Mayfair Group
Global Investments – Local Reach
Mayfair Group has developed a unique and simple way for investors to capitalise on the Global Real Estate downturn.
We Specialise in hands free investments that can provide investors Gross Yields of up to 25% per Annum. Our Investment properties offer up to 50% equity from day one thus giving our investors strong return on investment.
For further information please Contact
Us.
NRI / PIO FAQ'S
Q. Who is a Non-Resident Indian (NRI)?
A. A Non-Resident Indian is an Indian citizen who stays abroad for business, or employment, or under circumstances when the duration of staying abroad is uncertain.
Non-resident foreign citizens of Indian origin are treated in parity with Non-Resident Indians (NRIs).
Q. Who is a Person of Indian Origin (PIO)?
A. A Person of Indian Origin is a citizen of any other country whose intimates (or, ancestors) have been Indian nationals of not less than four generations away.
Q. Is permission from the Reserve Bank required for NRIs when acquiring residential and/or commercial property?
A. Currently, all Indian citizens are entitled to buy property in India, irrespective of their residential status.
Q. Are foreign PIOs required to obtain permission from the Reserve Bank when purchasing property in India for residential use?
A. The Reserve Bank has granted general permission to PIOs regardless of where they are residents, i.e. India or overseas, to purchase property in India for residential or investment purposes.
Q. How do I get classed as a PIO?
A. There are two methods of classing PIOs:
a) if the person has held an Indian passport at anytime
b) if the person or the father or the paternal grand father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.
This does not apply to citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal.
Q. Under general permission, how property purchases should be paid for by NRIs or PIOs?
A. The payment should be made either out of the normal banking channels i.e. foreign exchange or out of funds from NRE (Non-Residential External) or NRO (Non-Resident Ordinary) accounts operated with banks in India.
Q. Can a NRI or PIO hold any commercial property in India acquired by way of inheritance from a person resident in India?
A. Yes. A person resident outside India can hold commercial property acquired by way of inheritance from a person resident in India.
Q. What formalities are required by PIOs to purchase residential property in India under the general permission?
A. PIOs are required to file a declaration with the Central Office of Reserve Bank within a period of 90 days from the date of purchase or final payment. Along with this certified documentary evidence for the transaction and bank certificates for the payment are required.
Q. How should purchase considerations for the immovable residential property be met by foreign citizens of Indian origin under the general permission?
A. The purchase considerations for the immovable residential property should be met either via inward remittances in foreign exchange from normal banking channels or via funds from NRE/NRO accounts maintained with Indian banks.
Q. How many investments can be made for acquiring commercial properties in India?
A. There is no limit to NRI investments into commercial properties in the Indian real estate market.
Q. Can property be sold without the permission of The Reserve Bank?
A. Property can be sold without the permission of The Reserve Bank as they have granted permission. However, where the property is purchased by another PIO, the payment must be made via the normal banking channels i.e. foreign exchange or out of NRE/NRO accounts.
Q. Can sale proceeds of property be repatriated?
A. For residential properties purchased on or after 26 May 1993, The Reserve Bank considers applications for repatriation of sale proceeds. Approval is usually granted for up to the consideration amount remitted in foreign exchange in acquiring the property for a maximum of two properties. The balance amount of sale proceeds, if any, or sale proceeds for properties purchased prior to 26 May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.
Q. Is there a time frame linked to repatriation of sale proceeds and what is the procedure?
A. An application for repatriation is only considered if the sale takes place after a period of three years of the date of final purchase deed or from the date of the final instalment payment of the total balance, whichever is later. All applications for permission of repatriation must be made to The Reserve Bank within 90 days of the sale of the property.
Q. Can property be acquired or disposed of as way of gift by PIOs?
A. The Reserve Bank has granted general permission to PIOs to acquire or dispose of up to two properties as a gift from or to a relative who may be an Indian citizens, resident or not, or a PIO, provided the gift tax has been paid. Properties can also be transferred to charitable trusts or organisations providing all other laws, as applicable are complied with. PIOs are unable to acquire agricultural land / plantation property / farm house in India.
