Investing in India Real Estate

N RI Information Informing educating and connecting Indians across the globe . . . Investing in Indian Real Estate A person’s status plays a role when it comes to purchasing property in India. The terms NRI, PIO are commonly used and perhaps thought of to have the same meaning. However they are not the same. Here is in brief an explanation: NRI is an Indian citizen residing outside India. NRI’s even though living abroad, always hold an Indian passport. PIO is a person of Indian origin is someone who has links to Indian origin. They or their parents, grandparents may have been Indian citizens. Hence they are said to be of Indian origin. PIO’s hold foreign passports. There is an exception to this rule, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan is not regarded as a PIO. Generally in simple terms, if you are holding an Indian passport and living out of India, then you are considered to be an NRI. If on the other hand you are a foreign citizen with links to Indian origin from family, then you are a PIO. Investing in Indian Real Estate Persons of India Origin (PIO) despite being foreign citizens can buy and sell properties in India without prior approval of the Reserve Bank of India. When it comes to supply and demand controlling prices, the supply of housing in India has a long way to go to meet demands. Property purchase in India is definitely something to look at. The cost of housing appears to be shooting up in India steadily. Take a look at the cost of hotel accommodation in India today. A charge of Rupees five thousand a day does not even get you three star hotel accommodation in most cities. If you are an Nri who often visits India for pleasure or business, then purchasing a flat in India may be something worth looking into. Agricultural Land – Farm House – Plantation Property in India Foreign citizens of Indian origin (PIO) can acquire agricultural land, farm house or plantation property in India without the approval of the Reserve Bank of India ONLY by way of inheritance. Foreign citizens of non-Indian origin however, cannot acquire agricultural property without prior approval of the Reserve Bank of India. Some highlights for property related matters of interest to NRI’s: • NRI’s can acquire any immovable property in India except agricultural land, plantations or farm houses. • Payment must be made from funds remitted from abroad by proper banking channels or from legally held NRI accounts in India to which money has been deposit from foreign earnings. • NRI’s may sell any immovable property they own in India. • NRI’s who already own agricultural land, plantation or farm house may dispose these by way of gift or sale to a resident person who is a citizen of India. • Rental income can be remitted outside India after any applicable taxes have been paid.