British Expats - Second Home tax

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- - Second Home tax (https://britishexpats.com/forum/goa-170/second-home-tax-696202/)

Re: Second Home tax

Quote:

Originally Posted by a_f_d (Post 9030960)

FEMA 13
Foreign nationals of non-Indian origin resident outside India are not permitted to acquire any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India.

RBI FAQ:
Q.10. Whether a non-resident can inherit immovable property in India?
A.10. Yes, a person resident outside India i.e.
i) an NRI
ii) a PIO and
iii) a foreign national of non-Indian origin
can inherit and hold immovable property in India from a person who was resident in India.
However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek specific approval of Reserve Bank.

Q.11. From whom can the non-resident inherit immovable property?
A.11. A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from

(a) a person resident in India.
(b) a person resident outside India
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange regulations applicable at that point of time.

AndyD 8-)#

Thanks Andy,

but is there not a bit of conflict between A.10. iii and A.11.b,
Maybe its just me as my head is pickled at the moment but in lay mans terms,

Do i as a pio have to be resident in India before my kids can inherit my flat giving that they are classed as FN?

Re: Second Home tax

Quote:

Originally Posted by Remy-Ireland (Post 9030975)

Why get your knickers in a twist over it Remy - there is nothing any of us can do about it - I am just going to let things ride now. When the time comes they will have changed the rules a hundred times, and still be ..... all we can do about it. See you soon x

Re: Second Home tax

Quote:

Originally Posted by Remy-Ireland (Post 9030975)

Remy my understanding after reading point 2 of this document is that a sure shot method for your child(ren) to qualify as 'residents' is to apply for PIO status - not sure how old they have to be to be eligible, but as per this document it seems that children of those who hold pio status are eligible to be pio's themselves. once they are pio's they have the same rights as a residents (as you do) and will therefore be able to transfer inherited properties in their own names

Re: Second Home tax

Andy, can you put that post on the FEMA 1999 sticky thread, with the RBI FAQ link for quick reference. Thanks.

Under the FEMA part, I take it that your non resident non Indian beneficiaries have to prove you were a resident of India at time of purchase of the immoveable property (i.e., the deceased complied with FEMA and it was a 'legal purchase') but the deceased need not necessarily have been a resident at time of death? Depends on how you interpret 'was a resident'; vague, as usual.

In other words we could leave the mess of proving legitimacy of purchase under FEMA to our beneficiaries to sort out instead of shortening our lives with the stress of doing so as we are now? And we could abandon our properties until such time (in much the same way that so many empty Goan properties lie empty because of family dispute amongst disparate family members). That is, if the D of E don't confiscate in the interim.

It also appears that Indians can bequeath non resident foreigners their properties without restriction.

It would seem that a properly drawn up will in India is useful to back up your UK will (so long as your beneficiaries are prepared for a protracted legal battle). Should that be a Goan will under Portugese Civil Code, or Indian?? Any experience/ advice welcome.

Remy, I would think being a PIO would make things a lot easier for your situation, though maybe you would have to prove residency under FEMA at time of purchase? The ambiguity is in FEMA with the tense of 'was' in the same way as the interpretation of 'uncertain period' in FEMA 2 (v)(i).

I don't think we should worry too much about second homes in India. Not while we're trying to defend our first ones.

Re: Second Home tax

Thanks Andy and Babu.

As my two kids are indeed stepchildren (by definition of the law) they don't qualify for pio status (to the best of my knowledge).

Re: Second Home tax

Quote:

Originally Posted by Remy-Ireland (Post 9031168)

Thanks Andy and Babu.

As my two kids are indeed stepchildren (by definition of the law) they don't qualify for pio status (to the best of my knowledge).

Sorry unable to help Remy, husband put our unshared property into children's names some years ago. This by passes any problems if I (as a foreigner) inherited. I doubt if it will be any financial benefit to them only responsibility.