Real Estate FAQ - For NRI
- No tax benefits are available for NRI's unless you file your returns and subsequently become eligible to avail the tax benefits as mentioned under Home Loan.
- A copy of the passport
- A copy of the works contract or the labour card
- The power of attorney (POA). (POA is required because the borrower is not based in India
- Qualifications - Graduate (minimum)
- Current job profile and work experience
- Chances of continuing abroad for the loan tenure
- Chances of servicing the loan with an extended tenure in case the applicant needs to return to India
- To purchase a house which is either ready to move in, under construction or bought from another owner, an NRI is eligible to apply for home loans. Additionally, NRIs can apply for home loans -
- For construction of a property on a plot of land by self
- To purchase a plot allotted by a society/development authority
- For the purpose of renovation or improvement of an existing property in India
- In case of residential properties, the repatriation of sale proceeds is restricted to not more than two such properties, if the property was purchased from funds held in an NRE Account.
- Additionally, the amount repatriated out of India should not exceed the amount paid for acquisition of the immovable property in the foreign exchange received through normal banking channels or from the funds held in FCNR or NRE Account.
With specific approval from the RBI, a resident outside India may hold an immovable property in India acquired through inheritance from a person resident outside India, provided the owner had acquired such property in accordance with the regulations of the foreign exchange law in force at the time of acquisition or should be under FEMA guidelines.
- Yes. Under the general RBI guidelines, NRI/PIO may acquire residential/commercial property by way of gift from a person resident in India or an NRI or a PIO.
- No, an NRI or a PIO cannot buy a property in India jointly with a foreign citizen.
- No. A person resident outside India cannot acquire by way of purchase agricultural land/plantation property/farm house in India.
No. There is no limit placed on the number of residential properties an NRI can buy in India.
As per India's Foreign Exchange Management Act (FEMA) 1999, an NRI or Non Resident Indian is a citizen of India or a foreign national of Indian origin living
outside India for the purpose of employment, business or any other vocation, which would indicate his intention to stay outside India for an indefinite period of time. An Indian would also be termed as an NRI if his stay in India is less than 182 days.