Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Indians Buying Property Abroad
Aggregated and Prepared by: www.nirrtigo.com
Green Realtech Projects Pvt. Ltd
Real Estate P...
Indians Buying Property Abroad
Aggregated and Prepared by: www.nirrtigo.com
Green Realtech Projects Pvt. Ltd
Real Estate P...
Indians Buying Property Abroad
Aggregated and Prepared by: www.nirrtigo.com
Green Realtech Projects Pvt. Ltd
Real Estate P...
Indians Buying Property Abroad
Aggregated and Prepared by: www.nirrtigo.com
Green Realtech Projects Pvt. Ltd
Real Estate P...
Indians Buying Property Abroad
Aggregated and Prepared by: www.nirrtigo.com
Green Realtech Projects Pvt. Ltd
Real Estate P...
Indians Buying Property Abroad
Aggregated and Prepared by: www.nirrtigo.com
Green Realtech Projects Pvt. Ltd
Real Estate P...
Upcoming SlideShare
Loading in …5
×

Indians buying property abroad

4,705 views

Published on

This document presents the tips and necessary RBI guidelines for Indians who are looking to buy property in foreign countries such as USA, UK, Dubai, Singapore, Malaysia, Australia, etc.

  • Stop getting scammed by online, programs that don't even work! ★★★ http://ishbv.com/ezpayjobs/pdf
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • CHENNAI GST ROAD - ON ROAD PROPERTY - WITHSTOOD THE ONSLAUGHT. FOR SALE - MAIN ROAD PROPERTY - IN CHENNAI, TAMIL NADU - ENTRY FROM NH-45. Prime Vacant Land 5.8 Grounds (13940 sq.ft.) in Singaperumal Koil, Chennai, India on Main GST Road with direct entry from GST Road. Mahindra World City is 1.2 Kms. on one side and Ford Motor Co. is 3.2 Kms. on the other side. Plot with direct entrance from Wide National Highway NH-45. Frontage Width is 46 feet, Rear Width is 56 feet and length is 286 feet. Companies like BMW, Nissan-Renault, Daimler, Enfield, Nokia, Siemens, Hyundai, Ford are in close proximity to this place. The Property has a Security Room with 3-Phase Power Supply and has a Compound Wall of about 11 feet on all sides with a 15 feet gate in the front. Since the Land is located amidst various International Companies, it will be ideally suited for Offices, IT/ITES/BPO Companies, Residential Apartments, etc. Very Ideally suited for Investment Purposes, Immediate Construction of Residential Apartments, Show Rooms, Departmental Stores, Hospitals, Logistics, etc. Appreciation Guaranteed on Investment. In case of interest, please contact:- Mr. K.Aravamudan, Mob:- 0 – 94440 12056. e.mail : hiraytech@yahoo.co.in VERY IMPORTANT NOTE:- The above Site is not affected by the heavy Rains and Thunder Storms that lashed Chennai just recently.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Indians buying property abroad

