Owning Property in Navi Mumbai: Foreign Property Ownership Explained

Over the last few years, the demand for property in Navi Mumbai has increased manifolds, especially amongst foreign nationals. This is majorly because of the ever-growing economy of the city. Other factors such as cultural diversity and high investment returns further make India a realty hotspot that attracts many international investments.

So, if you are planning on investing in property and finding the answer to the question - can foreigners buy property in Navi Mumbai, we have got you covered.

Also, there are quite a few factors that you need to know.

Today, we are going to talk about the legal aspects, document requirements, and government regulations that are involved in owning property by foreigners.

Government Regulations

Although foreigners who have no ties to India are not permitted to purchase property or land in India, non-resident Indians and OCI Cardholders can buy property in India.

This process is overlooked by the Foreign Exchange Management Act (FEMA), which has authorised The Reserve Bank of India (RBI) to set rules and manage the buying or selling of property in India by people living outside the country.

Types of Properties Available for Foreign Buyers in India

The answer to the question - can foreigners buy property in Navi Mumbai is not as straightforward as it may seem. This is because each property has specific regulations. Let us discuss:

Residential Properties

Foreign individuals, such as non-resident Indians (NRIs) and persons of Indian origin (PIOs), can buy residential properties like apartments, villas, townhouses, and residential plots in India.

Commercial Properties

Foreign entities, both companies and individuals, can invest in commercial properties in India. The guidelines for purchasing commercial properties vary based on the sector and investment nature. In some cases, approval from the RBI or other regulatory bodies might be necessary, depending on the investment's scale and nature.

Agricultural Land

Generally, foreigners, including NRIs and PIOs, cannot directly acquire agricultural land in India. However, there are exceptions for PIOs who have inherited or received agricultural land as a gift. In such situations, they are allowed to own and transfer agricultural land as per regulations specified by state governments.

We hope this information answers the persistent question - can foreigners buy property in Navi Mumbai, and will help you know what kind of property/land you can purchase.

Documents Needed for NRIs Buying Property in India

•       Seller's title deed
•       Approved building plan
•       Commencement certificate
•       Occupancy certificate
•       Tax payment receipts
•       Encumbrance certificate
•       Khata/mutation documents

Documents Required During Registration

•       PAN Card
•       PIO or OCI card
•       Passport
•       Passport-sized photographs
•       Address proof

Documents Needed by NRIs for Selling Property in India

•       Passport for identification
•       PAN Card with foreign residence number
•       Tax Returns
•       Sale Deed: A legal document establishing the transaction between buyers and sellers
•       Address Proof: Documents confirming addresses in India and abroad, such as ration card, telephone bills, electricity bills, life insurance policy statements, and Aadhar card.
•       Society Documents: To verify that the seller has no outstanding dues
•       Encumbrance Certificate: Ensures the property has no pending liabilities.

Tax Considerations

Individuals from abroad, including NRIs, who own property in India need to be aware of several tax obligations:

Property Taxes

These taxes are calculated based on the property's market value and vary between different states and cities in India. Rates may differ for residential and commercial properties.

Capital Gains Tax

Foreigners selling property in India might be liable for capital gains tax. It should also be noted that the tax amount depends on how long the property was held before it was sold. A property owned for over 24 months is considered a long-term asset. Thus, long-term capital gains tax will be levied over it. But for properties held for 24 months or less, short-term capital gains tax will be applicable.

Repatriation of Funds

Foreign property owners can repatriate funds from property sales under specific conditions. The repatriation amount cannot exceed the initial investment made to acquire the property. To repatriate funds, necessary documents, such as proof of property purchase, tax compliance records, and approval from the authorised dealer bank, are required.

Conclusion

Owing a property is a dream of many. But doing so in an entirely new country can be daunting. But we hope that this information will make the process quite hassle-free and smooth so that you are able to purchase a new home in Navi Mumbai soon.