Foreign owned property in Goa, (Part One)

dzibead · Aug 31st, 2006, 23:25

Quote:

Originally Posted by luca

http://www.namasthenri.com/excontrol/chapt15.htm

This is the first website that i know of that actually has info on buying and owning land (by a foreigner). Take a look at Q 4 and Q 5.

There are certainly other websites that discuss the issue of foreigners buying and owning land in India -- and as Nick pointed out, this one doesn't even refer to the currently applicable legislation, so it's useless. FEMA, 1999 replaced FERA, 1973. And if you think the current laws are draconian, you should see what FERA was like! It provided for criminal penalties for many offenses.

Nick-H · Sep 1st, 2006, 00:07

You can find out the current stuff from the Horse's mouth, Reserve Bank of India site; this page here

(if I had a rupee for every time I've linked to that page on IM ... ... ... ...)

dzibead · Sep 1st, 2006, 03:40

Quote:

Originally Posted by Nick-H

(if I had a rupee for every time I've linked to that page on IM ... ... ... ...)

You could actually afford the house you and Mrs. N are trying to buy in Chennai!

goangoangone · Sep 1st, 2006, 10:04

Can anyone find this one?
Master Circular No. 05/2005-06 dated 1st. July 2006. Supposed to be on RBI website but I can't find it.

This was included in the warning given in Herald a while back.

Ok, got it. Bellcrank posted on Aug 3rd. I was offline at the time.

Ian Dalton · Sep 4th, 2006, 00:16

Quote:

Originally Posted by steven_ber

I've no time to search the web, but I read a story in today’s paper about foreign owned property in Goa.

There are strict rules attached to purchasing 'immovable' property in Goa, it seems that an affidavit saying that all the rules have been adhered to was enough in the past.

The newspaper article (in the Asian Age) suggests that all property purchased in the last few years was going to be checked to make sure the rules WERE adhered to, any failure could result in the property being confiscated.

Dear steven, you should wait till the mess is cleared up as someone who has lived in India for 40 years I am only visited by Europeans who have problems. Right now they have plenty in Goa as so many have lied and cheated the government of Goa that there will be sadness round the bend. Two Europeans near me will if asked to prove legality certain fail. One bought his house in Goa overseas and no money ever arrived in India nor has the reserve bank any record of their purchase. The other bought in the name of the builder and spent Rps 9000000 to build. A transfer was done from builder to buyer who is after many years still a visitor on a Tourist Visa and thinks she has a title???

You MUST be a resident of India and the 183 day is nonsense and started to assist some to make supposed sales. Not even a NRI can get away with the nonsense some Europeans have entered into. NRI's cannot buy without permission and crtainly not agricultire, plantation or estate land.

Yes get a good lawyer there are plenty in Goa and only work with in the Law of India

crvlvr · Sep 4th, 2006, 02:03

Quote:

Yes get a good lawyer there are plenty in Goa and only work with in the Law of India

the law is the law.. why waste your money on legal fees throwing away good money after bad. Most real estate invvestors in India have probable made a bundle due to appreciation in property value. Why not simply sell the property and rent? i am certain the interest from the sale of the property will cover the cost of rent.

Hurricane Dennis · Sep 4th, 2006, 05:19

Hello everybody I am new to this thread and am hoping you can help.

There is much talk about the rules of FEMA regarding the purchase of Indian property. However, at the moment - in the UK at least - many potential purchasers are being advised by Agents AND solicitors that to purchase property they can set up a Goan Company, which has to be traded (ie you would have to actively rent the property and pay taxes to the Goan Government on rental returns etc) and in this way you can own immoveable property in Goa, ie an apartment or house.

It would appear that this is the way that the majority of British people are being advised to buy at the moment. They are NOT being told to adher to the rules of FEMA.

The question I'd like to ask is, how do the Goan people feel about British people buying apartments on tailor made resorts with the view of renting them to holiday makers? Do they feel this would help or hinder their local economy???

