Just read an article on Goanet News which might be of intrest to people buying a property or starting a business in Goa. From: Goanet News <goanetreader@gmail.com>
Date: 4 June 2006 04:07:48 BST
To: goanet-news@goanet.org
Subject: *** Goa wants expats to leave (Pushpa Iyengar in DNA)
Reply-To: goanet@goanet.org, fredericknoronha@gmail.com
http://www.dnaindia.com/report.asp?NewsID=1033200
*Edit due to copyright issues I've had to delete this copy. Please provide link to the news item -Glynis*
Hi Cornishboy - seen this one coming for a while - It was also in the Herald and the Navahind but not as much to the point as this article.
IMO it won't happen as the Government have too much to lose by kicking out the foreigners, they have left it too late.
There was a poll on the Herald site and about 56% said that foreigners should not be allowed to buy property and/or land in Goa - 210 people.
IMO it won't happen as the Government have too much to lose by kicking out the foreigners, they have left it too late.
There was a poll on the Herald site and about 56% said that foreigners should not be allowed to buy property and/or land in Goa - 210 people.
Hi, can anyone recommend a Surveyor in North Goa? We require one to visit the site as building progresses.
Hi, Justin. I'm a new (well, not really, I was off the list for awhile and forgot my user name, so made a new one and have been browsing). I'm an American with Goan roots and have been living here for quite awhile. There are some excellent dentists in Goa now, as well as doctors and new modern hospital facilities in both North Goa and South Goa. Goa medical college is no longer the only option.
I have two houses here and am renting one out to a young South American couple, academics. They had some similar concerns, but they've been here for 6 months now, with their infant, and have been fine with the medical care they've received so far.
I have two houses here and am renting one out to a young South American couple, academics. They had some similar concerns, but they've been here for 6 months now, with their infant, and have been fine with the medical care they've received so far.
Re recent posts here and newspaper reports what is the position on the ground? We have friends who have owned a flat in Calangute for the past three years. They use it Nov,-April. At present they are out of the u.k. travelling in Europe and dont know a thing about the trouble that seems to be brewing up. Should they and lots of other that contribute to this site be worried? Alan
sorry for the ignorance gramps but what troubles have there been??
bobbsy, there appears to be some sort of crackdown on foreigners owning property and businesses in Goa. Something to do with the way ownership has been registered.
yes there were two or three articles in the newspaper regarding this but it has been on the cards for some time, you cannot now open a bank account in Goa if you are on a tourist visa although you can open a savings account only, not a cheque account, my husband was actually in the HSBC bank when a girl who was now living in Goa was vehemently refused an account, they are serious about this. and also they are going to go back ex amount of years and (dont want to alarm any one just saying what the papers said here) the government are going to repossess any properties that were not bought through correwct channels and with correct compliance ie 182 days so in other words if you fiddled it with a bent Notary or Advocate that could be a prob, also you cant now buy property on a tourist visa. 
they are getting very very strict about all this, also they are clamping down on foreigners opening businesses and are going to close any 'illegal' ones, you could read these articles probably if you go back into the archives of the local papers? it is going to cause a lot of people a lot of problems they are also talking about stopping long term rentals they want to discourage '6 monthers' and get 2 and 3 week tourists who 'spend more'!!
Chilly
they are getting very very strict about all this, also they are clamping down on foreigners opening businesses and are going to close any 'illegal' ones, you could read these articles probably if you go back into the archives of the local papers? it is going to cause a lot of people a lot of problems they are also talking about stopping long term rentals they want to discourage '6 monthers' and get 2 and 3 week tourists who 'spend more'!!Chilly
hi chilly what is the correct procedure for buying property i know that you cannot get the deeds till you have done 182 days in what ways can they take the propertyback
Hi Toe
As I understand you cannot buy on a tourist visa now and have to have a business visa, (which of course holds its own complications!! as in u can only get 2 year visa and there are other rules re this)
you might find the following interesting:
A.2 General permission is available to purchase only a residential / commercial property in India to a person resident outside India who is a citizen of India (NRI) or who is a person of Indian origin (PIO).
Chilly
As I understand you cannot buy on a tourist visa now and have to have a business visa, (which of course holds its own complications!! as in u can only get 2 year visa and there are other rules re this)
you might find the following interesting:
Q.2 Under the extant foreign exchange regulations to whom is general permission available for purchase of immovable property in India ?Q.7 Can a foreign national of non-Indian origin resident outside India acquire any immovable property in India by way of purchase ?
