Migration is as natural as breathing. Since times immemorial, Indian citizens have shown an inclination towards permanent relocation to overseas destinations in search of lucrative career opportunities and a better life.
Over the years, Expat Indians have established themselves as a formidable force in English-speaking countries such as USA, Canada, UK and Australia and have contributed to the economic, social and cultural wellbeing of these nations.
NRIs living in various parts of the world have shown an inclination for purchasing properties in Goa. The trend is to purchase properties as second home or for investment purposes. For first-time NRIs stepping into Indian soil and purchasing properties can be overwhelming.
This guide is an attempt by Poetree Homes, as Goa’s premium real estate developers to provide a step-by-step procedure on how NRIs can build their careers in a foreign country and simultaneously grow their capital back home.
STEP 1: UNDERSTAND THE LEGAL FRAMEWORK (WHAT NRIS CAN & CANNOT BUY):
Government authorities such as Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA) have formulated certain guidelines for NRIs to simplify the buying process.
- WHAT NRIs CAN BUY: Expat Indians and Overseas Citizens of India can easily purchase residential and commercial properties in Goa and major parts of India.
- WHAT NRIs CANNOT BUY: NRIs are strictly prohibited from purchasing agricultural land, plantation lands and farmhouses in India.
- WHAT NRIs CAN BUY IN GOA: While purchasing properties in Goa, NRI buyers need to ensure that the land is legally converted to a Settlement (Residential) Zone before purchasing.
STEP 2: FINANCIAL PREPARATION & BANKING SETUP:
Financial transactions are an important criteria for a real estate purchase involving Expat Indians. Purchasers cannot use foreign currency or traveller’s cheques.
THE HOLY TRINITY OF NRI ACCOUNTS: Here is a list of bank accounts that Expat Indians can set up to manage their real estate purchase and future rental income:
| Account Type | Purpose in Real Estate | Repatriation (Sending money back abroad) |
| NRE (Non-Resident External) | Best for routing funds from your home country to India for the property purchase. | Fully and freely repatriable (both principal and interest). |
| NRO (Non-Resident Ordinary) | Essential for post-purchase. This is where your Goan rental income will be deposited. | Repatriable up to USD 1 Million per financial year (subject to taxes). |
| FCNR | ||
| FCNR (Foreign Currency Non-Resident) | A term deposit account to park foreign currency and protect against exchange rate fluctuations. | Fully repatriable. |
P.S. Indian Banks are highly in favour of NRIs for home-loan purposes. Buyers can secure a loan for up to 80% of the property value, provided the EMIs are serviced through your NRE/NRO accounts or inward remittances.
STEP 3: REMOTE PROPERTY SEARCH & BULLETPROOF DUE DILIGENCE:
Comprehensive research and review need to be conducted by NRI investors before purchasing a property in Goa.
- INSIST ON RERA CERTIFICATION: RERA is the undisputed agency that calls all the shots as far as Real estate in Goa is concerned. NRI buyers need to be make sure that their property is registered with RERA.
- VERIFY COASTAL APPROVALS (CRZ & GCZMA): NRI property buyers have shown a penchant for sea-view homes in Goa. Hence while buying a property with a view of the waterfront, NRI buyers need to ensure the developer has received clearance from the Goa Coastal Zone Management Authority (GCZMA).
- DEMAND TITLE CLARITY: NRI buyers are generally unaware about the legal aspects of purchasing a property in Goa. It bodes well for Expat Indians to hire a Goan lawyer who is well-versed
STEP 4: THE BUYING PROCESS & THE POWER OF ATTORNEY (POA):
NRIs do not need to fly down to India to execute the Deed of Sale. A Special Power of Attorney (PoA) executes the entire registration process.
The following is the standard operating procedure (SOP) to smoothen the buying process for Expat Indians.
- STEP 4a - DRAFTING: The POA is formulated by the lawyer who authorises the NRI buyer’s trusted friend, family member or a legal representative in India to sign the sale deed on his behalf.
- STEP 4b - EXECUTION ABROAD: The NRI buyer prints the POA in his home country and signs it in the presence of an official at the local Indian Embassy or Consulate, or gets it notarized and apostilled (depending upon his country of residence).
- STEP 4c - ADJUDICATION IN INDIA: The buyer couriers the physical document to Goa, where his representative pays the stamp duty to get the PoA adjudicated by the local Sub-registrar.
- This document (PoA) helps the representative legally register the property, sign loan documents and take custody of the keys.
STEP 5: TAX IMPLICATIONS & REPATRIATION:
For those NRI clients, looking to earn significant returns on investment (ROI) from their property in Goa, understanding the taxation procedures is vital.
- TDS ON PURCHASE: If the property cost exceeds ₹50 Lakh, buyers need to deduct 1% TDS (Tax Deducted at Source) when they are buying from a resident Indian developer.
- TAX ON RENTAL INCOME: For NRI buyers, who rent out their Goan home, they are liable to pay income tax.
- SELLING & REPATRIATION: If the purchaser sells the property after 24 months, it might be eligible for Long-Term Capital Gains (LTCG) tax which is calculated at the rate of 12.5% (without indexation). Buyers can repatriate the sale proceeds easily by submitting Forms 15CA and 15CB signed by a Chartered Accountant.
STEP 6: POST-PURCHASE & PROPERTY MANAGEMENT:
Buying a property in Goa comes with its share of responsibilities. Maintaining a luxury property in Goa’s tropical high-monsoon climate requires continues care and repair.
Poetree Homes are Tier-I real estate developers in South Goa and we provide assistance to NRI homeowners with regards to routine maintenance and partnering with professional Property Management Services (PMS) (as and when requested by our NRI homeowners).
POETREE HOMES: YOUR TRUSTED PARTNER IN GOA
For expat Indians looking to purchase a property in Goa, trust is a vital factor. It takes years & years to build trust and we at Poetree Homes establish unwavering trust with our overseas customers through transparent RERA-approved documentation, regular virtual walkthroughs on the construction progress of their dream home.
Abodes by Poetree Homes are an ode to Goan heritage & Architecture coupled with a license to indulge in our modern amenities and the entrancing green surroundings.
Final Word: After completion of all the above formalities, when our NRI homeowners finally turn the key and enter their fairytale abode in Goa, it feels exactly like coming home.
