As a Non-resident Indian you are a big asset to the economy of the country. Your financial status can be a big boost to your home land’s economy if you are willing to invest here. But that’s not even half of the story, it gets better. Every year NRIs make great earnings by way of returns in the Indian market. The depreciation of the rupee goes a long way in increasing the value of your foreign currency, which means investing in India is much cheaper for you, and there is immense scope for huge profit margins. With umpteen investment possibilities ranging from stock markets to equity to bank accounts, real estate seems to be one of the best!
But what you must be wondering now is how to go about it?
Here are a few things you must know if you’re an NRI looking to invest in real estate:
Permissions: As an NRI you don’t need specific permissions for acquiring immovable property in India. The government has given general permission to NRIs for acquisition, sale and rent, and you shall not need any separate permissions from the RBI or any equivalent government organization.
Formalities: If you’re looking to purchase immovable property will need to file a declaration in form IPI 7 with the Central Office of the Reserve Bank of India at Mumbai. This declaration has to be filed within 90 days of the date of purchase or final payment of the said property. Along with this you shall have to produce a certified copy of the transaction as evidence of the payment, as well as the bank certificate that denotes the amount paid.
Loans: What if you don’t want to or can’t pay the entire amount from your pocket? As an NRI you can apply for and get yourself a home loan from an Indian bank. The RBI has granted general permissions to many banking organizations that deal with home loans to provide these to NRIs as well.
Payment Methods: You can make the payments for real estate purchases and sale either through inward remittances in foreign exchange, through general banking channels, or through funds from the NRE/FCNR accounts.
Gifting Property: When looking to dispose of property or acquire new one, it’s quite possible to do so by way of gifts. As per the general permission granted by the RBI in this respect to foreign nationals of Indian origin, you can gift your property to or acquire property from a relative up to the limit of two houses. It is to be noted though, that this relative can be both an Indian citizen or of Indian origin, whether resident in India or not. But, such a process of gifting property is only allowed if the gift tax is paid.
After having a look at the above mentioned factors for NRI investment, it becomes quite clear that the Indian government has left no stone unturned in their effort to make real estate investment easy for you. Encouraged by these many NRIs have been investing their money in real estate for years now. But, these terms are always subject to change, and for further clarification you should connect with the concerned authorities.