Can an Indian citizen buy property outside India?
Yes you can very well buy property overseas provided the country you are buying in allows for such a provision. For the purchase as of now you can remit only USD $ 250,000 (nearly Rs. 1.6 Crore) outside India in one year. Note that recently the Reserve bank of India has issued a regulation whereby when you are buying property overseas you will have to buy it in name of all remitters rather than one single person if multiple remitters pool in money to buy a property overseas.
Indians are increasingly acquiring properties across the globe and the leading destinations for offshore properties remain London, New York, Singapore and Dubai. Exotic holiday destinations such as Thailand, Malaysia, Southern France, Florida and Mauritius are also gaining rapid popularity among those looking to invest abroad in real estate.
Before even thinking of buying a property offshore one needs to be absolutely clear regarding property laws in India and other countries. Indians are permitted to buy property in foreign nations by making an annual remittance of up to $ 2,50,000 in a financial year. The Foreign Exchange Management Act also permits Indians to acquire property abroad as gifts or through inheritance. Additionally resident Indians can own property elsewhere in case it was acquired while they were not residents of India. However, one must consult trusted legal experts in the country about the local taxation policies, citizenship laws and ownership provisions on where they want to buy the property. Many nations mandate foreigners to pay huge property transaction fees while making the purchase. Extra stamp duty costs are often levied on foreigners acquiring property in certain countries.
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