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Residency, NRE vs NRO, TDS, where you can invest, taking money out, and what changes in your country of residence — in one place.
As an NRI, India taxes only your Indian income. Keep foreign earnings in an NRE account (interest tax-free, fully repatriable) and Indian income in an NRO account (interest taxed, up to USD 1 million a year can leave). Give Indian payers a Tax Residency Certificate and Form 10F to get the lower treaty TDS rate, and file ITR-2 to reclaim any excess. Check your TDS with the NRI TDS calculator.
| NRE | NRO | |
|---|---|---|
| Money that goes in | Income earned abroad | Income earned in India (rent, dividends, pension, interest) |
| Interest in India | Tax-free for a non-resident | Taxable; TDS at 30% plus surcharge and cess, reducible to the treaty rate |
| Taking money out | Fully repatriable | Up to USD 1 million per financial year, with Form 15CA (and 15CB from a CA) |
| Joint holder | Another non-resident only | A resident Indian is allowed |
| When you move back | Redesignated as a resident account or RFC | Becomes a regular resident account |
Most NRIs keep both: NRE for money sent from abroad, NRO for rent, dividends and pension earned in India. You cannot convert NRO to NRE, but you can move up to USD 1 million a year across after tax.
India taxes your Indian income the same way wherever you live. What changes is how your country of residence treats it. The treaty TDS rate for your country is in the NRI TDS calculator.
🇺🇸NRI tax in USA
Indian bank and demat accounts are reported on FBAR (FinCEN 114) and Form 8938. Indian tax paid is claimed as a Foreign Tax Credit on Form 1116. Several Indian AMCs do not accept US-resident investors because of FATCA paperwork.
🇬🇧NRI tax in UK
Indian income is declared through HMRC Self Assessment with credit for Indian tax. The non-dom remittance basis ended on 6 April 2025; new arrivals now get the four-year Foreign Income and Gains regime instead.
🇨🇦NRI tax in Canada
Indian assets costing more than C$100,000 in total are reported on Form T1135. Canada taxes worldwide income and credits Indian tax under the treaty; some AMCs restrict Canadian residents.
🇦🇺NRI tax in Australia
Australian residents declare Indian income to the ATO and claim a foreign income tax offset for Indian tax. Indian property sale gains are taxed in India first.
🇦🇪NRI tax in UAE
No personal income tax in the UAE, so Indian tax on Indian income is usually the final tax. With a UAE Tax Residency Certificate the treaty rate on NRO interest applies.
🇸🇬NRI tax in Singapore
Singapore generally does not tax foreign-sourced income received by resident individuals, so Indian income is mostly taxed in India only.
🇩🇪NRI tax in Germany
Residents are taxed on worldwide income; Indian tax is credited under the treaty. Indian mutual fund gains and dividends are declared in the annual return.
🇳🇱NRI tax in Netherlands
Indian savings and investments fall into Box 3, taxed on a deemed return on the 1 January value rather than on actual income.
🇫🇷NRI tax in France
Worldwide income is taxed in France, and every Indian bank or demat account must be declared each year (form 3916).
🇮🇹NRI tax in Italy
Indian financial assets attract IVAFE and Indian property attracts IVIE, both declared in the RW section of the Italian return.
🇪🇸NRI tax in Spain
Indian assets above €50,000 per category are disclosed on Modelo 720. Workers under the Beckham regime are taxed mainly on Spanish-source income.
🇧🇪NRI tax in Belgium
Residents are taxed on worldwide income, and Indian bank accounts must be reported to the Central Point of Contact of the National Bank of Belgium.
🇸🇪NRI tax in Sweden
Worldwide income is taxed in Sweden with credit for Indian tax; Indian holdings are declared in the annual return.
🇨🇭NRI tax in Switzerland
Worldwide income is taxed, and Indian assets count towards the cantonal wealth tax.
🇮🇪NRI tax in Ireland
Irish-domiciled residents are taxed on worldwide income; non-domiciled residents are taxed on Indian income only when it is remitted to Ireland.
