India has recently implemented citizenship-based taxation, marking a significant shift in its tax approach. Under this new system, Indian nationals are now considered tax residents regardless of their physical location within India under certain conditions.

While India’s current application remains relatively flexible, the trajectory is clear: the tax system is slowly moving towards obtaining additional revenues from those living and working abroad. This development signals that Indian citizens abroad should anticipate increasingly stringent tax requirements.

Proactive tax planning is advisable, including exploring permanent residency and alternative citizenship solutions. The Portuguese Golden Visa program presents a viable option for linking permanent residency to favorable tax residency status.

The underlying message reflects a broader governmental trend: tax burdens typically expand rather than diminish over time.