THINKSPIRERERA, FEMA & the HNI: structuring real estate investments cleanly
For significant property positions, the structure decides the exit. Three regimes touch every serious transaction. Read them together.
Significant real-estate investment in India sits at the intersection of three regimes: RERA for the asset, FEMA for the money when any party is non-resident, and tax for the structure. Advisors who read them separately produce clean answers to the wrong question.
RERA: diligence the project, not just the title
Registration status, quarterly disclosure history, litigation against the promoter, the sanctioned-plan trail. A clean title on a troubled project is still a troubled investment.
FEMA: the residency of the rupee
When the buyer, seller or funds are non-resident, the transaction routes through FEMA's property and remittance rules: what may be bought, through which account, and what can be repatriated on exit. The exit question is the one to answer first: money that enters easily does not always leave easily.
Tax: withholding and the holding
Purchases from non-resident sellers carry withholding obligations the buyer often discovers late. And the choice of holding (personal name, LLP, company, trust) changes stamp duty now, rental taxation during, and capital-gains treatment at exit. Model all three moments before signing anything.
Structuring a significant property position? This is a quoted-and-capped mandate, handled discreetly.
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