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India introduces citizenship based taxation

Like others governments facing revenue shortfalls, India has just recently introduced citizenship-based taxation.

Henceforth, Indian nationals, irrespective of physical presence in India, will be deemed to be tax residents in certain circumstances. Although India is still quite flexible in terms of application, the fact remains that the tax system is slowly moving towards obtaining additional revenues from those living and working abroad. Indian citizens should expect that matters will only get worse.

Governments rarely lessen the tax burden. As such, one should start thinking about permanent residency and alternative citizenship solutions as an important vertical in their Indian related tax planning.

The Portuguese Golden Visa program is a very good option for it can help one tie permanent residency to tax residency.

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