A.7 No. Under section 2(ze) of the Foreign Exchange Management Act, 1999 'transfer' includes among others, 'purchase'. Therefore, a foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of purchase.
A.2 General permission is available to purchase only a residential / commercial property in India to a person resident outside India who is a citizen of India (NRI) or who is a person of Indian origin (PIO).
so Toe all a bit complicated really!!! and contradictory in parts i think!!! i dont know but you might find the following website useful, http://www.fema.rbi.org.in I did have another interesting website I found with lots off Info but cant locate it right now, but as i understand it you have to go though RBI to comply with any purchases.which means your payments have to go through the correct channels, also I don't know if you know but should you sell your property in Goa you can only bring out the money you actually paid for it, not the profit made, which is, i think, why the money has to be paid and receipted through certain channels.Q.6 Can a name of a foreign national of non-Indian origin be added as a second holder to a residential / commercial property purchased by NRI / PIO ?
A.6 No
Q. Under erstwhile FERA, foreign nationals of non-Indian origin resident in India or outside India had with the specific approval of Reserve Bank acquired residential property in India. While they can continue to hold the same under the provisions of Section 6(5) of FEMA, 1999 can they transfer such property ?
A.50 Yes, only with the prior approval of Reserve Bank.
Q.51 Is a person resident in India governed by the provisions of Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000 ?
A.51 A person resident in India who is a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan is governed by the provisions of Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000.
Q.52 Where are the terms a `person resident in India' and a `person resident outside India' defined ?
A.52 Section 2 (v) and Section 2 (w) of the FEMA, 1999 defines `person resident in India' and a `person resident outside India' respectively.
Q.53 What is meant by a person resident in India ?
A.53 From FEMA angle, a person resident in India means a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year (April-March) and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period. In other words, to be treated as `a person resident in India' under FEMA a person has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the preceding financial year) but has also to comply with the condition of the purpose / intention of stay.
Q.54 Does Reserve Bank determine the residential status of a person for the purpose of acquisition of immovable property in India ?
A.54 No. Under FEMA residential status is determined by operation of law. The onus is on an individual to prove his / her residential status if question by any other authority.
Q.55 If a foreign national (except a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan) is a person resident in India as per the provisions of Section (v) (i)B of the FEMA, 1999 does he require approval of RBI to purchase any immovable property in India ?
A.55 No, he does not require approval from Reserve Bank from FEMA angle. However, approvals if any, required in terms of regulations prescribed by other authorities such as the concerned State Government etc. will have to be obtained by him / her.
Chilly
Sorry Toe, forgot to answer your other bit, they are saying that anyone who through the advocate, notary,(underhandeldy..buckshee!!) got their deeds illegally by for instance lying about the 182 days will be liable to have their property confiscated. also people using Goans to buy their property for them in their names to then transfer over, this is illegal i believe, not meaning to scaremonger just reporting what they are saying
Chilly
Chilly
this is about opening bank accounts, these do not have a cheque book and last only 6 mths as I understand it and see my previous post, also I am pretty sure you can only put stirling in.
All a bit worrying really for some isn't it, I am fortunate as we are PIO.... Chilly
if you are on a tourist visa although you can open a savings account only, not a cheque account, my husband was actually in the HSBC bank when a girl who was now living in Goa was vehemently refused an account, they are serious about this.
6. Can foreign tourists open a bank account in India during their short visit ?
Yes. Foreign tourists during their short visit to India can open a Non-Resident (Ordinary) Rupee (NRO) account with any bank dealing in foreign exchange. Such account can be open upto a maximum period of 6 months.
7. What credits can be made to such accounts ?
Funds remitted from outside India or those obtained by sale of foreign exchange brought by the tourists to India can be credited to the NRO account.
8. Can the NRO account be used for making local payments ?
Yes. The tourists can freely make local payments by debit to the NRO account.
All a bit worrying really for some isn't it, I am fortunate as we are PIO.... Chilly
from another source:
ChillyThe Foreign Exchange Management Act, 1999 (FEMA), came in force with effect from June 1, 2000. Section 6(3)(i) of the Act empowers the Reserve Bank to frame regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property in India by certain persons mainly residents outside India. The restrictions under this clause are not applicable to a lease of immovable property for a period not exceeding five years.
