Indians owning foreign property adjust to new global tax rules
What's the story
India's high-net-worth individuals (HNIs) owning foreign properties are looking for ways to meet the new automatic exchange framework of the Organization for Economic Co-operation and Development (OECD). The framework, if accepted, will give Indian tax authorities unprecedented access to foreign real estate from 2029. It expands global tax transparency to immovable property, an asset class previously untouched by automatic exchange mechanisms like the Common Reporting Standard (CRS).
Revenue impact
OECD framework could boost tax revenue
The OECD's Tax Transparency in Asia Report 2025, shows that member jurisdictions have identified at least €24 billion in additional revenue through exchange-of-information mechanisms between 2009 and 2024. In 2024 alone, €1.9 billion was identified. India has been a strong proponent of expanding CRS to include non-financial assets like real estate under automatic exchange among the 38-member OECD during its G20 presidency.
Compliance challenges
Framework's implications for Indian residents
The new framework has major implications for Indian residents owning properties abroad through companies, trusts, or special purpose vehicles (SPVs). Rishabh Shroff, partner and co-head (private client) at Cyril Amarchand Mangaldas, said this is a major shift for globally mobile Indian families. He added structures that once insulated overseas real estate, like SPVs and layered trusts, will now come under direct scrutiny due to India's residency-based tax system and reporting rules under the Foreign Exchange Management Act.
Strategic shift
Wealthy families pivot toward business-driven residency options
The tightening of property-led residency regimes abroad has already made wealthy families move away from traditional real estate-linked pathways. Shroff said Indian HNIs are now moving toward business, fund, and donation-driven residency options that offer substance without the disclosure fragility of 'pure' direct real-estate acquisition. This strategic shift is also impacting investment-linked migration decisions.
Investor impact
Automatic exchange impacts property-led golden visa investors
Rajneesh Pathak, founder of Global North Residency & Citizenship, said property-led Golden Visa investors rely heavily on real estate investment for residency eligibility. He added that automatic exchange means every detail, acquisition price, financing, rental income, beneficial ownership, will be shared with Indian authorities. Many clients who used property as a 'quiet' asset diversification tool are now re-evaluating and improving their documentation and reporting in response to these changes.
Risk assessment
Compliance risks for families with complex holding structures
Gopal Kumar, founder of borderless.VIP, said compliance risks are higher for families with complex holding structures. He warned challenges arise when either the source of funds or the property itself has not been properly declared. Layered SPVs and multi-jurisdictional ownership structures would face greater scrutiny as beneficial ownership and income details become visible under this new framework.