  1. 1. Indians Buying Property Abroad Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page The Foreign Exchange Management Act (FEMA), 1999 specifies that a person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. Further, in order to liberalize the foreign exchange facilities available to resident individuals, RBI has started a Liberalized Remittance Scheme that allows a resident Indian to remit up to US$ 125,000 in one financial year for any permitted capital and current account transactions, including acquisition of immovable property, shares, debt instruments or any other assets outside India as permitted under the scheme. Liberalized Remittance Scheme (LRE) The Liberalized Remittance Scheme (LRE) permits all resident Indians, including minors, to make remittance for an amount not exceeding USD 125,000 per financial year for any Current or Capital Account transaction or a combination of both. Remittance under this scheme is on a gross basis. LRE Guidelines 1. Under the Scheme, resident individuals can acquire and hold immovable property or shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank of India. Individuals can also open, maintain and hold foreign currency accounts with Banks outside India. 2. The investor can retain and reinvest the income earned on investments made under the Scheme. Currently, the residents are not required to repatriate the funds or income generated out of investments made under the Scheme. 3. Remittances under the facility can be consolidated in respect of family members subject to the individual family members complying with the terms and conditions of the Scheme. 4. The facility under the Scheme is in addition to those already available for private travel, business travel, studies, medical treatment, etc as described in Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000. The Scheme can be also be used for these purposes. 5. Gift and donation remittances cannot be made separately and have to be made under the Scheme only. Accordingly, resident individuals can remit gifts and donations up to USD 100,000 per financial year under the Scheme. Any money transferred to another country is taxable except money transferred as gift on the occasion of marriage of an individual, irrespective of any limit (but within reasonable amounts) as specified by the taxation laws.
  2. 2. Indians Buying Property Abroad Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page 6. Remittances under the Scheme can be used for purchasing objects of art subject to the provisions of other applicable laws such as the extant Foreign Trade Policy of the Government of India. 7. The Scheme can also be used for remittance of funds for acquisition of ESOPs. The remittance under the Scheme is in addition to acquisition of ESOPs linked to ADR/GDR 8. The remittance under the Scheme is in addition to acquisition of qualification shares. (i.e USD 20,000/- as 1% of paid up capital of overseas company whichever is lower). 9. A resident individual can invest in units of Mutual Funds, Venture Funds, unrated debt securities, promissory notes, etc under this Scheme. Further, the resident can invest in such securities out of the Bank account opened abroad under the Scheme. 10. An individual, who has availed of a loan abroad while a non-resident can repay the same on return to India, under this Scheme as a resident 11. It is mandatory for resident individuals to have PAN number for sending outward remittances under the Scheme. 12. In case a resident individual requests for an outward remittance by way of issuance of a demand draft (either in his own name or in the name of the beneficiary with whom he intends putting through the permissible transactions) at the time of his private visit abroad, such an outward remittance can be effected against self declaration of the remitter in the format prescribed under the Scheme. List of transactions NOT permitted under the scheme 1. Remittance from India for margins or margin calls to overseas exchanges/ overseas counterparty. 2. Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery/sweep stakes, tickets proscribed magazines etc) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000. 3. Remittances made directly or indirectly to Bhutan, Nepal, Mauritius or Pakistan. 4. Remittances made directly or indirectly to countries identified by the Financial Action Task Force (FATF) as "non co-operative countries and territories" from time to time. 5. Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank of India to the Banks.
  3. 3. Indians Buying Property Abroad Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page Property purchase procedures, rules and regulations vary across nations, more so for the non- residents/foreigners. For example, in Australia, the types of property foreigners can purchase are restricted. Similarly, in the US, non-US citizens can purchase property, depending on their immigration status. In all the cases, credit history along with the employment and citizenship details of an individual; acquiring property abroad will be checked. One should also be aware of the property acquisition process as well as the local regulations before investing in real estate abroad. There are multiple modes of financing property acquisition abroad. Some of these include: 1. Own sources: The buyer may fund the purchase from funds in India under the Reserve Bank of India's Liberalized Remittance scheme. 2. Overseas mortgage with an international mortgage provider: A feasible option is to claim mortgage from a bank in the chosen destination. The foreign banks with branches all over the world offer several overseas mortgage plans based on the value of the property to encourage foreign investors to buy property abroad. Typically, the loan amount offered is 75-80% of the property value and the tenure for overseas loans ranges from 5 to 30 years. The rate of interest offered may be fixed or variable, and varies across countries and lenders. For example, rate of interest is relatively higher in European countries. 3. Local financing from a developer: Many developers offer their own in-house financing. For example, in Dubai this is prevalent. Certain Countries are quite liberal and their Embassies / High Commissions easily provide requisite information for availing housing loans. Although mortgages are available on all types of properties, the lending may vary for each property type. For example, in some countries like Turkey, mortgage is available only on completion of the project/property, while in some cases, the amount is lent subsequently as the project develops. So, if individuals need to avail housing finance abroad, then they should be familiar with the loan procedures and guidelines applicable in the country
