Country Buying Guides - Goa

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and Goan legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Who Can Purchase
Indian property ownership laws vary depending on your visa and residential status and your country of origin.

• Foreign Nationals
Foreign Nationals, of non-Indian origin are permitted by the Reserve Bank of India (RBI), to purchase fixed property in India provided that, on application,

o The property is for residential use only,
o That the funds for the purchase are met from the foreign exchange sent from abroad through normal banking means in any convertible currency,
o That any income received from the property, is credited to the Ordinary Non-resident Rupee (NRO) account of the purchaser. Your independent lawyer will be able to guide your through these requirements and help you with the formalities involved.

• The Residency Requirement
In order to acquire property in Goa, legally, you must fulfil the ‘residency requirement’, meaning you must prove that you have spent more than 182 days during the course of the financial year (1st April to 1st April) in India. The reason for your 182 day stay must be for on of the following reasons.

o Taking up employment in India.
o Continuing a business or vocation in India
o Any other purpose which would indicate your intention to stay in India for an uncertain period.

• Proof of Residency
The proof required can be produced through your passport and the residential permit, or other such documents. Once your residential requirement had been fulfilled there is no further authorisation needed from anybody. If you are unable to meet the ‘residency requirement’, in the short term, you can enter into an agreement to purchase with the Vendor, enabling you to lease the property until you are able to meet the requirement

• Forming a Company
Another way to buy property in India is through a private limited company. This is a very simple way to purchase although this can be very time consuming and expensive. If, at a later date, you decide to obtain your residency, then you can transfer the Deeds from the company into your name. To form a company you must have a minimum of two persons as Directors and Shareholders. A person resident outside India can also establish a branch office for carrying out business in India, and can then acquire certain property in India, which is necessary for carrying out business. This is done by obtaining permission from RBI and filing a declaration in form IPI with RBI within 90 days from the date of purchase.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property and that Title Deeds and such are in order. Your independent lawyer will do this on your behalf.

• Costs and Taxes
In Goa Stamp duty is the responsibility of the purchaser, unless your agreement states otherwise. The tax must be under the same name as is stated in the documents attracting the tax. It is calculated on the market value of the property at the date it was purchased.

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

In Assocation With The International Property Law Centre LLP