The regulations made by the Reserve Bank are called Foreign Exchange Management (Acquisition and Transfer of Immovable property in India) Regulations, 2000, and have been notified vide Notification FEMA No.21/2000-RB of May 3,2000. Full text of the Notification is available on the Bank's website (INVALID URL Synopsis of the said Regulations is as under:
All persons, whether resident in India or outside India, who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, require prior permission of Reserve Bank for acquiring or transferring any immovable property in India.
A person resident outside India, who has been permitted by Reserve Bank to establish a branch, or office, or place of business in India (excluding a Laison Office), has general permission of Reserve Bank to acquire immovable property in India , which is necessary for, or incidental to, the activity. However, in such cases a declaration, in prescribed form (IPI), is required to be filed with the Reserve Bank, within 90 days of the acquisition of immovable property.
Chilly
Your quotes are what I found when I looked into buying in Goa. I was told by one agent that it was no bother and by another that buying in Goa is a HUGE gamble. You could make money or you could lose the lot. I also work with a PIO who is unable to take the proceeds of the sale of her parents house out of the country. The only thing they can do is get her brother to buy them the plane tickets with the money and use the money when they are over.
Your quotes are what I found when I looked into buying in Goa. I was told by one agent that it was no bother and by another that buying in Goa is a HUGE gamble. You could make money or you could lose the lot. I also work with a PIO who is unable to take the proceeds of the sale of her parents house out of the country. The only thing they can do is get her brother to buy them the plane tickets with the money and use the money when they are over.
hi Fiona
Yes and the problem is now that because there are so many people buying and so much building going on, it has become an issue suddenly, and they are really tightening up big time, two restuarants run by Brits were closed in April aswell, remember 'Porkys' (I think it was) they closed with only a few days notice after running a successful business, also they are hitting the Brit places if they stay open later than allowed, it is pretty worrying for anyone who hasnt 'followed the rules' as although the Goans are generally really easy going when they do dig there heels in they don't mess about, the other prob is that the locals are now having probs buying in their own areas and this is causing a lot of ill feeling generally. They are talking about making this information more available to tourists and frankly so they should, because the tourist money was good enough before Goa was really 'on the map'
Gilly
Yes and the problem is now that because there are so many people buying and so much building going on, it has become an issue suddenly, and they are really tightening up big time, two restuarants run by Brits were closed in April aswell, remember 'Porkys' (I think it was) they closed with only a few days notice after running a successful business, also they are hitting the Brit places if they stay open later than allowed, it is pretty worrying for anyone who hasnt 'followed the rules' as although the Goans are generally really easy going when they do dig there heels in they don't mess about, the other prob is that the locals are now having probs buying in their own areas and this is causing a lot of ill feeling generally. They are talking about making this information more available to tourists and frankly so they should, because the tourist money was good enough before Goa was really 'on the map'
Gilly
hi chilly thanks for the infomation it was really helpful dont need to worry now as we went through the correct channels for buying so all is ok 
Buying property in Goa
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Here are the facts about buying property in Goa. Any foreign national who desires to buy in Goa first has to reside in Goa for 182 days or more in a fiancial year. (May 1st to April 31st). However, it is also legal for a 100 percent foreign owned company to purchase property. The comapany then has to submit accounts for each financial year. The company also has to conduct meetings at which the minutes are recorded. All this has to be conducted by a company secretary which the company (represented by its director or directors) hires for a fee. The company is then free to rent out the properties acquired by it as this constitutes the carrying out of businness activities by the company. Hence the director(s) of the company are then rented out the property in which they live. The property is owned by the company at all times. However , since the directors control the company, the property is their own for all practical purposes. This is how most foreigners have bought property in Goa. It is perfectly legal as long as you adhere to the above mentioned guidelines. A point though- The government of Goa has made hasty statements that will not stand in a court of law in the republic of India. Goa would do well to realise that foreign and economic policy is dictated by the central Government in Delhi. Hence they should not go about making absurd statements as finally ,they are subject to Indian law! Further more, India is a signatory to WTO and is bound by it to allow companies to be 100 percent foreign owned and own immoveable property on Indian territory (Goa is Indian teritory even if they do not like it) I would advise most people wanting to buy in Goa to hire a Goan lawyer for the checking of papers, etc, but then take up the services of a non Goan (Indian) lawyer for company formation, set up ,etc.