As a British person hoping to invest abroad, I would really not want to do this anywhere where the local people were not in support, or where they felt foreigners were spoiling their environment or contributing to their demise. I do not think I am alone as a British subject in feeling this way. I can assure you that we are not all money grabbing morons and I am certainly not a drugs baron!! I would like to feel that if I put money into any country, it would be to help to provide local jobs and boost the economy, I would certainly not wish to deliberately spoil a beautiful country.

Your views would be received with much interest.

dzibead · Sep 4th, 2006, 08:35

Quote:

Originally Posted by Hurricane Dennis

Hello everybody I am new to this thread and am hoping you can help.

There is much talk about the rules of FEMA regarding the purchase of Indian property. However, at the moment - in the UK at least - many potential purchasers are being advised by Agents AND solicitors that to purchase property they can set up a Goan Company, which has to be traded (ie you would have to actively rent the property and pay taxes to the Goan Government on rental returns etc) and in this way you can own immoveable property in Goa, ie an apartment or house.

It would appear that this is the way that the majority of British people are being advised to buy at the moment. They are NOT being told to adher to the rules of FEMA.

The question I'd like to ask is, how do the Goan people feel about British people buying apartments on tailor made resorts with the view of renting them to holiday makers? Do they feel this would help or hinder their local economy???

As a British person hoping to invest abroad, I would really not want to do this anywhere where the local people were not in support, or where they felt foreigners were spoiling their environment or contributing to their demise. I do not think I am alone as a British subject in feeling this way. I can assure you that we are not all money grabbing morons and I am certainly not a drugs baron!! I would like to feel that if I put money into any country, it would be to help to provide local jobs and boost the economy, I would certainly not wish to deliberately spoil a beautiful country.

Your views would be received with much interest.

You've arrived rather late to this thread so I suggest (in all seriousness) that you read the 300-plus entries that preceeded yours, including the various links to newspaper articles and other things cited in them, and you will get an answer to your question. The advice you mentioned -- to set up a "company" whose only business is to rent out the property in question -- does not satisfy the FEMA and RBI regulations as far as I know, and if people are not being advised to comply with these regulations than they are being misled. You can't "bootstrap" the acquisition of property this way. Such a company is a sham if it has no business other than renting out the property in question.

I guess the reason we keep going around and around about this is that a lot of people, particularly in Britain it seems, simply don't want to hear than Indian law doesn't actually let them do what they want to do. Wake up, folks! The Raj is over!

goangoangone · Sep 4th, 2006, 08:51

First you would need to obtain a Business Visa. You need to show a business that is actively trading in your home country with a branch office in Goa. You will have to show accounts, details of directors and one person I know was asked for the minutes of their recent board meetings. Additionally, at the moment, the RBI will not permit businesses to own residential property. Is it all worth it? Of course, if you have genuine business interests, then there's no problem. It's become very difficult at the moment to get anything more than a 6 month Tourist Visa.
As already said, wait 'til it's all cleared up. There is a new RBI directive due any time now.

GoanCanuck · Sep 4th, 2006, 14:28

Quote:

Originally Posted by Hurricane Dennis

They are NOT being told to adher to the rules of FEMA.

Stay far away from such agents and solicitors. People who give this kind of "advice" are just trying to make a fast buck at your expense. If you have any problem in the future these agents and solicitors will run away from you and you will be left high and dry.

