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A Potential Solution To The Farang Land Ownership Conundrum


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"if i could own land and have a ten year visa (as i have for india)...."

I didn't think foreigners could own land in India?

Foreign Exchange Management Act now makes it reasonably easy to purchase a property to live in, but does not allow speculation. Also no repatriation of funds. However there are still of course many cases of local corruption, and if you don't pay up when you have purchased outside FEMA you will find lots of squatters have taken over your property with the blessing of the District Government. :o

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Whats the legality of foreign owned business in Inida. Could you buy land and build a hotel and run it, or is that illegal.

I heard the maximum for foreigners is 5 year lease.

The 5 year lease is the maximum if you do not want to apply to the Chief General Manager, Reserve Bank of India for permission to own property. If it's just for your own home, no problem owning. However as you suggest the Hotel business, you may Incorporate the Company in India with 100% foreign ownership and purchase land for the building ( in fact even if you're Incorporated outside India). I am not an expert on Indian Company ownership, but believe hotels are outside equity limitation. Now if you wanted to open a Supermarket you'd be out of luck, as WalMart have found out. :o

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  • 4 years later...

If you pay cash for any investment it is dumb - as you would already have lost 42% of your pre-tax earnings to tax.

If you borrow to make the investment then an interest only loan would keep the wnership with the bank - although you could benefit from any appreciation in the property (after tax)

A Company structure could be utilized if it is a house, block of land etc. As you would be putting in the deposit and finance to pay the interest you have the opportunity of registering a lien - and you control the property through the financing, not by the ownership of the real estate or shareholding

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