Are you an NRI? Perhaps you have a brilliant idea or business plan for a product you want to introduce in your native place in India. Did you know NRIs are exempted from taxes of up to 1 Lakh INR when investing in India? Whatever be your reason for commercially renting, knowing the four crucial tweaks from experts will guide you to profits and away from losses. Explore the REAL Tips for NRIs Investing in Commercial Real Estate in India!
NRIs Investing in Commercial Real Estate in India Must Know These Tips
A person of Indian Origin or PIO is also a Non-Resident Indian. According to the Regulatory Act, you don’t need anything but a passport to begin investing in properties across India. To know the nuances of NRI investments from experts, keep reading!
1. How to Pay for Property as NRI
The Government of India has made it mandatory for Non-Resident Indians to transact and invest in properties via national banks. You can also apply for loans if your papers are clear. As an NRI, you can pay for the property purchases in three ways.
NRE
Non-Resident External Rupee Account or NRE is not a complex account. Simply put, it is your savings account with domestic earnings. NRE accounts are often created in the very first days of NRI status.
NRO
You can also invest in real estate as an NRI through your Non-Resident Ordinary Rupee account. The taxable account, NRO has restricted repatriation too. The Government of India will levy taxes from the interests in your NRO account.
FCNR
Foreign Currency Non-Resident Account or FCNR is an FD or fixed deposit account for NRIs. FCNR is often used by Non-Resident Indians for investment through foreign currencies.
2. Power of Attorney of NRI properties
You can choose whether to hold a Single or Joint power of attorney when investing in Indian real estate. To own a business and office space, you need a clear power of attorney.
As your old properties remain in your name, you don’t have to account for properties before you were an NRI. Ensure that the power of attorney is cross-checked by a legal counsel in case you’re investing in under-construction properties.
3. Exempted Property for NRI
The one and only exemption for NRIs are agricultural lands. Unless you are the heir to agricultural lands, Non-Resident Indians cannot buy agricultural and farming lands. However, NRIs are allowed to buy residential and commercial properties
4. Investment Options for NRIs
As a Non-Resident Indian, there are multifarious fields to invest in. From Mutual funds to Banks, Domestic property, Proprietary partnerships, Government Bonds, Portfolio investments, and Direct investments, RBI has devised many options for NRIs to invest in India as part of Make In India.
The Real Estate Expert Says …
If you’re a Non-Resident Indian, don’t worry about investment. The Government of India has been open to foreign investments in the recent past. To ensure cost-efficient and profitable business ventures, consult the expert views.