Starting a sham company to purchase property in Goa is a recipe for disaster. Don't do it if you value your money and time!

malcolmgrundy · Sep 4th, 2006, 15:34

Myself and my wıfe are goıng to Goa thıs october hopıng to purchase a property and retıre there and are tryıng to carry out all our legal oblıgatıons ın doıng thıs. At the moment we are fındıng ıt a bıt of a mınefıeld any help would be most apprecıated

malcolmgrundy · Sep 4th, 2006, 15:55

Hello all myself and my wıfe are new members to thıs forum and we are fındıng some very useful but also contradıctory ınformatıon from ıt. We fell ın love wıth goa 10 years ago and have vısıted many tımes we are now retıred and are goıng to goa thıs october hopıng to retıre there on a 6 month tourıst vısa ın the fırst ınstance. We wıll be rentıng at fırst whıle tryıng to fınd the legal posıtıon on buyıng legally ın thıs country. We would love to contact someone who has actually done thıs to fınd out any pıtfalls that we can avoıd. we dont mınd spendıng a couple of years rentıng before hand as long as we know ıt ıs all legal and above board any advıce would be most helpfull.

Hurricane Dennis · Sep 4th, 2006, 21:13

Thanks to everyone who has replied to me, it's really helpful.

Dzibead, thanks for your reply. I have read all of this thread and all the articles (how sad am I?!), but I am finding it so confusing because it seems to come across that there are two methods of purchasing (or should I say attempting to purchase!), the 182 residency route and the Company route.

I am looking to buy a property to operate solely as a holiday rentals operation (ie not live in it myself), and as such, I would be returning regular company accounts and have 2 directors (myself and my partner). I have been given the impression that this is currently legal in Goa because holiday letting comes under the umbrella of "tourist business", however some of the things I have read lately about difficulties with obtaining business visas and such like have made me wonder if the Government are getting ready to close down this method of purchase in the near future even if it is currently legal.

Does anybody have any idea what timescale the Goan Government are working to in formulating the new legislation?

Nick-H · Sep 4th, 2006, 21:27

There is no new legislation* --- just that the Goan govt has realised that people are using loopholes in the existing rules. Well, realised is probably the wrong word: I don't suppose they were unaware, it is just a case of what might be politically expedient to 'notice' now as opposd to then.

It doesn't sound to me as if there is anything wrong in your plans --- if you can set up your business, get a business visa(s), and be seen to be running it as a truly going concern, that is just what the regulations allow for. (but, really, what do I know? very little...).

*unless I missed something

.

capt_mahajan · Sep 4th, 2006, 22:17

malcomgrundy's plan seems good.

rent legally,let the dust settle and seek good legal advice.

exactly what i would do.

Sep 1st, 2006, 10:04	#349
goangoangone What happened? Join Date: Aug 2004 Location: Goa Posts: 1,953	Can anyone find this one? Master Circular No. 05/2005-06 dated 1st. July 2006. Supposed to be on RBI website but I can't find it. This was included in the warning given in Herald a while back. Ok, got it. Bellcrank posted on Aug 3rd. I was offline at the time. __________________ GoanGoan......here

Sep 4th, 2006, 15:55	#357
malcolmgrundy Member Join Date: Sep 2006 Location: india Posts: 31	buyıng ın Goa Hello all myself and my wıfe are new members to thıs forum and we are fındıng some very useful but also contradıctory ınformatıon from ıt. We fell ın love wıth goa 10 years ago and have vısıted many tımes we are now retıred and are goıng to goa thıs october hopıng to retıre there on a 6 month tourıst vısa ın the fırst ınstance. We wıll be rentıng at fırst whıle tryıng to fınd the legal posıtıon on buyıng legally ın thıs country. We would love to contact someone who has actually done thıs to fınd out any pıtfalls that we can avoıd. we dont mınd spendıng a couple of years rentıng before hand as long as we know ıt ıs all legal and above board any advıce would be most helpfull.

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Foreign owned property in Goa, (part Two)	Nick-H	Property in India	1079	Oct 25th, 2009 01:44

Sep 1st, 2006, 00:07	#347
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,180	You can find out the current stuff from the Horse's mouth, Reserve Bank of India site; this page here (if I had a rupee for every time I've linked to that page on IM ... ... ... ...)

