Non residing Indians make up for a significant contribution for the Indian foreign exchanges market. The diaspora finds its roots in India and continues to be closely connected to family in India. Therefore it makes complete sense to invest in real-estate assets— making it either a family home or a holiday home. While they are away, they have the option to seek tenants who can use their properties and take care of it in their absence. NRIs, therefore find investing in real estate to be a rewarding experience.
It’s good to note that the overall impact is that Indian real estate market is seeing green shoots of revival in 2018. To help you traverse this peek in the market, below are some key points an NRI needs to keep in mind while making a real estate investment in India.
Power of Attorney (PoA)
Power of Attorney is required by NRIs if they cannot be physically present in India for execution of property transactions. Responsibility is delegated and, therefore, it helps NRIs manage their assets in India efficiently. POA could be used for purposes mainly related to mortgage, lease, sell, collect rent and borrow, manage and sell disputes, perform acts required by banks and enter into contracts.
India has double taxation avoidance agreements with more than 90 countries. An NRI can claim tax credit on taxes paid by him in India on income from immovable property in his country of residence.
Right way to make a transaction
Investing in real estate in India is no longer as challenging as it used to be. In fact, by using realty like Build to Bricks, you can easily keep track of the regulatory changes in India in an efficient and transparent way.
Type of property to invest
NRIs can purchase any number of properties, both residential and commercial. But they are not allowed to buy any form of agricultural land, farm house and plantation property unless it has been gifted or inherited by them.
Regulations to consider
Real estate transactions in India for NRIs fall under the purview of Foreign Exchange Management Act (FEMA). Reserve Bank of India has simplified the rules as NRIs holding an Indian passport needs no approval while investing in Indian real estate.
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