5 Tips for NRIs While Investing in Property in India


The sentiments of having a place to call your own back in your homeland is no more just a feeling of nostalgia but also an added sense of security. With the rupee going up and down, the time seems just right for Non-Resident Indians (NRIs) or Person of Indian Origin (PIO) to invest in property in India. Rules and regulations are being made simpler to attract more investments that filters any prior permission from authorities. Foreign Exchange Management Act (FEMA).

The Need-to-knows

What kind of property can you invest in? You are free to own either residential or commercial property in India from the builders in Bangalore. But you cannot purchase any agricultural land, farm house or plantation property. You can receive such either in inheritance or gift.

Transaction Currency – Whether you buy a property from the best builder in Bangalore or property developers in Chennai, all your transactions are billed in Indian Rupees (INR). All your transactions will be accounted via normal banking channels through an NRI account.

Sources of Finance – Loan lending has been made simpler for NRIs when looking to invest with good builders in Bangalore. The RBI has predetermined home loan norms where 80% amount can be financed by any financial institution while the rest is borne by the NRI.

Points to check – At the time of purchase, ensure that you get the Property Name is issued clearly, there are no outstanding bills, No Dues Certificate is issued from the seller, Bank Release Letters are acquired in case of any property mortgage and all Permits/ Approvals from Civic Authorities in terms of construction are delivered to you at the time of property sale.

Tax applicability- You will be required to spend on stamp duty and registration fees at the time of property purchase. You can avail all benefits at par with Indian Residents on the interest paid. Standard deduction from income is applicable as per the standard slab. If the country he/ she resides in has a Double Tax Avoidance Agreement with India, then the tax is exempted.

The Reserve Bank of India (RBI) along with FEMA are also providing the benefits of repatriation of the capital involved in investing in ongoing apartment projects in Chennai.

Apart for the above-mentioned important points there could be still plenty more things to consider so kindly check with a reliable resource and find the best options for you before you invest in India.


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