Few tips/ advice for foreigners to buy property in India. Part-II

4) Investment potential

If you‘re looking to buy property in India make sure you search the property market properly. Look at it from the points of view of stability, growth potential and the liquidity of the real market- after all, it’s all you are buying in booming Indian property market that may fetch you good resale value.

5) Tax market

When you buy property in India find out both the local and overseas taxation liabilities relating to property purchase, rental, resale and gains. As taxation issues and liabilities change on a country by country you’re buying in, gain tax rebate if you sell after a stipulated period and on the sale also you are required to pay some form of income tax either’ back home’ or in the country in which the property is located and if you rent it out for an income, it will be regulated as per the guidelines stipulated by RBI/ Government of India.

6) Property Purchase via an Offshore Company

The option to establish an offshore company and buy property in India is an option available to most people, as per the provision/ guidelines of RBI but whether it is an appropriate course of action it depends on many factors. Such factors include whether such company has been established as per the laws relating to foreign company ownership as well as real estate in India. By using an offshore company to buy property in India by an individual can sometimes avoid or reduce their taxation liabilities, avoid certain expenses and even laws. But the applicability of the option is something that can only be determined on an individual case basis strictly as per the rules/ regulation of RBI/ government of India.