Living in London for eight years, Priya wanted to invest her savings back home. She tried NRE FDs but lost money every year to rupee depreciation. When she discovered GIFT City, everything changed.
If you're a UK-based NRI wondering how to protect your hard-earned pounds while investing in India, this guide walks you through each step.
What Makes GIFT City Different for UK NRIs?
GIFT City (Gujarat International Finance Tec-City) operates as India's first International Financial Services Centre. Think of it as Singapore within India-a special zone where your investments work in foreign currencies.
For UK NRIs, this means three big wins:
Your money stays in GBP or USD. No forced conversion to rupees. Interest income from GIFT City fixed deposits is tax-free in India. And the India-UK DTAA helps you claim credits on UK taxes.
👉 Tip: Since April 2025, UK's non-dom rules changed. Your worldwide income is now taxable. GIFT City's tax-free interest becomes even more valuable-check with your UK tax advisor on how to optimise.
Step 1: Confirm Your NRI Status
Before anything else, verify your residential status. You qualify as an NRI if you've lived outside India for employment or business purposes.
Most UK-based Indians meet this criterion easily. But if you travel between both countries frequently, use our Residential Status Calculator to confirm.
Your status determines which accounts you can open and how your income gets taxed in India.
Step 2: Gather Your Documents
GIFT City banks have simplified KYC for NRIs. You'll need:
Document | Details |
|---|---|
Valid Passport | Indian passport with valid UK visa |
UK Address Proof | Utility bill or bank statement (last 3 months) |
PAN Card | Optional for some banks, but recommended |
UK Tax Residency Certificate | Get this from HMRC (takes 6-8 weeks) |
Passport-size Photos | Recent photographs |
Good news: Many banks now offer video KYC. No need to fly to Gujarat.
👉 Tip: Apply for your Tax Residency Certificate from HMRC before the financial year begins. This document is essential for claiming DTAA benefits later.
Step 3: Choose Your GIFT City Bank
Several Indian banks operate IFSC Banking Units (IBUs) in GIFT City. SBI, HDFC Bank, ICICI Bank, and Axis Bank all have branches there.
Each offers accounts in GBP, USD, EUR, and other major currencies.
Compare interest rates across banks before deciding. Our NRI FD Comparison Tool shows current rates from all major GIFT City banks in one place.
Step 4: Open Your GIFT City Account
Contact your chosen bank's IBU branch directly or apply online through their website. The process typically takes 3-5 business days.
You have two main options:
Global Savings Account: For parking surplus funds in GBP or USD. Works like a regular savings account but in foreign currency.
Fixed Deposits: Lock in your money for better returns. Tenures range from 7 days to 39 months depending on the bank.
Unlike FCNR deposits which require minimum 1-year tenure, GIFT City FDs offer shorter options too. Compare how these stack up in our GIFT City FD vs FCNR guide.
Step 5: Transfer Funds and Start Investing
Wire your GBP or USD directly from your UK bank account to your GIFT City account. No conversion to rupees needed.
Your investment options include:
Fixed Deposits: The safest choice. Earn 4-5% annually in USD with zero TDS in India. Check current rates on best NRI FD rates.
Alternative Investment Funds (AIFs): For higher returns. Minimum investment is now USD 75,000 (reduced from USD 150,000 in February 2025). Explore options through our GIFT City AIFs tool.
Portfolio Management Services: Tailored investing for amounts above USD 150,000. Professional fund managers handle your money.
👉 Tip: New to GIFT City investing? Start with fixed deposits to understand how the system works. Graduate to AIFs later when you're comfortable.
Tax Benefits for UK NRIs
Here's where GIFT City shines for British Indians:
In India: Interest income from GIFT City deposits is completely tax-free. No TDS, no filing complications.
In the UK: Under the India-UK DTAA, you can claim tax credits for any Indian taxes paid. Since GIFT City interest has zero Indian tax, you'll only pay UK tax once.
The India-UK DTAA also caps dividend taxation at 10% and interest income at 15%-lower than standard rates.
Keep your TRC and Form 10F ready when filing your returns. These documents prove your UK residency and unlock treaty benefits.
What About Repatriating Your Money?
This is where many NRIs get stuck with traditional NRE or NRO accounts.
GIFT City makes repatriation simple. Since transactions happen in foreign currency, you enjoy 100% repatriation without restrictions. No Form 15CA or 15CB headaches for most transactions.
Your money stays liquid and accessible-whether you need it in the UK or plan to return to India someday.
Quick Comparison: GIFT City vs Traditional NRI Deposits
Feature | GIFT City FD | NRE FD | FCNR |
|---|---|---|---|
Currency | GBP/USD/EUR | INR | USD/GBP/EUR |
Minimum Tenure | 7 days | 1 year | 1 year |
TDS in India | Nil | Nil | Nil |
Currency Risk | None | High | None |
Repatriation | 100% free | 100% free | 100% free |
Your Next Step
GIFT City offers UK NRIs something rare: tax-efficient, currency-protected investments in India without the usual compliance maze.
I've helped hundreds of NRIs navigate this journey through Belong. Our team at Belong-Savitri, Sai, and I-built tools specifically for situations like yours.
Start by comparing current GIFT City FD rates across all banks. Then join our WhatsApp community where UK NRIs share their experiences and ask questions.
Ready to get started? Download the Belong app to explore USD fixed deposits and track your investments in one place.
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