NRIs have always been a major investor in the Indian Real Estate. Earlier purchasing a property for an NRI was a complex and time-consuming process, however certain guidelines issued by RBI have eased the homebuying process.
But before entering the real estate market NRIs must be aware of the essential documents required for investing in the Indian market.
PIO Card: It is mandatory for an NRI to have an Indian passport planning to invest in the Indian market. The NRI would need a PIO (person of Indian origin) if the individual is not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan. You can apply for PIO card in the Indian embassy in the country in which you reside.
Pan card: An NRI who intend to buy a property in India must apply for a pan card. A pan card is required by an NRI to file income tax returns in case they rent out their property or if the property is sold the capital gains arising from the sale of the property would be subject to capital gains tax. NRIs who are Indian citizens can apply for the pan card by filling form 49A, while the NRIs who have the citizenship of another country need to fill form 49AA.
Power of attorney: It is not necessarily required to be physically present in the country for an NRI to complete the property transaction. This document gives an individual the ownership to act on behalf of the NRI. The power of attorney should be executed on a stamp paper signed by the NRI before the lawyer of the country where he is residing. However, the power of attorney norms has become stricter for greater accountability and transparency.
Essential documents while applying for a home loan
If you are a salaried NRI and planning to apply for a home loan, there are certain documents that are required for an NRI. These include:
• Two photographs
• Address proof of the applicant
• Utility bills or driving license as address proof
• Bank statements of the last six months of your account held in the country in which you work
• Copies of salary statements of your employer
If you looking to invest in India while settled abroad, you must be aware of the essential documents required so that you make the right investment decision.