Real estate has become one great way to multiply asset worth in a short time span. As a result of this, property investment in foreign lands has also become quite popular among high-net-worth individuals in India. That begs many questions. What does the law say about property purchases by an Indian outside the country? Are Indians free to buy property abroad? If so, what are its tax implications in India and abroad? We try to find answers to these questions?
Can an Indian buy a property outside the county?
Under the existing guidelines, an Indian is free to buy immovable property in India.
Property purchase from another Indian resident
A resident Indian can acquire property outside India by way of inheritance or gift or purchase from another Indian resident who has acquired the property following the foreign exchange provisions.
Property purchase from a non-resident
A resident Indian can also acquire immovable property outside India from a non-Indian resident by way of inheritance or by way of purchase out of foreign exchange held in an RFC (resident foreign currency) account.
In this scenario, they can also buy such a property using remittances sent under the Liberalised Remittance Scheme (LRS) by the Reserve Bank of India. Under the scheme, an Indian resident can transfer up to $250,000 in a financial year outside India.
Property purchase jointly with family members
Indians can also invest in property outside jointly with a relative living abroad.
Property purchase using sale proceeds of another property
Indians can also use the income or sale proceeds of an asset to buy property in a foreign land. However, the freedom does not apply on income generated from overseas direct investment (ODI) accounts.
Can Indian companies buy property outside India?
Existing norms also allow Indian companies with overseas offices to buy immovable property outside India for the business and residential purposes of its staff.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected] |
Housing News Desk is the news desk of leading online real estate portal, Housing.com. Housing News Desk focuses on a variety of topics such as real estate laws, taxes, current news, property trends, home loans, rentals, décor, green homes, home improvement, etc. The main objective of the news desk, is to cover the real estate sector from the perspective of providing information that is useful to the end-user.
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