the Foreign Exchange Management Act (FEMA) and as
per
RBI guidelines, an NRI is eligible to purchase either residential or commercial
property
in India and can further finance the necessary home loan in Indian rupees. An NRI
can
partake in a joint ownership with an Indian citizen.
NRIs can avail home loans to purchase real estate in
India.
Most banks and NBFCs (Non-Banking Financial Companies) offer loans without a budget
restriction. However, interest rates may be higher although the specifics are found
to
vary from lender to lender..
Since the payment for purchases on real estate in India
have
to be made in the rupee and cannot be paid via using the host country currencies; a
non-resident account, such as an NRO/NRE account (Non-Resident Ordinary or
Non-Resident
External Account) or an FCNR account (Foreign Currency Non-Resident Account) as per
the
Foreign Exchange Management Act (FEMA) under the regulations of the RBI can be used
to
make the payments required.
Properties in India irrespective of how they may be used
as
they generate income, are taxed. Rental income is charged with 30% TDS (Tax deducted
at
source) and when resold, TDS of 20% for long-term capital gains is charged while the
short-term capital gains tax is applied as per the NRI income tax slab rates.
Needless
to say, stamp duty fees, registration charges, and GST needs to be paid.