Q. Are PIOs able to acquire commercial properties in India?
A. Properties other than agricultural land/farm house/plantation property can be acquired by PIOs provided the payment is made via the normal banking channels i.e. foreign exchange or out of NRE/FCNR accounts. A declaration must be submitted to The Reserve Bank within a period of 90 days of the purchase date of the property or final payment of the total balance.
Q. Can PIOs dispose of commercial properties?
A. Yes.
Q. Can sale proceeds of commercial properties be remitted out of India?
A. Yes. Repatriation of original investment in respect of properties purchased by PIOs on or after 26 May 1993 can be remitted up to the amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of the payment of the final instalment, which ever is later. Applications for the purpose are required to be made within 90 days of the sale of property.
Q. In case of NRIs residing abroad, can property be bought via an agent or via the Power of Attorney?
A. Yes, if an NRI stays abroad, he may enter into an agreement through his relatives or through executing the Power of Attorney on stamped paper in their favour in the adopted country, as it would not be possible for them to be personally present for completing all the sale-purchase transactions.
Q. Can properties be used to generate rental income if immediate use is not required?
A. General permission has been granted by the Reserve Bank for letting out any immovable property in India and the rental income is eligible for repatriation.
Q. Can NRIs obtain loans inside of India for the acquisition of a house or flat for residential purpose from a financial institution providing mortgage facilities?
A. General permission has been granted to certain financial institutions providing housing finance e.g. HDFC. Authorised dealers have also been granted the ability to offer mortgage loans to NRIs for the acquisition of property for self-occupation, subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period 15 years via the normal banking channels i.e. foreign exchange or out of NRE/FCNR accounts.
Q. Are Indian companies able to grant loans to NRI staff?
A. The Reserve Bank has granted permission for Indian firms to grant mortgage loans to their employees working abroad who hold an Indian passport under certain conditions.
Q. Can a PIO or an NRI be granted a mortgage loan from an authorised dealer where the PIO or the NRI is the principal borrower or joint owner with a relative as the co-obligator / guarantor?
A. An authorised dealer is able to grant a mortgage loan, however in such cases the payment of the remaining balance and any loan repayments should be made by the NRI borrower.
Q. If I am not an NRI or PIO, can I invest?
A. Unfortunately a foreign citizen of non-Indian origin resident outside of India cannot purchase any property.
Q. If I am not an NRI or PIO, can I jointly purchase a property?
A. Unfortunately a property cannot be purchased jointly in the name of an NRI or PIO with a foreign citizen of non-Indian origin even as a second name.
Q. If I am not an NRI or PIO what possibility is there of purchasing property?
A. Property is purchasable if a person has been residing in India for more than one hundred and eighty-two days during the course of the preceding financial year (April-March) and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period.
A person has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the preceding financial year) but has to also comply with the condition of the purpose/intention of stay. This option is unavailable to citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan. In case of doubt whether a person is to be considered as a resident or otherwise, he has to prove his residential status as per law.
Q. Can property be leased in India by foreign citizens of Non-Indian origin?
A. Foreign citizens of Non-Indian origin and citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan can acquire residential non-commercial property on lease not exceeding five years without any RBI permission.
Q. If I am a foreign citizen of non-Indian origin can I receive a property as a gift?
A. Foreign nationals of non-Indian origin cannot acquire an immovable property as a gift.
Q. Am I able to receive property through inheritance?
A. An NRI, PIO or a foreign national of non-Indian origin can receive non commercial property through inheritance from a person resident in India or person outside India (the latter subject to RBI permission). For e.g. If an Indian resident in India dies and the legal inheritor or person named to receive the property is abroad, the property can be owned by the inheritor which was left by the deceased even if such the inheritor is not eligible to buy such property.
Q. What payment options do you have that are applicable from the UK?
A. You will be able to make payments in instalments at each stage of the development for the property direct to the developer. We will support you and make sure that you are given the best level of customer service at each stage.
Q. Do you provide legal advice on the purchase of property in India?
A. Legal advice is available on all property purchases. You will be guided step by step right from the initial deposit to the final payment and keep regular contact with you to advise you of the progress.
For further information contact us on info@mayfair-group.com