NRI Property Investment is one of the most misunderstood topics. The reason for which can be attributed to it being perceived as a complex segment of real estate investment. The financial pre-requites of home buyers is the case of NRI’s is different, and all the queries related to it are answered in this post.
Here will be taking into consideration not only NRI but also OCI (Overseas Citizenship of India) and PIO (People of Indian Origin) property investment queries.
So, let’s get started –
Q1. Is it mandatory for NRI’s to obtain prior permission from RBI (Reserve Bank of India) before acquiring any property (residential or commercial) in India?
Ans. Well, the answer here is NO, there is no need to obtain prior permission from RBI.
Q2. In it mandatory for PIO to get prior approval from RBI (Reserve Bank of India) before acquiring any immovable property for residential use?
Ans. There is NO need to get prior approval, as long as the property is acquired for residential purposes.
Q3. Can PIO acquire commercial property in India?
Ans. Yes, PIO can purchase commercial properties other than plantation/agricultural/farmhouse property.
Q4. Can the property acquired by NRIs/PIO be sold?
Ans. Yes, RBI has granted permission to sell such acquired properties. However, it should be remembered that if the property is sold to a foreign citizen of Indian origin, then funds paid should be paid out of NRE/FCNR accounts or remitted back to India.
Q5. Are foreign citizen of Indian Origin allowed to acquire residential property by way of gift?
Ans. Yes, they can acquire such assets by way of gift, but the number of such gifts is restricted to two, from an Indian citizens or PIO, subject to compliance with Indian tax laws.
Q6. Are foreign citizen of Indian Origin allowed to sell a residential property, by the way, gift?
Ans. Yes, they can sell such properties, by the way, gift, but the number of such gifts is restricted to two, subject to compliance with Indian tax laws.
Q7. Are NRI’s permitted to acquire housing loans from financial institutions or dealers?
Ans. The government of India has granted permission to certain authorised dealers and financial instruction to give credit to NRIs for the acquisition of home/flat. Repayment of such loans shall not exceed a time frame of 15 years.
Q8. Can NRI’s and PIO rent residential/ commercial properties?
Ans. Yes, Reserve Bank of India has granted permission to NRI & PIO to rent their property. The income so generated should be deposited in NER/NRO accounts.
Remember, the topic of NRI investment is significant and lengthy. Our future blogs will give enlighten you the topic further. Also, don’t forget to go through relevant guidelines for NRI property inverters.
