There’s an important change that non-resident Indians must be aware of what could impact their tax situations. With the passing of India’s Finance Bill 2021, individuals deemed as high-net-worth that are based in India and who have business interests in other countries such as Qatar and the UAE, may face the possibility of taxation on the earnings they accumulate overseas. Those that hold Overseas Citizenship of India (OCI) should be aware of the short- and long-term impacts.
Who It Affects
This sweeping amendment will force many investment-rich people to seek out new opportunities and paths to protect their wealth and future. In its current form, the Overseas Citizenship of India status can be applied for and granted to people of Indian descent. This particular status works similarly to a dual citizenship.
The presentation of the India 2021 Union Budget laid out three amendments to its tax regime that will directly affect non-resident Indians (NRIs). These amendments in their current form could have an impact on NRIs. Unlike before, NRI’s residing in the tax-affected jurisdictions would be taxed in India on their previously tax-free income. This change has spurred some Indian investors to pivot from their previous areas of investment and look to the Caribbean for alternative routes to second citizenship. Most notably, Grenada’s Citizenship by Investment Program, the most sought-after CBI program which welcomes a steady new population of Indian businesspeople.
What Are The Options
NRIs (Non-Resident Indians) are concerned about extraterritorial taxation on their global income. One option is that they are seeking Grenada citizenship, which allows them to then obtain an Overseas Citizenship of India (OCI) card. An OCI card holder retains a lot of rights as an Indian citizen including the right to live and work in India permanently The difference being that it is not a citizenship, and holders have some civic responsibilities relinquished, such as voting in the country.
What Are The Benefits
This Citizenship by Investment opportunity has witnessed a global surge in the last few years. Traditionally, this option has been leveraged by wealthy investors from the EU and the United States but high-wealth individuals from emerging markets have also discovered the second investment citizenship.
Along with the benefit of hedging against increased taxes and other political challenges that second citizenship provides, investors and their families having obtained Grenada citizenship, have the option to apply for residency and set up a business in the United States within around six weeks through the E2 visa program.
Citizens of Indian descent are finding the opportunity to contribute in a constructive way to the economic growth of the island of Grenada along with other islands in the Caribbean. Recently enhanced, the Grenada second citizenship program has been drawing high net-worth individuals and their families to become citizens of the islands through investment in hospitality and tourism projects.
Indian investors that apply for second citizenship via citizenship by investment program of Grenada can gain access to a wealth of advantages, which includes the ability to more than 140 countries and territories, the right to live and work in their second nation, along with a variety of tax benefits, and the ability to pass citizenship down through their families. An additional incentive is an option to apply for an E-2 visa of the USA that provides Grenada citizens with access to the globe’s largest economy and some of the world’s greatest education institutions can be had.
Summary
The past year has brought to light an increasing number of governments that are amending or adopting rules around wealth and citizenship-based taxation. Therefore, it has become even more important to identify financial opportunities that will protect your current and future wealth. Citizenship by Investment continues to be one of the most beneficial options available.