Are you from a foreign nation and thinking of buying land in India? Or are you looking to invest in Indian real estate? The Indian real estate market is booming right now, attracting buyers from around the world. But can foreigners buy property in India? The answer is yes, but there are a few restrictions.
India is the land of many opportunities and has been a destination for investors and foreigners who want to invest in properties here.
Land Buying is Different in India
There are some restrictions on buying land in India. Some specific restrictions are linked to the residency status. Foreign nations generally cannot buy agricultural land, plantations, property, and farmhouses in India. However, they can purchase residential and commercial properties.
But why so many restrictions? Because the government of India aims to protect agricultural resources and ensure that they are available for farming.
Can Foreigners Buy Residential or Commercial Properties in India?
Yes, foreigners can buy property in India. However, they must meet certain criteria that are governed by FEMA. which include:
Stay:
Foreign nations must reside in India for more than 182 days during the financial year.
Purpose of stay:
Their stay should not be for the purpose of tourism; it should be related to employment, business, and the long term.
Documentation:
The needed documents are valid passports, visas, and all other proofs related to identity.
Countries:
Additional restrictions are applied to some countries like Bhutan, Nepal, Iran, China, etc.
Mode of Payment:
For foreign nationals, payment is made in foreign currency only through normal banking channels.
Number of Properties:
There are no restrictions for foreigners to buy properties in India.
Taxes:
All the taxes are the same as per the Indian law, like stamp duty charges, registration charges, etc.
Steps for buying property in India for foreigners:
Selecting Property:
Selecting the desired property anywhere in India. There are a few factors that need to be acknowledged while choosing the property, like location, legal formalities, amenities, prices, etc. Also, the legalities, owners, papers, and other details.
Rules of FEMA:
Go through the FEMA regulations governing property transactions involving foreign nations.
Required documents:
Besides the property-related papers, other required documents like title deeds, land records, sales deeds, tax receipts, etc., should be verified. And all the necessary documents, like visas, passports, and proof of address.
Registering the property:
Like Indians, foreigners must register their property. Which also includes stamp duty and registration charges.
Payment Rules:
All payments should be transferred from the non-resident account via banking channels.
Appointing a Legal Advisor:
Expert advice is essential as the law changes from state to state. The advisor also helps you to verify all the necessary documents.
Considerations for the Foreign Nationals:
Foreigners also need to understand the market trends, legalities, and financial options and are also obliged to tax-related obligations under income tax in India.
Additionally, while foreigners can buy property in India, they cannot transfer the funds freely.
Conclusion:
Can foreigners buy property in India? Well, yes, foreigners who want to acquire land anywhere in India can buy property, but with some restrictions and regulations.
Ensure and understand the need to invest wisely and have a successful investment.
Get in touch with Team Flivv today and have a hassle-free and seamless experience in property investments and avail the best deals.
