# GIFT City Benefits for NRIs, Startups and Resident Indians
Author: Ankur Choudhary
Author URL: https://getbelong.com/blog/author/ankur-choudhary/
Published: 2025-03-27
Category: GIFT City Guide
Category URL: https://getbelong.com/blog/category/gift-city-guide/
Meta Title: GIFT City Benefits for NRIs: Tax Savings & Investments – Belong
Meta Description: Explore GIFT City’s benefits for NRIs, from tax savings to global investment opportunities. A complete guide to India’s top financial hub.
Tags: Gift City Guide, NRIs, GIFT City
Tag URLs: Gift City Guide (https://getbelong.com/blog/tag/gift-city-guide/), NRIs (https://getbelong.com/blog/tag/nris/), GIFT City (https://getbelong.com/blog/tag/gift-city/)
URL: https://getbelong.com/blog/gift-city-benefits-for-nris/
## Introduction
Riding the tide of the Indian growth story, GIFT City is a government initiative to bring this momentum to the world. Under the regulation of the International Financial Services Centres Authority (IFSCA), this off-shore special economic zone has been growing in volume of transactions and number of companies working out of GIFT city. It has successfully managed to entice businesses, global investors, resident Indians and even startups with its diverse benefits.
## **Benefits of GIFT City**
- **Non-INR currencies:** Since GIFT City is considered to be an off-shore entity, it accepts all currencies, excluding the Indian rupee. This has enabled businesses operating out of GIFT City to transact in foreign currencies, making it the easiest way for Indian enterprises to engage with an international customer base.
- **Sustainable infrastructure:** GIFT City holds an IGBC (Indian Green Building Council) Gold Rating, reflecting its sustainable initiative. The well-planned city features state-of-the-art commercial and mixed-use spaces, high-speed connectivity, underground utilities, power reliability, and much more, ensuring the city meets global standards.
- **Ease of doing business:** As can be seen from the 2025 FY budget, the government has simplified regulations, reduced compliance burdens, and extended supportive policies to attract investment and business impetus. Not only does it signal a strong government interest but also a commitment to foster a competitive playground.
- **Diverse sectors:** Although it is a financial SEZ, GIFT City not only accommodates banking, insurance, capital markets, and fintech but also requires ancillary services like consulting, legal, accounting, and much more.
_Explore investment, career, and infrastructure opportunities in [GIFT City Gandhinagar](https://getbelong.com/blog/gift-city-india/)._
## GIFT City Benefits for NRIs
Gift City has several benefits for NRIs, such as:
### **FD benefits:**
Not only are most GIFT City FDs USD denominated, but they also offer a higher rate of returns. They are like FCNR deposits but better. Unlike FCNR deposits, which have a minimum tenure of 1 year, GIFT city deposits have tenures of just 7 days. Also, if prematurely withdrawn, the investor doesn’t lose the entire interest in a GIFT city deposit compared to FCNR deposits.
### **Easy repatriation:**
Another pain point NRIs encounter when making any sort of investment in India is repatriation. Not only is the regulation around it complex, but most of the time, either an NRO or NRE account is required. GIFT City solves these problems by ensuring the complete repatriation of funds to the individual's foreign bank account.
### **Tax benefits:**
Fixed deposits booked in GIFT City IFSC and investments made in Cat-3 AIFs investing in Indian equities are tax free in India. Transactions on GIFT City exchanges (India INX and NSE IX) are exempted from Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), and stamp duty. The capital gains from trade in GIFT City exchanges are tax free. Returns from ULIPs and endowment plans are tax free given that the premium amount does not exceed 10% of the amount insured. However, the taxes on income may apply based on the country into which they are repatriated.
**Also Read**:
- [Gift City Career](https://getbelong.com/blog/gift-city-careers-and-jobs/)
- [IFSC Banking Unit Gift City](https://getbelong.com/blog/gift-city-ifsc/)
- [Nri Investment In Gift City](https://getbelong.com/blog/gift-city-investments/)
### **Investment diversification:**
NRIs can invest in a variety of financial products via GIFT City. The list includes fixed deposits, international stocks, derivative instruments and even REITs. The process of listing Indian companies on IFSC stock exchanges is underway. This will give global participants access to primary Indian markets.
### **Government support:**
The Indian government is actively promoting GIFT City. With the aim of making it a global financial hub, the government has been rendering favourable policies and incentives. The Union budget of 2025 gave tax exemption on maturity proceeds from dollar-denominated insurance policies sold via GIFT City. There is no upper limit on the premium amount, and the amount should not exceed 10% of the sum insured. There is also continuous monitoring and revamping of the rules to ensure GIFT City meets international standards.
_Explore the leading [It Companies In Gandhinagar Gift City](https://getbelong.com/blog/gift-city-companies/) driving innovation in India's premier financial hub._
## GIFT City Benefits for Startups
- **Access to Global Markets:** GIFT City helps startups that aim to serve a global clientele jump a few squares and directly reach their target group. It is especially becoming a hub for fintech startups.
