Mayfair Group
Global Property – Local Reach
Mayfair Group has developed a unique and simple way for potential clients to capitalise on the Global Real Estate downturn.
We specialise in sourcing properties that are significantly below market value in the U.S. that can provide strong rental yields along with instant equity. Mayfair Group also offers its clients the opportunity to purchase off plan properties in India.
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. 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 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. 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. If I am not an NRI or PIO, can I purchase property?
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. 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.
For further information contact us on info@mayfair-group.com