  4. 4. Indians Buying Property Abroad Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page Tips for Buying Property Abroad Here are a few practical tips to help you buy property in another country: 1. Know the purpose of buying: It is important to realize the purpose of buying a property abroad. If you are buying a property for gaining visa or citizenship, then you need to think twice because every country follows different regulations regarding property ownership. For example, in Hong Kong, owning a property by a foreigner helps in securing visa, but in New Zealand, the UK, and Australia, possessing an immovable property confers no advantage towards a residency permit. However, if you work abroad or have children studying abroad or are a frequent visitor to a destination abroad, then buying property abroad is surely a viable option. 2. Do you homework: Before you initiate the buying process, ensure that you find out all about the country you are considering for property purchase, including climate, cost, connectivity, economy, etc. Also, make a visit to the country and get in touch with a local estate agent to understand the dynamics of the property market in the area and to educate oneself on available properties and locations. 3. Know the tax liability: Another aspect that one needs to consider is the tax liability associated with owning a real estate, including taxes payable while purchasing, holding, renting, and selling property – both in the country where you are investing and also in India. Check the inheritance and capital gains tax laws of the country where you are buying immovable property. Tax implications vary across countries and according to the type of property bought; so ensure you are aware of these to avoid any surprises later. Identifying the need to avoid double taxation, that is, paying taxes in India as well as in their country of residence, the Government of India has entered into Double Taxation Avoidance Agreement (DTAA) with 65 countries including the U.S.A., the U.K., Japan, France and Germany. In case of countries with which India has Double Taxation Avoidance Agreements, the tax rates, are determined by such agreements. 4. Verify the credentials of your real estate agent: Ensure that the real estate from whom you are buying property is well reputed and registered under the respective laws of the concerned state. The agent should be proficient in your chosen country's laws and processes and know the specifics involved in buying a property there. Ask your property agent for all the necessary documents including building regulations and planning permissions. 5. Verify the title to the property: Engage a qualified lawyer to inspect and confirm the validity of the title deed and related documents, and ensure there are no encumbrances on the property.
  5. 5. Indians Buying Property Abroad Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page 6. Contract: Never sign a contract that you do not understand, especially if it is in a foreign language. Get the contract translated into native language and understand the nuances with the help of a qualified lawyer. The legal expert can also guide you about the property laws prevalent in the country. If two versions of a contract are provided, i.e., English and local language, ask your solicitor to confirm that the English version is a true translation. The contract involved in buying a property should be tripartite agreement including Indian buyer, foreign seller/real Estate Company, and Indian representative, which should be a registered company under Indian laws (and not an individual). Many foreign real estate companies have opened up franchises in India that act as Indian representative in a property deal abroad. As these representatives are more aware of the property market in their respective countries, they can guide the Indian buyers accordingly, and in case of legal disputes, they can be held accountable. 7. Get the money matters right: Arrange for sufficient funds to include property value as well as maintenance costs including travel, repair, and renovation costs. If you are arranging finance on the property, ensure that this is stated in any contract and, where possible, seek an 'opt-out' clause if the loan is not disbursed (which will ensure any deposit paid is refunded). When claiming mortgage, cover all hidden costs, as it would be difficult to claim more when initial paperwork has been completed by the Bank. Also, remember that your mortgage will probably be in local currency, and you must consider the impact of fluctuations in exchange rates. 8. Open a local account: Open a Bank account in your chosen country and, where relevant, ensure you obtain a Certificate of Importation for the money you bring in from your home country. Set up standing orders in your local Bank account to meet local bills and taxes. 9. Study Property Price Indices: A careful study of property price indices of a country or area where you wish to acquire property is also recommended. This will ensure your awareness and clarification of trends for commercial as well as residential property. Source: National Housing Bank
  6. 6. Indians Buying Property Abroad Aggregated and Prepared by: www.nirrtigo.com Green Realtech Projects Pvt. Ltd Real Estate Projects India | User Ratings & Reviews | Common Cause | Discussions | Research Page About NirrtiGo NirrtiGo is owned and founded by Green Realtech Projects Pvt. Ltd. NirrtiGo is an online real estate platform to find, discuss, review, rate, and track real estate & property in India.

×