Investing in real estate has demonstrated to be a safe investment in general especially when compared to bank deposits and mutual funds as they do not have enough returns due to decrease in interest/dividend rates. Money that is invested in the property market gives high on returns (ROI) as it assures one a good and a substantial rental income and certainly a greater resale value of the property asset.
Goa is one of the prominent tourism capitals that people dream of planning a trip and visiting this place. Goa is synonymous with fun and frolic experience as well as an experience filled with tranquility and serenity. It is remarkable that how people of all age groups admire Goa for its liveliness and reposefulness at the same time.
Goa is one of the ideal destinations for investment in the real estate sector. Whether as a home-stay or as an investment proposition, Goa offers numerous opportunities for real estate investment from which people can benefit in the long term.
Essen Group is a company having experience with expertise. We have grown tremendously over a period of time having an experience of more than 40 years. As a real estate business group, we have expanded and widened our visions for the company by getting the opportunity to undertake several landmark projects. With the expert knowledge and practical experience over these years, Essen Group stands to be a one-stop solution for all real estate needs and requirements. We do not just build houses, we create lifestyles.
A person of Indian origin means an individual who:
- held an Indian Passport at any time, or
- who or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955
Non-resident foreign citizens of Indian origin are treated on par with non- resident Indian citizens (NRIs).
The Overseas Citizenship of India(OCI) is an immigration status permitting a foreign citizen of Indian origin to live and work& in the Republic of India indefinitely.
Yes. NRIs can buy and sell residential and commercial properties in India.
There is no restriction on the number of residential or commercial properties an NRI can own in India. However the law restricts NRIs from purchasing any kind of agricultural land/ plantation property/ farm house in India.
Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. ARE THERE ANY FORMALITIES REQUIRED TO BE COMPLETED BY NRIS/PIOS FOR PURCHASING RESIDENTIAL IMMOVABLE PROPERTY IN INDIA UNDER THE GENERAL PERMISSION?
They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.
The following is the list (non-exhaustive) of documents required for NRIs to buy property in India:
- PAN card (Permanent account number)
- OCI / PIO card (In case of OCI / PIO)
- Passport (In case of NRI)
- Passport size photographs
- Address proof
An NRI/PIO cannot usually buy agricultural land/plantation property/farm houses in India. Proposals to buy such a land have to be specifically approved by RBI, in consultation with Government of India. The only way they can acquire an agricultural land is by inheritance.
Yes, the Reserve Bank has granted general permission to NRIs to acquire or dispose of NRI India Properties by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin (PIO) whether resident in India or not.
The Reserve Bank has granted some general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc, and authorized dealers to grant housing loans to NRI nationals for acquisition of a NRI house/flat for self-occupation subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts.
The documentation required to be submitted by the NRIs are different from the Resident Indians as they are required to submit additional documents, like copy of the passport and a copy of the works contract, etc. and of course NRIs have to follow certain eligibility criteria in order to get Home Loans in India.
Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the Home Finance Company would need a 'representative' 'in lieu of' the NRI to deal with and if needed. Although not obligatory, the POA is usually drawn on the NRI's parents/wife/children/ close relatives or friends.
The documents needed for obtaining NRI home loans are Bank specific. General list of documents are as mentioned below:
- Passport and Visa
- A copy of the appointment letter and contract from the company employing the applicant.
- The labour card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East Salary certificate (in English) specifying name, date of joining, designation and salary details.
- Bank Statements for the last six months
- List of Classified documents for Salaried and Self Employed NRI Applicants. Banks may have specific requirements apart from the below listed documents.
- Salaried NRI applicants
- Copy of valid passport showing VISA stamps
- Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder
- Overseas Bank A/C for the last 3 months showing salary credits
- Latest contract copy evidencing Salary / Salary Certificate / Wage Slips Self-Employed NRI Applicants
- Passport copy with valid visa stamp
- Brief profile of the applicant and business/ Trade license or equivalent document
- 6 months overseas bank account statement and NRE/ NRO account
- Computation of income, P&L account and B/Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts)
The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.
Yes. Long-term and short-term capital gains are taxable in the hands of non-residents.
In case of sale of an immovable property, the Double Tax Avoidance Agreement (DTAA) with most countries state that capital gains will be taxed in the country where the immovable property is situated. Hence, if an NRI owns immovable property in India, then he/she will be subject to pay tax in India on the capital gains which arise on the sale of the property. Similarly, letting of immovable property in India would be taxed in India under most tax treaties.