Indian citizens are more and more looking to invest in foreign assets and one of the things that entices them the most is purchasing property. With the USA being the world’s most dominant nation, it is no surprise that some of the Indian citizens who can afford it have a dream of purchasing a property in the USA.
However, it is not easy as it seems. There are certain rules and regulations that you must get familiar with before proceeding further ahead.
Foreign Exchange Management Act (FEMA) for purchasing property overseas
A resident Indian can own an immovable property abroad by inheritance, by purchase, or by lease. FEMA, the Foreign Exchange Management Act, outlines the provisions for overseas property. To hold a property outside India, you need special permission from the Reserve Bank of India (RBI).
By Inheritance: Immovable property purchased before July 1947 can be acquired as gift or inheritance.
By purchase: Indian residents are allowed to purchase immovable property outside India, subject to certain conditions
The first condition is that the Indian citizen has to use a Resident Foreign Currency (RFC) account to pay the property’s purchase consideration. The next condition is that the value of a property should match limits as per the Liberalised Remittance Scheme (LRS). You cannot cross the set limit of remitting 250,000 USD abroad per person in a financial year.
By lease: An Indian can acquire property under a lease. The lease to acquire the property cannot exceed 5 years at a stretch.
What types of properties can I purchase in the US?
Here is a list of properties that an Indian resident can purchase in the United States of America:
1. Single-family homes
3. Duplexes, Triplexes and Quadplexes
Why choose BookMyForex for sending money abroad to pay for your purchased property?
To pay for your purchased property, you will have to convert INR to USD and then transfer the required money in the owner’s account. These types of transfers come under S0005 in the purpose code list set by the Reserve Bank of India.
BookMyForex allows you to send money from India to USA for investments related purpose as well. With you spending quite some money to purchase a property in USA, you must save money on the foreign currency conversion part.
With BookMyForex, you will get the best possible exchange rates which are unbeatable in the market. If you go directly to a bank to remit money, you will get a fixed rate for the day and may end up spending a lot more than you could. With BookMyForex, you get live and updated rates. We update exchange rates every three seconds.
We have a fully online remittance process in place which allows you to send money from the comfort of your home. You do not need to step out from your home to send money to USA in order to buy a property.
Our unique tie-ups with several financial institutions allow us to give preferential rates to the customers. To pay for your property, you’d need to follow these four simple steps on BookMyForex:
Step One: Fill Sender’s & beneficiary’s details, money transfer purpose (investments in this case), requirement to confirm whether if you can carry forward an outward remittance or not.
Step Two: Upload the required documents online
Step Three: Transfer your funds online to book your rates
Step Four: A digital A2 form will be generated. Our partnering bank will process your transfer and provide a SWIFT acknowledgement shortly afterwards
That’s it. It is really that simple. Follow this hassle-free process to pay for your property in USA.