Sep 4th, 2006, 05:19	#352
Hurricane Dennis Member Join Date: Sep 2006 Location: England Posts: 7	Hello everybody I am new to this thread and am hoping you can help. There is much talk about the rules of FEMA regarding the purchase of Indian property. However, at the moment - in the UK at least - many potential purchasers are being advised by Agents AND solicitors that to purchase property they can set up a Goan Company, which has to be traded (ie you would have to actively rent the property and pay taxes to the Goan Government on rental returns etc) and in this way you can own immoveable property in Goa, ie an apartment or house. It would appear that this is the way that the majority of British people are being advised to buy at the moment. They are NOT being told to adher to the rules of FEMA. The question I'd like to ask is, how do the Goan people feel about British people buying apartments on tailor made resorts with the view of renting them to holiday makers? Do they feel this would help or hinder their local economy??? As a British person hoping to invest abroad, I would really not want to do this anywhere where the local people were not in support, or where they felt foreigners were spoiling their environment or contributing to their demise. I do not think I am alone as a British subject in feeling this way. I can assure you that we are not all money grabbing morons and I am certainly not a drugs baron!! I would like to feel that if I put money into any country, it would be to help to provide local jobs and boost the economy, I would certainly not wish to deliberately spoil a beautiful country. Your views would be received with much interest.

Sep 4th, 2006, 08:51	#354
goangoangone What happened? Join Date: Aug 2004 Location: Goa Posts: 1,953	First you would need to obtain a Business Visa. You need to show a business that is actively trading in your home country with a branch office in Goa. You will have to show accounts, details of directors and one person I know was asked for the minutes of their recent board meetings. Additionally, at the moment, the RBI will not permit businesses to own residential property. Is it all worth it? Of course, if you have genuine business interests, then there's no problem. It's become very difficult at the moment to get anything more than a 6 month Tourist Visa. As already said, wait 'til it's all cleared up. There is a new RBI directive due any time now.

Sep 4th, 2006, 15:34	#356
malcolmgrundy Member Join Date: Sep 2006 Location: india Posts: 31	Myself and my wıfe are goıng to Goa thıs october hopıng to purchase a property and retıre there and are tryıng to carry out all our legal oblıgatıons ın doıng thıs. At the moment we are fındıng ıt a bıt of a mınefıeld any help would be most apprecıated

Sep 4th, 2006, 21:13	#358
Hurricane Dennis Member Join Date: Sep 2006 Location: England Posts: 7	Thanks to everyone who has replied to me, it's really helpful. Dzibead, thanks for your reply. I have read all of this thread and all the articles (how sad am I?!), but I am finding it so confusing because it seems to come across that there are two methods of purchasing (or should I say attempting to purchase!), the 182 residency route and the Company route. I am looking to buy a property to operate solely as a holiday rentals operation (ie not live in it myself), and as such, I would be returning regular company accounts and have 2 directors (myself and my partner). I have been given the impression that this is currently legal in Goa because holiday letting comes under the umbrella of "tourist business", however some of the things I have read lately about difficulties with obtaining business visas and such like have made me wonder if the Government are getting ready to close down this method of purchase in the near future even if it is currently legal. Does anybody have any idea what timescale the Goan Government are working to in formulating the new legislation?

Sep 4th, 2006, 21:27	#359
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,180	There is no new legislation* --- just that the Goan govt has realised that people are using loopholes in the existing rules. Well, realised is probably the wrong word: I don't suppose they were unaware, it is just a case of what might be politically expedient to 'notice' now as opposd to then. It doesn't sound to me as if there is anything wrong in your plans --- if you can set up your business, get a business visa(s), and be seen to be running it as a truly going concern, that is just what the regulations allow for. (but, really, what do I know? very little...). *unless I missed something .

Sep 4th, 2006, 22:17	#360
capt_mahajan Infidel Sufi Join Date: Sep 2005 Location: styx Posts: 13,601	malcomgrundy's plan seems good. rent legally,let the dust settle and seek good legal advice. exactly what i would do.