A Complete Guide for NRIs Buying Flats in Calicut

Calicut (Kozhikode) is one of the top destinations real estate investors prefer, and for good reasons! The ‘City of Spices’ is known for its natural beauty, rich culture, and fast-paced development. The Malabar coastline, traditional art forms, and modern lifestyle create a strong bond with the homeland. These are some of the key reasons why NRI invest flats in Calicut with full confidence.

Property value and rental demand at Kozhikode are growing at a steady pace. Besides, there’s a perception of better quality compared to major metro cities. Wondering how NRIs can invest in Calicut real estate? Then this blog is for you!

Can NRIs Invest in Flats in India & Calicut? 

It is legal for Non-residential Indians (NRIs) to invest in properties anywhere in India, including cities like Calicut. They can invest in a residential or commercial property without special RBI approval. So, if you ask, “Can NRIs buy property in Calicut?”, the answer is yes! They can own a property for living or rental income. However, there are restrictions on agricultural land, plantations or farmhouses. 

NRIs can invest in properties in Calicut under the following simple rules:

• Property Eligibility: Residential (flats and houses) and commercial properties can be purchased. Agricultural land, farmhouses, and plantations are not permitted for NRI purchase.
• Funding: Payments should be made using Indian currency routed via NRE/NRO accounts and approved banking channels.
• Approvals: No prior government or RBI approval is required for residential/commercial property purchases.
• Legalities & Regulations: Ideal to work with RERA-approved projects. Comply with FEMA (Foreign Exchange Management Act) rules. Seek help from legal experts.

Why Invest in Flats in Calicut

When it comes to NRI investment in Kerala, Calicut is a strong choice. Value, long-term growth, clear property titles and trusted builders lure homebuyers and investors. Steady appreciation and good rental potential are other perks. Besides, strong infrastructure, travel options and fair property prices make Calicut real estate for NRIs worth every penny! 

Unlike metro cities, Calicut offers better comfort space and returns without financial stress. Meanwhile, NRIs seek a nostalgic connection, which Kozhikode nurtures generously. Natural attractions, rich tradition, arts and historic significance offer the cultural roots NRIs seek. They speak for the real estate trends in Calicut, which is worth exploring as a homebuyer!

Below are some key factors that make NRI invest flats in Calicut:

• Emotional Ties: NRIs often invest to stay connected to their hometown. They prioritise cultural roots and support family needs.
• Rapid Growth: Calicut’s infrastructure is booming like anything! IT hubs like Cyberpark, top-notch medical and healthcare facilities, educational institutions and commercial centres raise property value.
• Excellent Connectivity: Calicut International Airport and strong road and rail links ensure seamless connectivity.
• High Rental Demand: IT professionals, tourists, and migrants create steady opportunities for rental income.
• Affordable Premium Living: Modern flats with luxury amenities cost less than those in metro cities.
• NRI-friendly Policies: Facilities like digital registration, online payments, and virtual tours ease overseas real estate purchases.

Advantages of Investing in Calicut

In addition to the above attractions, here are the top pros of investing in Calicut that every investor seeks:

• Low-risk Strong Investment: Real estate investment in Calicut offers long-term growth. Besides, it protects you from the impact of inflation with good rental income potential.
• Serene & Secure Living: The city offers calm, peaceful neighbourhoods. Flats in Calicut offer pleasant living conditions and security apart from comfort and a modern touch.
• Growing Value: Property appreciation is steady and promising. The city’s fast development and emerging IT and business hubs boost property resale values as well.
• Modernity: Calicut lets you strike a balance between tradition and modernity. Shopping malls, world-class medical and educational facilities and modern amenities add class and comfort.

Step-by-Step Process to Invest in Flats in Calicut 

Simplicity of the process is yet another reason why NRI invest flats in Calicut. There is no requirement for any special approval from the government or the RBI. Following some simple rules suffices. NRI property investment Calicut outlines clear and legal procedures under the Indian and Kerala property laws. Below are the key steps, knowing which you can plan ahead, avoid delays and legal issues.

Choose the Right Property & Location 

Choose the property at the right location. A strategic location offers seamless road and other transport access. You’ll find essential facilities like hospitals, schools and shopping spots within your reach. Speaking of Calicut, areas near IT hubs, city centres and transport hubs offer better value. Besides, buying from a trusted builder is key to making your investment rewarding and enjoying peace of mind.

