Residency Rules – What Every Homebuyer and Renter Should Know

If you’re looking to buy or rent a home, the first thing you’ll run into is a set of residency rules. These rules decide if you can own a property, what taxes you owe, and even which mortgage you qualify for. Below we break down the most common rules you’ll face, using easy examples so you can act fast.

Core Residency Rules for Property Buyers

In India, many projects like Shriram Chirping Woods require you to be an Indian resident or hold a valid OCI card. The developer will ask for proof of address, a PAN card, and sometimes a visa copy if you’re a foreign national. Without these, your booking may be rejected.

Across the US, states differ. For example, Maryland lets non‑residents buy homes, but you still need a US tax ID (SSN or ITIN) to close the deal. In New York, landlords often ask for a 3X rent rule – you must earn three times the monthly rent – which is a residency‑related income test.

Australia has a clear split: residents can claim first‑home buyer concessions, while non‑residents face higher stamp duties and may need approval from the Foreign Investment Review Board. Checking your legal residency status before you start looking can save you from surprise fees.

How Tax Residency Affects Your Real Estate Deals

Tax residency decides where you pay income tax on rental earnings or capital gains. If you’re an Australian tax resident, you’ll pay tax on worldwide income, including rent from a property in India. If you’re a non‑resident, you only pay tax on Australian‑sourced income.

In the US, the IRS uses the Substantial Presence Test. Stay 183 days or more in a year, and you become a tax resident, meaning you’ll file a full tax return on any rental profit worldwide. This can change whether you qualify for certain deductions.

India’s 5‑year rule still matters for capital gains. If you sell a property within five years of purchase, you pay short‑term capital gains tax at your slab rate. Holding beyond five years reduces the tax rate to 20% with indexation.

Knowing which residency definition applies to you helps you plan the right financing, avoid penalties, and pick the best location for your next home.

Bottom line: always verify your legal residency, gather the required documents, and understand the tax impact before you sign any agreement. A quick chat with a local real‑estate lawyer or tax advisor can clear up doubts and keep your purchase on track.

Got a specific residency question? Drop a comment or reach out to our team – we’re here to make the process simple and transparent.