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A Guide to Buying Property in Ahmedabad for NRIs: Legal & Financial Aspects

Ahmedabad is one of the fastest-growing cities in India. Many people who live outside of India (NRIs) are interested in buying homes or businesses there. Ahmedabad has a great infrastructure, many business opportunities, and a rich culture, making it a good investment place.

However, NRIs need to understand the legal and financial rules before buying property.

We are one of the best real estate Developers in Ahmedabad. We created this guide to help NRIs make smart decisions about investing in property.

Legal Aspects for NRIs Buying Property in Ahmedabad

1. Eligibility to Buy Property

Under the Foreign Exchange Management Act (FEMA), NRIs and Persons of Indian Origin (PIOs) are permitted to buy residential and commercial properties in Ahmedabad without special permission. However, they can’t buy farmland, plantation property, or farmhouses unless they inherit it or receive it as a gift.

2. Documentation Required

NRIs must provide the following documents to buy property in Ahmedabad:

• Valid Indian passport or OCI card (Overseas Citizen of India) 
• PAN card (for taxes)
• Proof of address (in India and where they live now)
• Recent photos
• Power of Attorney (if they can’t be in India for the deal)

3. Registration of Property

After buying the property, it needs to be registered according to the law. The buyer needs to sign a sale deed and pay taxes and registration fees to legally own the property.

4. Taxation Rules

NRIs are subject to taxation on property purchases. Key tax aspects include:

• TDS (Tax Deducted at Source): If the property value exceeds ₹50 lakh, the buyer must deduct 1% TDS and deposit it with the Income Tax Department.
• Capital Gains Tax: if the property is sold within two years, they pay a different tax. If they sell it after two years, they can pay less tax if they use the money to buy another property.
• Rental Income Taxation: If the property is rented out, NRIs must pay tax on the money they earn from rent.

Financial Aspects for NRIs Buying Property in Ahmedabad

1. Home Loan Facilities

NRIs can avail of home loans from Indian banks such as HDFC, ICICI, SBI, and others. The loan is offered under RBI guidelines, and the repayment must be made through NRE/NRO accounts. Key considerations:

• NRIs need to provide income proof, employment details, and an NRI account.
• The loan tenure usually extends up to 20 years.
• Repayments can be made in Indian Rupees via an NRE/NRO account.

2. Mode of Payment

The payment for purchasing property in Ahmedabad must be made in Indian Rupees through authorized banking channels. NRIs can use:

• NRE (Non-Resident External) Account: For repatriable funds
• NRO (Non-Resident Ordinary) Account: For non-repatriable funds
• FCNR (Foreign Currency Non-Resident) Account

3. Repatriation of Funds

NRIs can repatriate the sale proceeds of property under certain conditions:

• The original purchase was made using NRE/FCNR accounts.
• Repatriation is limited to two properties.
• The amount should not exceed USD 1 million per financial year.

Why Invest in Ahmedabad Real Estate?

Ahmedabad is an ideal city for NRIs to invest in due to its rapid urbanization, infrastructural growth, and high rental yields. Key reasons include:

• Fast-Growing City: Ahmedabad is growing very quickly.
• Good Infrastructure: The city has good roads, buildings, and other important things.
• Lots of Businesses: Many IT companies, industrial areas, and special economic zones are growing in Ahmedabad.
• High Returns: Property values in Ahmedabad are likely to increase significantly.
• Good Quality of Life: Ahmedabad has excellent healthcare, education, and places for entertainment.

How to Choose the Best Residential & Commercial Property In Ahmedabad?

Investing in Ahmedabad’s real estate can be highly rewarding for NRIs, provided they understand the legal and financial landscape. As The Best Real Estate developers in Ahmedabad, we assist NRIs in making seamless property investments with transparency and expertise. If you are an NRI looking to invest in Ahmedabad, contact us today for expert guidance and exclusive property options!

For More Updates on NRI Real Estate Investments In Ahmedabad, stay tuned to our blogs!

Disclaimer: This blog represents our point of view based on research. Please check legal and government official documents before investing.