Read More: Finding the Top Builders in Calicut

Documentation & Eligibility

An NRI can purchase residential or commercial property. Agricultural land, plantations and farmhouses are not eligible for NRI purchase. You can buy flats jointly with another NRI or an Indian resident. Essential documents include:

• Proof of identity, such as a valid passport, visa/OCI (Overseas Citizenship of India)
• PAN card for tax and registration purposes
• Overseas residential address proof and income proof (payslips or ITRs)
• Bank statements and active NRE/NRO accounts, as per FEMA rules
• Power of Attorney (PoA) for in-person tasks, when you are abroad
• Property-related documents (Title deeds, encumbrance certificate, RERA certificate for applicable projects)

Legal Due Diligence

Legal checks are vital before buying a flat anywhere in India, especially for NRIs. They help ensure the property is legally approved, safe and free from disputes. Having an NRI invest flats in Calicut, requires legal due diligence. It comprises FEMA, tax rules and proper documentation. Below are the key legal checks to complete:

• Verify ownership & title through past sale deeds.
• Check Encumbrance Certificate (EC) and ensure there are no pending loans, legal claims or pending disputes.
• RERA approval or registration under Kerala RERA (KRERA) for under-construction projects.
• Verify approval of building plans and layout permission.
• Check Commencement Certificate (CC), Occupancy Certificate (OC) and No-objection Certificates (NOCs).
• Review the sale agreement through a local lawyer for clauses, payment terms, and handover dates.

Financing & Payment Norms

To make eligible property purchases in India, NRIs can fund through the following types of bank accounts:

• NRE (Non-Resident External)
• NRO (Non-Resident Ordinary)
• FCNR (Foreign Currency Non-Resident) 

Payments must be made through approved Indian banking channels and in Indian rupees. Besides, NRIs can avail home loans from Indian banks, if necessary. Direct cash payments are not permitted under Indian property law.

Registration & Stamp Duty

NRI property investment in Calicut or anywhere in India involves property registration. It is done at the local Sub-Registrar Office. This step is essential to obtain legal ownership of the flat. NRIs can also designate a Power of Attorney for these proceedings if they are abroad. Key steps in property registration include:

• Register the sale deed at the Sub-Registrar’s Office
• Pay stamp duty and registration charges as per Kerala rules
• Use a registered Power of Attorney if you cannot attend in person
• Collect the registered sale deed as proof of ownership

Stamp duty in Kerala is usually 8% of the property value, while registration charge is 2%. Rates may slightly vary by location and project type.

Taxation & Repatriation for NRIs

Tax rules matter! Having an NRI invest flats in Calicut requires compliance with these rules, as they’re important when buying or selling a property in India. They are governed by the RBI and FEMA. Tax is applicable only on income earned or received in India.

• TDS (Tax Deducted at Source) applies to rental income, interest from NRO accounts (NRE is tax-free) and gains from property sale. 
• Taxes are charged as per the current income tax laws. TDS can be adjusted while filing returns.  

Repatriation is the conversion of Indian rupees into foreign currency and transferring them to a bank account abroad. It is applicable for property sales. RBI and FEMA rules ensure legal transfer of funds and proper tax compliance. 

• Capital gains tax depends on how long the apartment is held before sale.
• Funds from NRE accounts are fully repatriable. 
• Form 15CA/15CB is required when repatriating sale proceeds after tax payment. 
• Double tax can be avoided using DTAA with a Tax Residency Certificate.

Tips to Make Your Investment Smoother

• Choose a trusted builder in Calicut who has an excellent track record
• Look for RERA registration (for under-construction projects) and essential approvals
• Understand tax rules before buying or selling
• Plan your budget, considering registration fees, stamp duty, and future upkeep costs apart from the property value
• Use NRE or NRO accounts for all payments
• Seek the help of a local lawyer to review all documents
• Designate a registered Power of Attorney if you are abroad
• Maintain copies of all payment and property records

In Summary

A unique mix of comfort, growth and long-term value is what makes an NRI invest flats in Calicut. Clear laws, strong infrastructure and rising demand are add-ons. With a trusted builder like Confident Group, NRIs can spot the right property at a strategic location. A flat that aligns with their budget and investment goals is the most rewarding. Fair deals, RERA approvals and easy procedures ensure a stress-free investment! Explore our world-class flats in Calicut to realise your real estate investment dream with confidence.

Frequently Asked Questions

1. Can NRIs buy flats in Calicut without being in India? 
Yes, they can. However, they should designate a trusted person as a registered Power of Attorney to complete the in-person procedures on their behalf.

2. What documents are needed for NRI property investment in Kerala? 
Important documents include identity proof, such as a valid passport, visa or OCI card, a PAN card, their overseas address proof, and an NRE or NRO bank account.

3. Can NRIs take home loans for flats in Calicut? 
Yes. NRIs can avail home loans from Indian banks to purchase properties. Loan approval may depend on various factors like income, credit profile, and bank rules.