{"id":2058,"date":"2021-06-29T12:51:27","date_gmt":"2021-06-29T12:51:27","guid":{"rendered":"https:\/\/www.propertypistol.com\/blog\/?p=2058"},"modified":"2021-06-29T12:51:31","modified_gmt":"2021-06-29T12:51:31","slug":"is-indian-real-estate-profitable-for-an-nri","status":"publish","type":"post","link":"https:\/\/www.propertypistol.com\/blog\/is-indian-real-estate-profitable-for-an-nri\/","title":{"rendered":"Is Indian Real Estate Profitable For an NRI?"},"content":{"rendered":"\n

Investments from Non-Resident Indian (NRI) <\/a>are a common aspect of our economy. The trend has also extended to the real estate sector, where NRIs invest to gain profits. However, the growth has slumped due to the COVID-19 pandemic<\/a> faced by nations across the globe. Amidst the pandemic, the sector may have shown zero to low rate growth, but NRIs have always remained a sweet spot.<\/em><\/p>\n\n\n\n\n\n\n\n

You may wonder if investing in real estate in India today is equally profitable for NRIs; the answer is YES. The demand for real estate has only increased, which is also supported by the recent implementation of RERA<\/a>.<\/p>\n\n\n\n

Real Estate in India where NRIs can invest<\/strong><\/p>\n\n\n\n

As per the current Indian laws, NRIs can invest in both residential and commercial properties depending upon their purpose of purchase. However, there are exceptions for NRIs to purchase property in India. Agricultural land, farmhouse, or any plantation property can only be owned by an NRI if it is inherited or gifted by a family member.<\/p>\n\n\n\n

FEMA rules for NRIs<\/strong><\/p>\n\n\n\n

Foreign Exchange Management Act (FEMA) defines rules for all investments carried out by an NRI in India. Real estate investments and transactions also fall under the FEMA act that has one simple rule – An NRI or Person of Indian Origin (PIO) can acquire immovable property in India if he\/she is a citizen of a country other than Nepal, Bhutan, China, Pakistan, Sri Lanka, Bangladesh, Iran, and Afghanistan.<\/p>\n\n\n\n

NRIs of these countries must take prior permission from the RBI itself if they want to invest in India. As for NRIs of countries other than these, real estate exceptions in the type of property are mentioned above, and everything else remains the same.<\/p>\n\n\n\n

How are NRIs taxed in India?<\/strong><\/p>\n\n\n\n

Real estate attracts one of the highest investments from NRIs due to the easy availability of loans and other funds required to make the purchase. Since most of the investment is made for profit-gaining purposes, the income earned here is also taxable under Indian IT laws for NRIs.\u00a0<\/p>\n\n\n\n

Here\u2019s how NRIs are taxed in India:<\/p>\n\n\n\n