Tushar Desai asked on 21/03/2020

How can an NRI invest in real estate in India?

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SBNRI Team
answered on 21/03/2020

NRI Investment in Real Estate in India

NRI investment in Real Estate in India can be understood by interpreting the fundamentals of Where to Invest and How to Invest. NRIs can easily invest in real estate in India, read along to know how..

NRI Investment in Real Estate in India

Where to Invest: NRIs can buy both residential and commercial properties in India. However, they can not buy any Agricultural Land, Farm House or Plantation property. They can only be inherited or received as gifts.

 

How to Invest: NRIs can buy the “allowed” real estate properties through the following mediums:

  • Self-Transactions by NRIs using:
    • Funds in their NRE/NRO/FCNR (B) accounts in India
    • Funds remitted to India from overseas (in own account; can’t pay to the seller directly)
  • Loan Facility (in INR) in India for NRIs; up to 80% of the property value based on individual eligibility of the NRI than can be repaid through:
    • Inward Remittance (money transferred into your own account from abroad)
    • Funds in their NRE/NRO/FCNR (Bank) accounts in India
    • Rent from the purchased property
    • Close Relatives crediting the borrower’s loan account (under section 6 of the Companies Act, 1956)

Note: No payments can be made by traveller’s cheque (pre-paid, pre-printed fixed amount cheques for payments across countries) or in foreign currency notes. All payments must be made in India only in case of NRI Investments in Real Estate in India.

 

 

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