How Can Indians Buy Property In America? Expert Weighs In

Are you a Non-Resident Indian (NRI) living in the United States of America? Are you looking to buy property in the USA? This article is about Indians who can buy property in the States and what rules and regulations they must be wary of.

We will also tell you if buying property in a foreign country is a more feasible option than owning a piece of land or an apartment in India. Since investing in property is a huge decision, you cannot afford to go wrong with it.

Can Indians Buy Property In America?

Any Indian living in America can buy property there. The States have no restrictions on foreigners purchasing land in the country. They are quite lenient about it, and it helps them with the overall growth of the country’s economy.

While the laws are not that strict, you might have to bear through regulations by the Home Owner's Association and other such organisations. They have a separate rule book which you will have to abide by.

If you are an Indian looking to buy property in the USA, you might be levied a certain amount of tax. Here are a few things that you need to note and be careful while investing in immovable assets.

Annual Tax Return

We connected with finance expert Bhanu Pathak to speak about the tax implications of buying property in the states. He said that irrespective of a homeowner’s nationality, they have to file an annual tax return every year.

When you are an American or Indian, this process will help you avail of tax benefits. You can even claim deductions by filing taxes and becoming a responsible citizen. He added that the Internal Revenue System (IRS) is a platform that foreigners or people with Indian nationality can use to file their annual tax returns.

Capital Gain Tax

It is another kind of tax that is levied on purchasing property in the States. It refers to the amount applicable to the value of the property after selling it. If you earn any profit after selling the house or any other real estate property, you will have to pay tax on it. If you are purchasing the property with a mindset of reselling it after a few years, you should be wary of capital gain tax.

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Federal Tax

Also called Estate or Death Tax, Federal Tax is when the IRS charges the owner or a real estate investor. It is nearly 46% of the value of the property, irrespective of the nationality of the buyer. If you are an Indian or a foreigner, it includes a rebate of $60,000.

If you are still planning to purchase property in America (Save Money During Grocery Shopping In America), you should consult a native lawyer who can guide you and make you aware of the implications of taxes and laws. You should also speak to a real estate agent because they can help you connect with the right people in the authority, and provide some useful information.

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If you apply with all the valid and essential documents to purchase the property, you might not come across any issue in getting approval for the loan, and live happily in your dream house.