- **GST Exemptions:** GIFT City companies are exempt from 100% corporate tax for 10 consecutive years out of the first 15 years of operation. They are also not liable to pay GST or dividend distribution tax. Only certain companies that have opted for the old tax regime and required to pay a 9% minimum alternate tax.
- **Tax Deadlines:** With the 2025 FY budget, the government has extended the deadline for companies to commence operations until March 2030 to qualify for tax benefits.
**Also Read**:
- [World Trade Center GIFT City](https://getbelong.com/blog/world-trade-center-gift-city/)
- [GIFT City Future Plan](https://getbelong.com/blog/gift-city-future-plans/)
- [Benefits of IFSC in GIFT City](https://getbelong.com/blog/gift-city-ifsc/)
## **GIFT City Benefits for Resident Indians**
- **Job opportunities:** GIFT City offers an ideal work environment that provides exposure to the global markets without moving abroad. There are many banking, financial services, fund management, fintech, IT, ITeS, aircraft leasing, ship leasing, and other ancillary services openings. The listings are available on the GIFT City website and other job portals like Naukri, LinkedIn, Indeed, etc.
- **Indian companies:** Indian companies looking to onboard foreign investors can now list on IFSC stock exchanges. This provides direct access to global capital and a broader investor base. As of March 2025, the exchanges are working on the regulations to enable Indian companies to list on both Indian and international exchanges.
- **Real estate appreciation:** Being India's first operational smart city, the modern infrastructure and connectivity have made it an attractive location for real estate investment. Buildings like the World Trade Centre GIFT City have contributed significantly to the appreciation of real estate.
- **Strategic location:** Living in GIFT City comes with plenty of perks. It is strategically located near Ahmedabad and Gandhinagar, ensures seamless connectivity via Metro and an expanding bus network, and provides access to **India’s only international universities, such as Deakin University and the University** **of Wollongong.**
_You can read more about [top universities in GIFT City](https://getbelong.com/blog/universities-in-gift-city/) here._
## GIFT City vs. Other Major Financial Hubs
Criteria
GIFT City (India)
DIFC (Dubai)
Singapore
Hong Kong
Regulatory body
International Financial Services Centres Authority (IFSCA)
Dubai Financial Services Authority (DFSA)
Monetary Authority of Singapore (MAS)
Hong Kong Monetary Authority (HKMA)
Taxation
100% corporate tax exemption for any 10 consecutive years out of a 15-year period
0% corporate tax in the DIFC free zone
Corporate tax is at 17% on income sourced in Singapore
Corporate tax of 8.25% tax on profits up to HKD 2 million and 16.5% on profits exceeding that on income sourced in Hong Kong
Businesses
550+ entities, mostly in banking, insurance, IT, fintech and consulting
6,000+ companies, mostly in banking, financial management, insurance, family offices, fintech and AI
3,000+ financial institutions, mostly in banking, financial advisory, capital markets and insurance
4,000+ start-ups. Attractive IPO market. Also prominent in banking, insurance and fintech
Salient numbers
Banking assets ~ $78 billion
AUM ~ $700 billion
Stock Market cap ~ $640 billion
Stock Market cap ~ $ 4.5 trillion
## Conclusion
GIFT City is progressing rapidly to establish itself as a global financial hub. Despite the benefits, it is important to keep in mind that GIFT City is still at a very nascent stage with some uncertainties along the way. Whether you're a startup, NRI, investor, or professional, GIFT City presents an attractive opportunity for financial growth and global connectivity.
## Other Gift City Blogs
Related blogs
[Gift City Club Membership Fees Price](https://getbelong.com/blog/gift-city-club-membership/)
[Gift City SEZ Benefits](https://getbelong.com/blog/gift-city-sez/)
[Gift City Companies](https://getbelong.com/blog/gift-city-companies/)
[Gift City Banks](https://getbelong.com/blog/gift-city-banks/)
## FAQs
Q: Is GIFT City beneficial for NRIs?
A: Yes, with high interest rates, easy repatriation, tax benefits, and access to international markets, GIFT City is a very NRI-friendly jurisdiction. There is no need for an NRO or NRE account either.
Q: What are the tax benefits of GIFT City?
A: Companies receive a 100% tax exemption for 10 out of 15 years. There is no Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) or Goods and Service Tax (GST). Other taxes are also much lower than in India.
Q: How does GIFT City support startups?
A: GIFT City provides GST exemptions, international market access, and an extended deadline for tax benefits until 2030. Moreover, it also opened up a world of opportunities for exploration and development.
Q: Why is GIFT City a good place to invest?
A: GIFT City offers tax efficiency, strong government support, modern infrastructure, and access to growing financial markets. This has made it a one-stop shop for all types of investments.
Q: What industries thrive in GIFT City?
A: Currently, banking, fintech, insurance, asset management, capital markets, IT, and consulting services are rapidly progressing in GIFT City. With the rapid development, new industries will also be in demand.
---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---