With over 20.20 million of NRIs (Non-resident Indian) and PIOs (Person Of Indian Origin) across the globe, the overseas investment into Indian real estate has never been an issue. Majority of these people have invested in the homeland in consideration to their individual future plans.
Factors for consideration for NRIs while buying property in India
- Which property can a NRI or PIO buy?
- How to pay for these properties?
- Repatriation of the capital gains?
- Availability of home loan
- Can a NRI sell or transfer a property?
Which property can a NRI or PIO buy?
An NRI or Person of Indian Origin (PIO) can own both residential as well as commercial properties in India and there is no restriction on the number of properties you can buy. However, you cannot purchase any agricultural land, farm house and plantation property. You can have ownership of such property only if they have been gifted or inherited.
How to pay for these properties
The money for purchase of property can be made either by way of funds remitted to India from abroad through regular banking channels or through the balance in the Non Resident External (NRE), Non Resident Ordinary (NRO) or Foreign Currency Non Resident (FCNR) Account.
Repatriation of the capital gains
NRI and PIO have been allowed to repatriate original investment in equivalent foreign exchange in residential/ commercial properties. However, the gains from such transactions have to be re-invested in the real estate market in India.
Availability of home loan
Loan to an NRI is available the same way they would be to an eligible resident, for reference below mentioned criterion is must for availing home loan
- Minimum age of 18 years.
- Valid Indian passport (for NRIs) / valid foreign passport (for People of Indian Origin – PIOs).
- Steady source of income.
- Employed abroad for at least 2 years.
- Valid job contract or work permit.
Can NRIs sell or transfer property
An NRI can sell property in India to a person resident in India or to an NRI. A PIO can sell property in India to a person resident in India or to an NRI or a PIO but after having a prior approval from the Reserve Bank of India.
Good tips for NRI. This information will be useful for those who are willing to buy properties in India(Indian).
ReplyDeleteReal Estate Consultancy in Patna.
NRI can buy both Residential as well as Commercial Properties.
ReplyDeleteNRI has almost equivalent number of rights as normal Indian who resides in India.
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