Foreign Investment in Property

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Indian citizens can invest in foreign property, such as in Dubai, using the Reserve Bank of India's Liberalised Remittance Scheme (LRS). This scheme allows individuals to remit up to $250,000 annually for overseas investments. Consequently, creating liabilities through mortgage or payment plans for property purchases abroad is permissible under FEMA regulations.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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30 May 2022 My client has made investment in Dubai property
25% down payment and rest 75% to be paid in 6 years
This means liability in respect of foreign investment
Whether this arrangement is allowed under FEMA

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 May 2022 Yes it's allowed.
An Indian citizen can utilise the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India to invest in property abroad. The LRS permits free remittance of up to $250,000 per individual per financial year

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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30 May 2022 Means liability can be created and property can be purchased on mortgage or payment scheme ?

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