An NRI buying property in India is a common feature whether the market is hot or not, primarily because NRIs like to have a place back here in India. The RBI’s regulations on it are fairly easy as well and you do not have to take any prior permission from the authorities and currency rates are favorable too.
Let us run through a couple of pointers for the NRIs to understand the process, documentation involved and tax implications if they wish to invest in India.
NRI investment cannot be done in agricultural land, farmhouse, and plantation property (they cannot purchase) unless they’ve been gifted or inherited. To acquire agricultural land/plantation property/farm house in India, NRIs must get approval from the RBI and the government.
Loan/ Funding the Purchase:
NRIs may avail of loan facilities from lenders; however, there are some things to be kept in mind.
1) Indian Passport of Person of India Origin (PIO) Card or Overseas Citizen of India (OCI) Card
NRIs need an Indian passport to buy property in India. If they hold the passport of a foreign country, they need a PIO card. A person who is not a citizen of India, but was eligible to become an Indian citizen before or after partition (or a child of such a person) would need an overseas citizen of India (OCI) card.
2) PAN Card
NRIs need a PAN (permanent account number) card for two reasons:
3) Power Of Attorney
If you are an NRI who does not visit India too often, you must give POA to someone in the city in which you are buying a property to execute transactions on your behalf.
Let us look at some of the best places to invest in India that would give you maximum returns on your investments, the developments are fairly safe and you have a wide range of property options to choose from.
Though is known to be the most expensive real estate market in Asia, there are a number of affordable options available in the upcoming suburbs of the city.
With a large number of migrant employees who work in the automobile and information technology companies in the city, there are a large number of luxury, premium & affordable residential projects in Pune. The growth of Pune has scaled at such a level that this city has attracted both NRIs and other people from around the globe. NRI investment in Pune has various unsaid and unknown benefits as the city is booming with companies wanting to invest or wanting to set up their offices.
IT hub Bengaluru has a good mix of affordable homes as well as premium projects. A large number of new areas are being developed in the city outskirts.
This emerging area in the national capital region (NCR) has gained traction among NRIs.
All these cities have an International airport or are easily accessible for the nearest airport; they have many reputed developers and the range of properties is wide enough to pick and choose; good returns on investment. So if you’re an NRI looking forward to buying property in India, here is your ready reckoner.