Investment - SPY REALTORS

A Guide for NRIs: Navigating the Indian Real Estate Landscap

Permissions: Unveiling the Possibilities

NRIs can purchase residential or commercial property in India without special permission from the Reserve Bank of India (RBI).
However, they are restricted from buying agricultural land, farmhouses, and plantation property unless they obtain prior approval from the RBI.

Ownership: Understanding the Rules

NRIs can own residential or commercial property in India as per the Foreign Exchange Management Act (FEMA) and RBI guidelines.
Joint ownership with an Indian citizen is possible, provided the Indian citizen meets the eligibility criteria.
Agricultural land, plantation property, and farmhouses are off-limits for NRIs.

Power of Attorney: A Key Facilitator

The Power of Attorney (POA) is crucial for property transactions in India, especially if the NRI buyer cannot be physically present.
Signatures on property documents should be verified by the registrar of the transaction location.
The appointed Power of Attorney should be certified by the Consulate of the NRI's residing country.

Payment: Currency Matters

NRIs can only buy property in India using Indian currency.
They must utilize non-resident accounts like NRO/NRE (Non-Resident Ordinary/Non-Resident External) or FCNR (Foreign Currency Non-Resident) accounts, as per FEMA regulations and RBI guidelines.

Loan: Financing Your Investment

NRIs have the option to apply for home loans to purchase real estate in India.
There's no restriction on the loan amount, and banks and NBFCs are generally open to lending to NRIs.
Interest rates may vary among lenders, and they can be slightly higher for NRIs.

Taxes and Charges: Financial Considerations

Rental income from property is subject to a 30% TDS (tax deducted at source).
Resale properties incur a 20% TDS for long-term capital gains, and short-term capital gains are taxed according to NRI income tax slab rates.
NRIs also bear stamp duty charges, registration fees, and GST, as applicable.

In Summary: A Window of Opportunity

The Indian real estate market is flourishing, offering NRIs a window of opportunity to invest.
Developers like Piramal Realty provide attractive options in cities like Mumbai.
Luxurious apartments and international standards of living await those looking to invest in Indian real estate.