Can joint NRI account holders invest in GIFT City?

"My wife and I both work in Dubai. Can we open a joint GIFT City account and invest together?"

We get this question often in our Belong WhatsApp community. The answer is yes, but with conditions that most articles skip over.

GIFT City IFSC allows joint accounts. Banks like ICICI, HDFC, and Kotak offer joint holder and nomination facilities on their IBU accounts (Source: ICICI Bank GIFT City FAQs, Kotak Bank GIFT City page).

But who can be a joint holder, and what happens to your tax-free benefits when you add someone?

That depends entirely on the residential status of each holder.

Two NRIs Holding Jointly: The Simplest Case

When both holders are NRIs, this works smoothly.

You and your spouse, sibling, or parent (who is also an NRI) can open a joint GIFT City savings account or place a joint FD in foreign currency.

Both holders complete KYC separately.

Both need a passport, overseas address proof, and PAN card. Video KYC is available for UAE, US, UK, Canada, and other FATF-compliant countries (Source: IFSCA guidelines).

The tax treatment stays clean. Interest on GIFT City FDs remains tax-free in India under Section 10(4E) of the Income Tax Act because both holders are non-residents.

For UAE-based NRI couples, this means zero tax on either side, thanks to India-UAE DTAA.

👉 Tip:Compare GIFT City FD rates across banks before opening a joint account. Some banks offer better rates for higher deposit amounts, which joint funding can help you reach.

NRI + Resident Indian: Where It Gets Complicated

Can you add your resident parent or sibling to a GIFT City account? Generally, no.

GIFT City operates as a "non-resident zone" under FEMA. IFSC accounts are designed for non-residents.

Joint accounts with resident Indians are usually restricted to maintain the foreign currency integrity of the zone (Source: Kalviro Ventures GIFT City Guide, 2025).

This is fundamentally different from NRE or NRO accounts in mainland India.

With an NRO account, you can add a resident close relative as a joint holder on a "former or survivor" basis (Source: RBI Master Direction on NRI accounts). But that option doesn't extend to GIFT City.

If you want your resident parents to benefit from your GIFT City investments, a better approach is to invest in your name and nominate them as beneficiaries.

Nomination facilities are available on both savings accounts and FDs at GIFT City IBUs (Source: ICICI Bank GIFT City FAQs).

👉 Tip: Explore our guide on how to invest in GIFT City jointly with parents for detailed strategies that work within FEMA rules.

What About Mutual Funds and AIFs?

GIFT City mutual funds and AIFs are individual investments. You invest in your own name after completing KYC. There's no "joint mutual fund account" concept here, the same way it works with offshore funds globally.

If both spouses want exposure to GIFT City mutual funds, each person invests individually.

This actually works in your favour for diversification. One spouse could invest in the Tata India Dynamic Equity Fund (starting at $500, Source: Business Standard, September 2025), while the other picks a different fund or a USD FD.

For AIFs, the minimum investment dropped from $150,000 to $75,000 per investor in February 2025 (Source: IFSCA circular, February 2025). That's per person. A couple investing separately gets double the exposure.

👉 Tip: Track available GIFT City fund options on Belong's mutual funds explorer to decide how to split investments between joint account holders.

The "Former or Survivor" Rule Explained

Even where GIFT City allows joint accounts (NRI + NRI), understand the operating rules. Most GIFT City IBUs follow the "either or survivor" or "former or survivor" model.

"Either or survivor" means both holders can independently operate the account. If one passes away, the survivor gets full access. "Former or survivor" means only the primary holder operates during their lifetime.

The operating mode matters for couples. If both of you want active access, confirm your bank offers "either or survivor" on GIFT City joint accounts during the account opening process.

Tax Filing for Joint GIFT City Accounts

Interest income from a joint GIFT City FD is typically taxed in the hands of the primary holder. Since GIFT City FD interest is tax-free in India for NRIs under Section 10(4E), this isn't a concern domestically.

UAE has no personal income tax either, so joint GIFT City income faces zero tax from both sides.

For NRIs in the UK or US, each country has specific rules on how joint account income is reported. UK NRIs split it based on ownership share.

US NRIs may need to report the full balance on FBAR if aggregate foreign accounts exceed $10,000 (Source: US Treasury, FinCEN).

👉 Tip: Use Belong's GIFT Nifty tracker to monitor market conditions, and check our DTAA benefits guide to understand how joint income is treated under tax treaties.

Family Investment Funds: The Advanced Option

For NRI families pooling larger amounts, GIFT City offers Family Investment Funds. IFSCA permits these structures for succession planning and consolidated wealth management (Source: Zerodha Z-Connect GIFT City Guide).

These are professionally managed, relevant if your family wants to invest $150,000+ collectively with a clear legal framework.

The Bottom Line

Two NRIs can hold GIFT City accounts jointly without issues. NRI + resident combinations are generally restricted. Mutual funds and AIFs are always individual.

For UAE-based NRI couples, the winning strategy: open a joint savings account for parking funds, place joint FDs for safe, tax-free returns, and invest individually in mutual funds for growth.

Thousands of NRI families manage GIFT City investments through Belong. Download the app to compare FD rates, explore fund options, and join our WhatsApp community where couples and families share real experiences.