Can a green card holder buy property in India? Do you have the same question? Then the answer is ‘yes’. A green card holder can invest in an Indian property as per the Foreign Exchange and Management Act (FEMA) provisions.
An NRI can purchase any residential or commercial property in India except agricultural land, a plantation property, or a farmhouse.
In recent years Indian real estate has turned out to be a lucrative area for investment. As it is not volatile like the share market, more and more eyes are diverting toward real estate. Additionally, Indian real estate has experienced a sudden boom due to the Covid-19 pandemic of 2020. People are trying to invest in houses in their homeland to stay closer to their near and dear ones. This has led to a demand for ready-to-move-in homes.
What properties can be purchased by green cardholders?
A green card holder can buy any type of residential or commercial property in India. Other properties like agricultural land, plantation property, or farmhouse do not come under this scope.
Important documents for purchasing the property-
The main documents required for purchasing any residential or commercial property in case you are a green card holder are generally – address proof, your passport, passport size photograph and PAN card (if you’ve any inheritance).
The process of document verification can be performed personally. You can also appoint a credible person for property registration. You will have to provide them with the Power of Attorney. This gives them the power to sign on your behalf.
Must-know pointers to follow before buying Indian property-
Even a green card holder can avail of home loans for purchasing property in India.
Your trustworthy individual who has the Power of Attorney will need to present a copy of their PoA to the concerned authorities.
A green card holder is required to pay the taxes, registration fee, post-purchase taxes, and GST (for an under-constructed house) just like any other Indian.
Investment in Indian property can also be used for earning rental income. You can rent out ready-to-move-in houses. The rent earned will be repatriated to your account as per the FEMA rules.