Property in Goa
To purchase immovable property in India, including Goa, which is becoming popular among foreign tourists and investors, for foreign citizen is relatively easy if he registers a company on the territory of the country and will pay taxes there. In order to have all legal rights onto commercial real estate renting it is necessary to be a legal entity too.
You need to establish a company with Private Limited form of ownership. Actually, it is not so much obligatory and necessary to have the citizen of India as one of your business partners during the company establishment and registration – there is simply no such a legal requirement in Indian law system. The charter nominal capital of your company should be not less than 100,000 rupees. The establishment of the company costs about 110,000 rupees (this is approximately $ 2,200) and its annual maintenance costs about 40,000 rupees. It is obligatorily to have a bank account in some of Indian banks. The procedure of registration of the company takes from three days to one month.
Next step you will make is a signing of a preliminary contract onto selected immovable property purchasing, after which you will need to pay a deposit in the amount of about 200,000 rupees.
Usually builder owners demand from the Vendee to pay 30-40% from the total sum they require for the project within one month after the conclusion of the contract. The rest amount you will pay in accordance with the stipulated payment scheme. Also you will have to pay 5% of stamp duty fee and 2% of registration fee from the total sale value of your future immovable property. Besides this you will need to pay legal charges (about 10, 000 rupees) and regulatory fee for the next 20 years (about 200,000 rupees).
After the completion of all these procedures you will sign the final Purchase and Sale Agreement according to which you will get all immovable property ownership rights. This contract, as well as a subsequent Formal Note of actual transfer of immovable property, must have a notarial certification. The personal presence of the Vendee is plainly required.
Property in Goa: The Rights
Construction and real estate markets in Goa are at the stage of stable growth and increasing interest from the side of investors.
So, how can the foreigner purchase the immovable property in India and, particularly in Goa, as individual person?
In actual fact, this is not so much easy to do. First of all, according to the local law system, to sell a land of agricultural purpose to foreign citizen is illegal and malpractice. The same situation happens with commercial real estate: the purchasing or renting of this type of immovable property is also impossible to do for individual person.
But still, if you want to buy a residential property or a land property, then first of all you will need to get rights of the state resident alien. To do this you must prove state authorities that you have lived in the country during last 182 days of the preceding financial year and came to the state to work, for business purposes or due to any other convincing reasons which testify and prove your long-term intentions regarding the residence in the country and immovable property purchasing.
The next following procedure is associated with a number of bureaucratic obstacles and some risks of misunderstanding in a case if you do not speak the local language well enough. Usually it is very difficult for foreign citizens to understand documents which prove the ownership of the immovable property’s seller. That’s why individual persons are recommended to give a preference to the long-term rental lease of the immovable property. Anyway, in all cases it is better and safer to seek for the assistance of a lawyer and experienced realtors. And, which is also very important, to learn the legislative framework of the country connected with the immovable property’s issues.
It is much easier to buy or rent the immovable property in India as a legal entity.
Property for sale in Goa: The Prices
Residential realty is sold in all parts of Goa. Especially for those who would like to purchase some real property in the most small but in the same time most highly and rapidly developing region of India, Goa offers a large selection of apartments and houses in newly built complexes, separate houses, mansions and detached houses, ancient villas built in Portuguese colonial style and amazing comfortable penthouses.
The most expensive residential realty proposals of Realtors are situated in the area of Calangute and Dona Paula cities (both are located in North Goa), where the average price of a residential area is above $ 1,400 per square meter. However, in general prices for residential realty in South Goa are similar to prices in North Goa. It is considered to be prestigious to have some residential property in the area of the City of Margao, but still the most popular places for residential realty purchasing are cities of Calangute and Baga both of which have a great demand among foreigners. Prices here depend mostly on the proximity to the beach and the quality of the immovable property.
Apartments in Goa are offered first of all in newly built complexes, which are made as mini-towns and two-or three-storey villas and townhouses. The average size of the living space in them is about 40-60 square meters and the average price is about $ 600-800 per square meter. For the same price you can purchase a suite villa with living area of approximately 100-120 square meters in some distance from the beach.
Prices for separate houses vary depending on the residential property condition and its location. It is possible to buy a house with a small plot of land for $ 30 000-50 000, but it will definitely need a large and urgent reparation.
Amazing luxury villas and huge luxury old houses in good condition are sold at prices of more than one million dollars USD.
Of course, it is possible to purchase some residential property unit for several thousand dollars USD ($ 5 000-12 000, for example), but in this case you will get a small bungalow or a tiny studio apartment in a large distance from the beach.