Investments made by NRIs in the Indian real estate market have significantly gone up since the stabilization of the economy post withdrawal of INR 500 and 1000 rupee notes last year. Most NRIs investing in India belong to Middle East countries along with many hailing from the USA, UK, Singapore, Australia, Canada and South Africa. An interesting thing to note is that most NRIs are opting for investing in properties being developed in the Smart Cities. residential property in Karnal, are proving to be more capital friendly than investing in traditional metropolitan city properties.
To top it all, the new government policies have made it simpler for non-residential Indians to put in money in the Indian real estate sector and reap benefits. Let’s have a closer look at these changes.
Citizenship – According to a new rule passed by the government of India, if an NRI holds an Indian passport, he/she is not liable to get prior approvals for making investments in the Indian real estate. Under the general permission category, individuals of Indian Origin need no permissions unless they hold the citizenship of neighboring countries including Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Nepal, Bhutan, and Iran.
Property Types – A broad range of properties have been added to the list of assets in which NRIs could invest in. For instance, NRIs can not only buy residential plots in Karnal but also make an investment in a number of commercial projects as well. At the same time, the government has restricted the sale or lease of any form of agricultural land, farm houses and plantation properties, unless they're being gifted by an Indian or, are inherited by them.
Payment Mechanism – While making an investment in an Indian real estate property NRIs have the leverage of making payments online via net banking through Non-Residential Rupee (NRE) accounts, Non-Residential Ordinary Rupee (NRO) accounts, foreign currency non-residential deposit accounts or by extending cash payments in INR. Cheques and foreign currency dealings are, however, not appreciated.
Inheritance Rules – In accordance with the rules governing the inheritance of property, it is clear than, for instance, an NRI has been gifted or inherited new residential plots in Karnal, the RBI reserves no rights to restrict the leasing or renting of this property unless an NRI has already acquired it.
Eligibility for Loans – Just like any other citizen of India, even NRIs need to apply for loans. Banks in India extend a loan against approx. 80% of the value of the property. The rest of the money must be arranged by the NRIs themselves in order to purchase the property. Additionally, NRIs need to pay back the loan in Indian rupees only.
Payment of Taxes – Last but not the least, when it comes to payment of taxes against the purchase of property in India by NRIs, they are liable to pay the stamp duty along with registration charges and service tax in Indian Rupees. Property tax varies from one property type to another and even on the location. Additionally, there are three slabs set for the payment of stamp duty in the country. This is – 4% of property’s value if a woman purchases it, 5% if it's bought in joint ownership and 6% if in case the buyer is a male. Furthermore, 1% of the registration fee applies to all property transactions.
To conclude, whether its villas for sale in Karnal or an upcoming five-star luxurious residential property in Tier II or Tier III city, Indian real estate market is one of the most sought after destinations for NRIs to make investments and reap benefits.
To top it all, the new government policies have made it simpler for non-residential Indians to put in money in the Indian real estate sector and reap benefits. Let’s have a closer look at these changes.
Citizenship – According to a new rule passed by the government of India, if an NRI holds an Indian passport, he/she is not liable to get prior approvals for making investments in the Indian real estate. Under the general permission category, individuals of Indian Origin need no permissions unless they hold the citizenship of neighboring countries including Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Nepal, Bhutan, and Iran.
Property Types – A broad range of properties have been added to the list of assets in which NRIs could invest in. For instance, NRIs can not only buy residential plots in Karnal but also make an investment in a number of commercial projects as well. At the same time, the government has restricted the sale or lease of any form of agricultural land, farm houses and plantation properties, unless they're being gifted by an Indian or, are inherited by them.
Payment Mechanism – While making an investment in an Indian real estate property NRIs have the leverage of making payments online via net banking through Non-Residential Rupee (NRE) accounts, Non-Residential Ordinary Rupee (NRO) accounts, foreign currency non-residential deposit accounts or by extending cash payments in INR. Cheques and foreign currency dealings are, however, not appreciated.
Inheritance Rules – In accordance with the rules governing the inheritance of property, it is clear than, for instance, an NRI has been gifted or inherited new residential plots in Karnal, the RBI reserves no rights to restrict the leasing or renting of this property unless an NRI has already acquired it.
Eligibility for Loans – Just like any other citizen of India, even NRIs need to apply for loans. Banks in India extend a loan against approx. 80% of the value of the property. The rest of the money must be arranged by the NRIs themselves in order to purchase the property. Additionally, NRIs need to pay back the loan in Indian rupees only.
Payment of Taxes – Last but not the least, when it comes to payment of taxes against the purchase of property in India by NRIs, they are liable to pay the stamp duty along with registration charges and service tax in Indian Rupees. Property tax varies from one property type to another and even on the location. Additionally, there are three slabs set for the payment of stamp duty in the country. This is – 4% of property’s value if a woman purchases it, 5% if it's bought in joint ownership and 6% if in case the buyer is a male. Furthermore, 1% of the registration fee applies to all property transactions.
To conclude, whether its villas for sale in Karnal or an upcoming five-star luxurious residential property in Tier II or Tier III city, Indian real estate market is one of the most sought after destinations for NRIs to make investments and reap benefits.
Many of them are settle in foreign countries for earning foreign currency. Such people become NRI over the period of time. Learn How India is Benef Many of them are settle in foreign countries for earning foreign currency. Such people become NRI over the period of time. Learn How India is Beneficial for NRI Investments?click here for more inficial for NRI Investments?click here for more inf
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