Info On US “Investor Visas” When Buying Property

People of Indian origin (PIO) can soon be able to buy property in India without mandatory RBI approval and the hassles of producing visa documents. Foreign Exchange Management Act (FEMA) guidelines are amended to remove a gender bias. This will make buying of real estate by overseas Indians (NRIs) easier and realty firms in India can now expect more buyers.

The Indian diaspora living in Sri Lanka, China, Iran, Nepal, Bhutan and Afghanistan can buy real estate in India without any permission from the RBI. PIOs based in Pakistan and Bangladesh will have to seek RBI approval before buying or transferring property in India.

Apart from OCI and PIO card holders, registration of properties is not allowed to foreigners holding a visa other than business

Insight India Lists out details as under

1. Indian Citizen – Foreign Passport Holder - PIO Card– Property buying eligibility

If you are of an Indian Origin and holding an Indian Passport then you are entitled to buy any property. If you are an overseas passport holder like a US Passport or a British Passport Holder, then you need to have a PIO Card, or a Person of Indian Origin Card. This can be applied at the Indian Embassy or Consulate in your country where are you residing or you could enquire with them for further details. Even, if you have your fathers or mothers’ passport or birth certificate or any other proof of their being Indian Citizen, then it is ok.

 

2. Government Permissions

Person or Persons of Indian Origin need not require any approval by the Government of India to buy immovable properties.

 

3. Repatriation

If you are buying the property through your NRE accounts, then you could repatriate your Sale proceeds and Rental Income to your foreign account after deduction of Income Tax and Capital Gains on the Sale proceeds as applicable.

 

4. NRE / NRO Accounts

Please ensure that before you are coming to INDIA , you should have an NRE and NRO Bank Account set up in India. NRE accounts are used for pay outs. In your NRO accounts you can deposit and from there you could transfer the funds to your NRE for repatriation as required.

 

5. Buying Processes

If you are an NRI, you should ideally remit funds from your bank to the Indian bank where your NRE Account is set up to buy a property. If you buy the property through the NRE account, then the source of funds is not required to be disclosed usually to any one as this is your inwards remittance. Please remit at least USD 10000 to USD 25000- in your bank accounts to India prior to your leaving your country where you are based. This will act as placing the down payment of at least 10% with the Developer  / property owners,

 

6. Power of Attorney (POA)

If you are settled outside India and come once if a couple of years, then for all practical purposes, you should give a specific power of attorney to some one here in India , so that in your absence, things like registration, possession, execution of agreement for sale, agreement of leave and license etc, can be taken care of with ease.

 You could give a very specific POA to some one e.g. only for buying, or leasing, etc. you could fine tune the rights you would like to give out and clear that up.

 

7. Names in the Sale Deed

Please decide the names in which you need to have the property in.

 

8. Home Loan

If you are looking to buy your property with a home loan then it is even better, as you could save on a lot of down payment from your personal account. Usually, you could get a loan of around 85 to 90% of the property value. Your personal documents required for your home loan pre-approval only. Disbursement will happen only when you buy the property.