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NRI investing

Tax-sheltered accounts where you live first, then the options in India, and the tax and currency points that link them.

Investor tending two growing investment branches rooted in Indian and overseas city landscapes

NRIWallah team

Updated September 2026

Living abroad gives you two sets of investment options, and two sets of tax rules to go with them. The right balance depends on where you live, whether you plan to return to India, and which currency you expect to spend in later.

Start where you live

The tax-sheltered accounts in your country of residence usually offer the quickest benefit, so fund them first.

In the UK, that means a workplace pension, where you should contribute at least enough to get your employer’s full match, and an ISA: up to £20,000 a year (2026-27) with no UK tax on the gains or income. A Lifetime ISA adds a 25% government bonus, up to £1,000 a year, for savers under 40 buying a first home or saving for retirement. Beyond the ISA, gains in an ordinary investment account above the £3,000 annual allowance are taxable.

In other countries the equivalents differ: a 401(k) and IRA in the US, an RRSP and TFSA in Canada, super in Australia. Our country hubs, such as the UK NRI hub , cover them.

Then India

  • NRE fixed deposits pay interest that is free of Indian tax, and both the money and the interest can be sent back abroad. Current rates are on our FD rates page . Your country of residence may still tax the interest.
  • FCNR deposits are held in a foreign currency such as dollars or pounds, so they carry no rupee risk if that is the currency you will spend.
  • Mutual funds. Gains on equity funds held for more than 12 months are taxed at 12.5% above ₹1.25 lakh a year; debt fund gains are taxed at your slab rate. ELSS funds qualify for section 80C, but only if you file under the old tax regime.
  • Shares. NRIs buy and sell Indian shares through a Portfolio Investment Scheme account linked to their NRE or NRO account, and cannot trade intraday. Our broker comparison covers which brokers accept NRIs from each country.
  • NPS. A low-cost pension scheme open to NRIs and OCI cardholders. At retirement, private-sector subscribers can take up to 80% as a lump sum, of which 60% is tax-free, and must use the rest to buy an annuity.

Two things to plan for

Tax in both countries. Most countries NRIs live in tax their residents on Indian investment income too. The tax treaty between India and your country stops the same income being taxed twice, but only if you claim the relief when you file.

Currency. If the rupee weakens against the currency you will eventually spend, your Indian returns shrink when you convert them. Holding investments in both currencies, and investing regularly rather than trying to time the exchange rate, softens the effect.

Before moving money between countries, compare the cost on our INR converter .

This is general information, not financial advice. For decisions about your own situation, speak to a qualified adviser.

Common questions

Yes, after completing KYC as an NRI and investing through your NRE or NRO account. Some fund houses refuse investors living in the US or Canada because of the extra reporting those countries require. Check our AMC eligibility checker before you invest.
You can keep a PPF account opened while you were resident and contribute until it matures, but you cannot extend it beyond maturity or open a new one as an NRI.
Yes. Indian citizens living abroad can join the National Pension System, and since October 2019 so can OCI cardholders. Contributions come from an NRE or NRO account.
Yes, residential and commercial property, paid for from an NRE, NRO or FCNR account or by money sent from abroad. NRIs cannot buy agricultural land, plantations or farmhouses. How much of the sale proceeds you can later send abroad depends on how the purchase was funded.
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