🇯🇵NRI tax in Japan
Non-permanent residents (resident under 5 of the last 10 years) are taxed on Indian income only to the extent it is paid in or remitted to Japan; after that, on worldwide income.
🇭🇰NRI tax in Hong Kong
Hong Kong taxes on a territorial basis, so Indian-source income is generally not taxed there.
🇸🇦NRI tax in Saudi Arabia
No personal income tax on salaries, so Indian tax on Indian income is usually final.
🇳🇿NRI tax in New Zealand
Indian shares and funds costing more than NZ$50,000 in total fall under the FIF rules and are taxed on a deemed return.
🇶🇦Qatar NRI Guide →
800K+ Indian diaspora (LARGEST expat group in Qatar — Doha, Al Wakra, Al Khor). India-Qatar DTAA 10% TDS, ZERO personal income tax, 3-week/year end-of-service gratuity, QFC.
🇰🇼Kuwait NRI Guide →
1M+ Indian diaspora (Kuwait City, Hawalli, Salmiya) — substantial Kerala diaspora. India-Kuwait DTAA 10% TDS, ZERO personal income tax, gratuity 15/30 days per year, Kerala property focus.
🇧🇭Bahrain NRI Guide →
300K+ Indian diaspora (Manama, Muharraq, Riffa) — GCC's financial hub. India-Bahrain DTAA 10% TDS, ZERO personal income tax, gratuity 15/30 days, banking + finance opportunities.
🇴🇲Oman NRI Guide →
700K+ Indian diaspora (Muscat, Salalah, Sohar) — substantial Kerala community. India-Oman DTAA 10% interest / 12.5% dividend TDS, ZERO personal income tax, gratuity 15/30 days, Vision 2040 tech opportunities.
🇲🇺Mauritius NRI Guide →
900K+ Indo-Mauritians (~70% of population — Tamil, Telugu, Bihari, Marathi heritage). India-Mauritius DTAA 7.5% interest TDS (LOWEST IN ANY INDIA DTAA), GBC offshore business, post-2017 LOB clause.
You are resident if you spend 182 days or more in India in the financial year, or 60 days in the year plus 365 days over the previous four years. The 60-day test does not apply to Indian citizens leaving for employment abroad, and becomes 120 days for citizens or PIOs visiting India whose Indian income exceeds ₹15 lakh. If neither test is met, you are a non-resident and India taxes only your Indian income.
No. Interest on NRE and FCNR deposits is exempt for a non-resident. NRO interest is taxable, with TDS at 30% plus surcharge and cess unless you give the bank a Tax Residency Certificate and Form 10F to apply the treaty rate.
Yes if Indian income is above the basic exemption limit, if you had capital gains in India, or if you want a refund of excess TDS. NRIs file ITR-2 (ITR-3 with business income), cannot use ITR-1, and cannot claim the section 87A rebate.
Mutual funds, listed shares (through the Portfolio Investment Scheme), government securities, NPS and residential or commercial property are open to NRIs. NRIs cannot open a new PPF account (an existing one runs to maturity without extension) and cannot buy agricultural land, plantation property or a farmhouse.
Long-term gains (property held over 24 months) are taxed at 12.5% without indexation; the 20%-with-indexation option is only for resident individuals and HUFs. The buyer deducts TDS on the sale price, so many NRIs apply for a lower-deduction certificate before the sale or claim the excess back in their return.
Up to USD 1 million per financial year after tax, with Form 15CA filed online and, above ₹5 lakh, Form 15CB from a chartered accountant. NRE balances can be sent abroad without a limit.
You may qualify as Resident but Not Ordinarily Resident (RNOR) for up to two or three years, during which foreign income is still largely outside Indian tax. NRE accounts must be redesignated, and foreign-currency balances can move into an RFC account.
India has tax treaties with 90+ countries. Indian income is usually taxed in India first, and your country of residence gives a credit for the Indian tax. To get the lower treaty TDS rate in India, give the payer a Tax Residency Certificate, Form 10F and your PAN before the payment.
Richify tracks your Indian and foreign money in one app. Felix flags DTAA filing requirements, surfaces TDS refund opportunities, and helps decide RNOR utilisation during return.
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