Modes of Acquiring Property Outside India by a Resident

Here are some notes about the modes of acquiring property outside India by a resident:

• Modes of acquiring property: There are two main modes of acquiring property outside India by a resident:
  • Direct acquisition: This is the process of buying property directly from the seller.
  • Indirect acquisition: This is the process of acquiring property through an investment vehicle, such as a company or a trust.
• Direct acquisition:
  • Procedure: The procedure for direct acquisition of property outside India by a resident is as follows:
    • The resident must find a property that they are interested in buying.
    • The resident must negotiate the terms of the purchase with the seller.
    • The resident must pay the purchase price to the seller.
    • The resident must register the property in their name.
  • Restrictions: There are some restrictions on the direct acquisition of property outside India by a resident, such as:
    • The resident must have the necessary funds to purchase the property.
    • The resident must comply with the foreign exchange regulations of India.
• Indirect acquisition:
  • Procedure: The procedure for indirect acquisition of property outside India by a resident is as follows:
    • The resident must invest in an investment vehicle that owns property outside India.
    • The resident’s investment in the investment vehicle will give them a share in the ownership of the property.
    • The resident will be entitled to receive a share of the income generated by the property.
  • Restrictions: There are some restrictions on the indirect acquisition of property outside India by a resident, such as:
    • The resident must comply with the foreign exchange regulations of India.
    • The resident must ensure that the investment vehicle is registered in India.