NRI CORNER
1. Can NRIs (Non-Resident Indians) and foreign nationals invest in real estate in India?
Yes, NRIs and OCIs (Overseas Citizens of India) are allowed to invest in most types of real estate in India, including residential and commercial properties. However, agricultural land, farmhouses, and plantations have certain restrictions for foreign nationals.
2. What documents are required for NRIs to invest in Indian property?
NRIs typically need a valid passport, PAN (Permanent Account Number), an address proof, and OCI/PIO card (if applicable). Additional documents, like a power of attorney, may be needed for transactions conducted in the investor’s absence.
3. How can NRIs fund real estate purchases in India?
NRIs can fund real estate investments through inward remittances, NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts. Indian banks also offer home loans to NRIs, with certain eligibility requirements.
4. Are there any tax implications for NRIs investing in Indian real estate?
Yes, NRIs are subject to tax regulations in India on rental income, capital gains, and other property-related income. However, there are exemptions and deductions available, and India has Double Taxation Avoidance Agreements (DTAA) with several countries.
5. How can NRIs manage property in India from abroad?
NRIs can appoint a trusted power of attorney (POA) to handle property matters in India. Alternatively, some property management companies provide end-to-end services, including maintenance, tenant management, and sale or purchase of properties.
6. Is repatriation of funds possible on sale of property in India?
Yes, NRIs can repatriate the sale proceeds of property, subject to certain conditions. Typically, only two properties can be repatriated, and the funds should come from designated NRE/NRO/FCNR accounts.
7. What is the role of Power of Attorney in property transactions for NRIs?
A POA allows NRIs to authorize a trusted person to manage their property-related matters in India, such as signing documents, making payments, and overseeing transactions, especially when the NRI cannot be present in India.