- Affordability Advantage: Pune has consistently emerged as a cost-effective alternative to Mumbai. Its real estate market has displayed steady growth, earning the city a reputation as one of India’s most liveable urban centers. The appeal for NRIs lies in Pune’s affordable property prices, coupled with cost-effectiveness and attractive returns. NRI investors also benefit from favorable exchange rates, enhancing the profitability of their investments.
- Enchanting Climate: Pune boasts a serene and tranquil climate. Efficient transportation networks seamlessly link various parts of the city, contributing to its charm. Anticipated developments in emerging areas hold promising prospects, creating a conducive environment for investment in both residential and commercial properties.
- Thriving IT and Investment Hub: Pune is a cultural cornerstone of Maharashtra, renowned for its vibrant IT industry hosting over 400 software companies. This thriving IT ecosystem attracts tech professionals from across India. Despite challenges posed by the pandemic, Pune’s real estate market has witnessed a surge in sales over the past years, cementing its status as a favored destination for NRIs seeking lucrative investment opportunities.
- Promising Future Trajectory: Pune’s prominence in higher education institutions underscores its potential for investors eyeing student housing or rental properties. The proliferation of tech parks and business centers in Pune and its outskirts has captured the attention of reputable developers. With an extensive pipeline of over 1,300 ongoing projects, Pune emerges as an enticing prospect for patient investors. The ongoing metro and infrastructure undertakings further accentuate Pune’s allure for potential investors.
- Compelling Returns: Pune’s real estate has outpaced the market values of many Indian metropolises. This trend can be attributed to the city’s dynamic growth, spurred by the expansion of manufacturing and technology sectors, resulting in an increased population. As infrastructure continues to evolve, property investment in Pune holds the promise of delivering impressive returns. Notably, locales such as Hadapsar, Hinjewadi, and Pimpri-Chinchwad, due to their proximity to IT parks and commercial hubs, exhibit strong appreciation potential, rendering them attractive investment zones with favorable ROI projections.
An Indian citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organisations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian origin are treated on par with non- resident Indian citizens (NRIs).
- held an Indian Passport at any time, or
- who or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955
The Overseas Citizenship of India(OCI) is an immigration status permitting a foreign citizen of Indian origin to live and work& in the Republic of India indefinitely.
There is no restriction on the number of residential or commercial properties an NRI can own in India. However the law restricts NRIs from purchasing any kind of agricultural land/ plantation property/ farm house in India.
Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser’s NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.
They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.
The following is the list (non-exhaustive) of documents required for NRIs to buy property in India:
- PAN card (Permanent account number)
- OCI / PIO card (In case of OCI / PIO)
- Passport (In case of NRI)
- Passport size photographs
- Address proof
An NRI/PIO cannot usually buy agricultural land/plantation property/farm houses in India. Proposals to buy such a land have to be specifically approved by RBI, in consultation with Government of India. The only way they can acquire an agricultural land is by inheritance.
Yes, the Reserve Bank has granted general permission to NRIs to acquire or dispose of NRI India Properties by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin (PIO) whether resident in India or not.
The documentation required to be submitted by the NRIs are different from the Resident Indians as they are required to submit additional documents, like copy of the passport and a copy of the works contract, etc. and of course NRIs have to follow certain eligibility criteria in order to get Home Loans in India.Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the Home Finance Company would need a ‘representative’ ‘in lieu of’ the NRI to deal with and if needed. Although not obligatory, the POA is usually drawn on the NRI’s parents/wife/children/ close relatives or friends. The documents needed for obtaining NRI home loans are Bank specific. General list of documents are as mentioned below:
- Passport and Visa
- A copy of the appointment letter and contract from the company employing the applicant.
- The labour card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East Salary certificate (in English) specifying name, date of joining, designation and salary details.
- Bank Statements for the last six months
- Copy of valid passport showing VISA stamps
- Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder
- Overseas Bank A/C for the last 3 months showing salary credits
- Latest contract copy evidencing Salary / Salary Certificate / Wage Slips
- Passport copy with valid visa stamp
- Brief profile of the applicant and business/ Trade license or equivalent document
- 6 months overseas bank account statement and NRE/ NRO account
- Computation of income, P&L account and B/Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts)
The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.
Yes. Long-term and short-term capital gains are taxable in the hands of non-residents.
In case of sale of an immovable property, the Double Tax Avoidance Agreement (DTAA) with most countries state that capital gains will be taxed in the country where the immovable property is situated. Hence, if an NRI owns immovable property in India, then he/she will be subject to pay tax in India on the capital gains which arise on the sale of the property. Similarly, letting of immovable property in India would be taxed in India under most tax treaties.