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Here are the facts about buying property in Goa. Any foreign national who desires to buy in Goa first has to reside in Goa for 182 days or more in a fiancial year. (May 1st to April 31st). However, it is also legal for a 100 percent foreign owned company to purchase property. The comapany then has to submit accounts for each financial year. The company also has to conduct meetings at which the minutes are recorded. All this has to be conducted by a company secretary which the company (represented by its director or directors) hires for a fee. The company is then free to rent out the properties acquired by it as this constitutes the carrying out of businness activities by the company. Hence the director(s) of the company are then rented out the property in which they live. The property is owned by the company at all times. However , since the directors control the company, the property is their own for all practical purposes. This is how most foreigners have bought property in Goa. It is perfectly legal as long as you adhere to the above mentioned guidelines. A point though- The government of Goa has made hasty statements that will not stand in a court of law in the republic of India. Goa would do well to realise that foreign and economic policy is dictated by the central Government in Delhi. Hence they should not go about making absurd statements as finally ,they are subject to Indian law! Further more, India is a signatory to WTO and is bound by it to allow companies to be 100 percent foreign owned and own immoveable property on Indian territory (Goa is Indian teritory even if they do not like it) I would advise most people wanting to buy in Goa to hire a Goan lawyer for the checking of papers, etc, but then take up the services of a non Goan (Indian) lawyer for company formation, set up ,etc.
"they are also talking about stopping long term rental - they want to discourage 6 monthers and get 2 - 3 week tourist who spend more."
From chilli - thank you.
We stay for about 5 and a half months and can't believe that Goan people will allow this to happen - what will THEY give us - a months passport into Goa!!
Can you believe THEY want to do this - when I read this yesterday I had a look in my diary and our ATM withdrawals.
We have a monthly minimum spend of 33.000rps (£423 which is alot to very many Goan people) which includes our rent, bike hire, food to cook at home, my yoga, reflexology every week, hair, nails, clothes etc. which are all spent with Goan people.
On top of that is our going out money - eating out, bars, excursions, Taj nights etc.
If THEY stop us 6 monthers I know very many Goan people who will be very upset.
If we go to our regular shack (or any other) 4 days a week and spend 250 rps - food only - that is 1000 a week for 23 weeks = 23.000 rps John won't have in his till at the end of the season and how many twikers will spend that kind of money in 14 days. Plus we go there for BBQ nights - Xmas and New Year etc. etc.
Rant over
From chilli - thank you.
We stay for about 5 and a half months and can't believe that Goan people will allow this to happen - what will THEY give us - a months passport into Goa!!
Can you believe THEY want to do this - when I read this yesterday I had a look in my diary and our ATM withdrawals.
We have a monthly minimum spend of 33.000rps (£423 which is alot to very many Goan people) which includes our rent, bike hire, food to cook at home, my yoga, reflexology every week, hair, nails, clothes etc. which are all spent with Goan people.
On top of that is our going out money - eating out, bars, excursions, Taj nights etc.
If THEY stop us 6 monthers I know very many Goan people who will be very upset.
If we go to our regular shack (or any other) 4 days a week and spend 250 rps - food only - that is 1000 a week for 23 weeks = 23.000 rps John won't have in his till at the end of the season and how many twikers will spend that kind of money in 14 days. Plus we go there for BBQ nights - Xmas and New Year etc. etc.
Rant over
Since I posted earlier I have been in touch with other 6 monthers who rent on the same complex and told them what I had read on here - we have all decided that if that is what the Goan Government want then we will move to Thailand en mass but know quite well that our landlord will still want all of us to come to Goa in November.
I am going to get in touch with Dr Willie de Souza and see what he has to say about this.
I am going to get in touch with Dr Willie de Souza and see what he has to say about this.
seems that the thread has gone a little quiet - perhaps the report from goa re the clampdown on foreigners owning property in Goa has made everybody think!! But the question really is that if (whoever you are) own or rent a property in Goa - spend your money (that you earn in your home country) in Goa and are good "promoters" of everything that Goa has to offer - how can anyone complain? Brian.
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