If you are looking to invest in property in India, you came to the right place!
As an investor, you will have the opportunity to explore options in Residential & Commercial Properties by Prestige Estates Projects Ltd. – South India's largest and most sought after property developer. We can help you find the perfect property to cater to your specific needs in terms of location, type of development and budget.
Below are answers to some frequently asked questions (FAQs) to assist you in your search:
Who is an Non-resident Indian (NRI):
A Non Resident Indian (NRI) is an individual who is an Indian Citizen but has migrated to another country permanently or temporarily for the purpose of employment, education etc. Other terms commonly used for an NRI are Overseas Indian, Expatriate or Indian Expatriate.
Who is a Person of Indian Origin (PIO)?
A person of Indian origin (PIO) is a person of Indian origin or ancestry but who is not a citizen of India and is the citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country, or have ancestors born in India or other states.
Are Non Resident Indians (NRIs) and Foreign Citizen of Indian origin (PIOs) allowed to acquire or dispose immovable property in India?
Yes, the Reserve Bank of India has granted permission to all NRIs and PIOs to dispose of immovable property in India, both Residential or Commercial Property. However, the RBI has placed restrictions on the purchase of Agricultural Land/Plantation Property or Farmhouses in India.
What are the requirements for NRIs and PIOs who want to purchase Agricultural Land/Plantation property or Farmhouses in India?
The NRI or PIO would need to send a formal request to The Chief General Manager, Reserve Bank of India, Central Office Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.
How can an NRI or PIO purchase a property in India?
An NRI or PIO can purchase a property either through an inward remittance in foreign exchange through normal banking channels or through the funds available in the NRE/NRO/FCNR accounts maintained in India by the investor.
Do you require the permission of the RBI to transfer immovable property in India?
No, NRIs and PIOs do not require the permission of the RBI in order to transfer immovable property to any Indian Citizen, NRI or PIO.
Can the properties (Residential/Commercial) be given on rent if not required for immediate use?
Yes, the RBI does not place any restrictions on an NRI or PIO in terms of renting out properties they acquired. The rental amount can be repatriated back to the country they are residing in, without any restriction.
Can sale proceeds of immovable property be remitted out of India?
Yes, the sale proceeds can be remitted out of India to the home country of the NRI or PIO, up to the maximum limit of the consideration amount originally remitted from abroad to purchase the property. However, the property would have to have been sold after a period of three years, from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.
Additionally, the following points also need to be adhered to in this respect:
The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Laws in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999;
The amount to be repatriated does not exceed:
The amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account(s) or the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account(s) for acquisition of the property; and in case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
Finally, application for the purpose of repatriation is required to be made to the Central Office of Reserve Bank within 90 days of the sales of property in Form IPI 8.
Can an NRI give a Power of Attorney (POA) to a person in India for completion of loan formalities on their behalf?
Yes, an NRI can appoint a Power of Attorney (POA) to complete all loan formalities for the purchase of a property since the NRI might not be in India for long periods of time. In fact, the appointment of a POA may be advantageous given the stringent formalities Indian banks follow.
What are the conditions if the Power of Attorney (POA) is being executed outside India?
It is advisable that the POA is a Resident of India; however, a POA can be executed outside of India per the following conditions:
The execution of the power of attorney must be done on a stamp paper or plain paper, as the case may be in the country where the power of attorney is being executed.
The signatures of the executants have to be attested by an official of the Indian Embassy, Indian Consulate or Trade Commissioner, in the country where the executants reside.
The signature of the attorney should be verified in India by a Notary, his employer or his banker on a separate piece of paper which should be submitted to SHFL together with the Power of Attorney.
Is there a limit to the number of investments an NRI can make in acquiring Residential/Commercial Properties in India?
No, the Reserve Bank of India has not placed any restrictions on the number of purchases an NRI or PIO can make of Residential/ Commercial properties However, the they have placed restrictions on the purchase of Agricultural Land/Plantation Property or Farmhouses in India.
What services does Prestige provide the NRI Investor?
We at Prestige have setup a team of qualified individuals trained in Foreign Investment policies as they related to Property. We have set up a 24-hour hotline number where our friendly representatives would be happy to help you with any query.
The team is also updated on each property development at Prestige, so they can assist NRI customers with regard to project statuses, payment schedules, loan assistance, etc.
Does Prestige arrange site visits for NRI customers who are visiting India and wish to see their property?
Yes, Prestige can arrange site visits for NRI customers who are visiting India.
Prestige has also developed an eVisit platform that allows customers to drive to their Prestige Property, right from their browser. Upon clicking the eVisit link, the customer is virtually driven to the Prestige Property. So, even if they are sitting in another part of the world, a customer can still see and experience all the development around their Prestige Property, helping them make an informed decision. The eVisit link can be found on every project page or can be accessed from the footer menu of the site.
In addition, Prestige regularly updates the Development Photographs section within each property, which allows customers worldwide to track the development progress of their Prestige property.
Does Prestige help in the renting or leasing of Prestige properties for NRIs?
Yes, because at Prestige, we believe in long-term relationships with our customers, and therefore we we have a dedicated team of professionals to help assist all Prestige property owners in renting or leasing their property. Fill out the Rent your Property form found to the left in the menu (within this NRI Section) and get started with the process immediately!
Is it possible for NRIs/PIOs to acquire or dispose off Residential/Commercial Property by way of gift?
Yes, the RBI has not placed any restrictions on the ability of NRIs or PIOs to acquire or dispose residential/commercial property, by way of gifts to other Indian citizens, NRIs or PIOs, unless the immovable property is an Agricultural Land/ Plantation Property or Farmhouse.
Can NRIs purchase a house or flat for residential purpose through the help of Financial Institutions in India?
Yes, the RBI has granted permission to financial institutions to provide loans to NRIs for the acquisition of homes/flats for own occupation, subject to banking terms and conditions. Note that loan repayment must be completed within a 15 year period, through inward remittances or out of the funds held by the investors in their respective NRE/NRO or FCNR Accounts.
Can an NRI purchase a Prestige Property by means of borrowing money from a close relative outside India?
Yes, an NRI can purchase a Prestige Property by means of borrowing money from a close relative outside India. However, the sum borrowed cannot exceed US$250,000 or its equivalent, subject to the following conditions:
- The minimum maturity period of the loan is one year;
- The loan is free of interest; and
- The amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debit to the NRE/FCNR account of the NRI.
According to the RBI guidelines a Close relative' means relative, as defined in Section 6 of the Companies Act, 1956 which is as under:
- A person shall be deemed to be a relative of another if, and only if:
- They are members of a Hindu undivided family; or
- They are husband and wife; or
- The one is related to the other in the manner indicated in Schedule IA.
How much loan can an NRI or PIO get?
An NRI or PIO can get a Home Loan of up to 85% of the Total Consideration Value of the property.
Are there any Tax implications for NRIs on the purchase, sale and renting of Prestige Properties?
There aren’t any tax implications for NRIs; however, any income earned from rental of a residential property would be taxable under House Property, in the Income Tax Act of 1961. Income earned out of rental of a commercial property would be taxable under Business Income in the Income Tax Act of 1961. Income earned from the sale of a property is taxable under Capital Gains of the Income Tax Act of 1961.