Gujarat International Finance Tec-City
GIFT CITY
India's first operational International Financial Services Centre (IFSC), envisioned as a world-class hub for international and domestic financial services. Gift City is designed to rival leading global financial centres, offering a seamless ecosystem for cross-border investments, innovative fund structuring, capital market activities, and global asset management.
Why Invest Through
GIFT CITY?
Tax-Efficient Gains Structures
GIFT City offers a highly favorable tax regime: zero capital gains tax on certain listed securities, no dividend distribution tax, and relief from Goods and Services Tax (GST), Securities Transaction Tax (STT), Commodity Transaction Tax (CTT), and stamp-duty.
Attractive Tax Rates for NRIs
Dividend income is taxed at a concessional 10% (much lower than the ~20% in mainland India), and capital gains on IFSC-listed shares and derivatives are taxed at just 9%.
Flexible Currency Options - USD and More
Investors can transact in major global currencies like USD, GBP, EUR, AED, etc., avoiding forced INR conversions, protecting against rupee depreciation, and easing remittances.
Efficient Repatriation & Regulatory Ease
GIFT City investments are fully repatriable with minimal regulatory friction under the RBI's LRS (USD 250,000 per financial year) for Resident Investors, and many funds don't require NRE/NRO accounts from NRI investors.
Unified Regulatory Environment & Global Accessibility
Operating under IFSCA, GIFT City simplifies cross-border investing through a unified, investor-friendly framework—reducing document hassles, easy onboarding, and enabling access from jurisdictions like the US, UK, UAE, Singapore, etc.
Global Tax Transparency Compliance
All investment vehicles in GIFT City adhere to FATCA, CRS, and OECD standards, ensuring international tax reporting compliance and avoiding cross-border regulatory hurdles.
GIFT CITY
Inbound Funds
Structures that pool capital from foreign and NRI investors for deployment into Indian assets, including equity, debt, and alternative strategies
Outbound Funds
Vehicles that enable Indian, NRI and global investors to access international markets, providing exposure to global equities, fixed income, and alternative opportunities.
Feeder Funds
Funds that channel offshore or onshore capital into larger master funds, Whether India-focused or Funds Incorporated outside India for investing in overseas markets, also to simplify cross-border investment flows.PMS (Portfolio Management Services)
Customised discretionary, non-discretionary or advisory portfolio solutions for both resident, non-resident and global investors, managed from GIFT IFSC.Retail Mutual Funds
Schemes accessible to a broader investor base, allowing participation in professionally managed funds across asset classes and geographies at a lower minimum investment sizeCategory I AIF
This fund will make Investments in start-ups or social ventures or SMEs or infrastructure or other sectors / areas considered as socially or economically desirable.
Category III AIF
Category III AIF will make Investments by undertaking diverse or complex trading strategies, invest in listed or unlisted derivatives and for permitted investments under longevity finance.
Category II AIF
A Category II AIF in GIFT City is a privately pooled investment vehicle, typically for private equity, debt, or fund-of-funds strategies, regulated by IFSCA.
Venture Capital Schemes
These Vehicle is used to facilitate investments in start-ups and early-stage ventures.
Special Situation Funds (SSFs)
SSFs in GIFT City invests in stressed or distressed assets, including loans, equity of stressed companies, and assets under insolvency proceedings.
Products And Opportunities
Management Services include:
Who Should Consider GIFT CITY Funds?
Non-Resident Indians (NRIs), Overseas Citizens
of India (OCIs), and Persons of Indian Origin (PIOs)
Ideal for individuals seeking a regulated, tax-efficient route to build globally diversified portfolios, with the flexibility to invest in both Indian and international markets.
Resident High-Net-Worth Individuals
(HNIs)
Perfect for those wanting to allocate wealth into USD or other foreign currency-denominated assets while maintaining full regulatory compliance and ease of repatriation.
Family Offices
Suitable for multi-generational wealth planning, allowing access to cross-border asset classes, alternative investments, and tailored portfolio strategies from a single jurisdiction.
Foreign Portfolio Investors
(FPIs)
Streamlined access to Indian equity, debt, and alternative assets through simplified onboarding, unified regulation, and competitive taxation under IFSCA rules.
Institutional Investors
Benefiting from international-standard governance, risk management, and operational efficiency while accessing emerging and developed market opportunities.
Taxation On
GIFT CITY Funds
AIF
AIFs are broadly classified into three categories - Category I AIFs are AIFs invest primarily in unlisted securities, while Category II AIFs and Retail Schemes invest primarily in listed securities.
Category I and II AIFs offer a "pass through" tax structure, meaning most income (excluding business income) is taxed directly in the hands of the investor, as if the investments were made directly by them. Foreign investors can also avail benefits under the applicable tax treaty when determining the taxability of such income.
For Category II AIFs and Retail Schemes, the tax benefits for global & NRI investors outside India are particularly attractive:
- Capital gains on most securities - excluding shares of Indian companies - such as bonds, debentures, derivatives, foreign securities, and those listed on GIFT IFSC exchanges, are entirely exempt from tax, consistent with many favorable tax treaties
- Dividend and interest income from Indian investments is taxed at a concessional 10% rate.
- Income from foreign securities is fully tax-exempt.
PMS
Taxation on Portfolio Management Services (PMS) in GIFT City depends on the investor's residency status. For non-resident investors (NRIs or foreign investors), PMS income from investments deployed outside India is fully exempt from Indian tax, with no GST liability, and they also enjoy exemptions from stamp duty and Securities Transaction Tax (STT).
For resident Indian investors, PMS investments in GIFT City are taxed in the same manner as if the investments were made directly - long term gains attract capital gains tax, short-term gains are taxed as per applicable income tax provisions, and dividends are also taxable in the hands of the investor along with applicable surcharge and cess.
Before You Invest
GIFT CITY
Fund Checklist
Strong
Regulations & Compliance
- All Investment funds must register with IFSCA (AIFs, PMSes, FPIs)
- AIFs require Private Placement Memorandum (PPM)
- KYC norms aligned with AML guidelines.
- Quarterly reporting of fund flows (inward and outward) by Asset Managers.
- Category III AIFs must disclose leverage and risk levels.
Frequently Asked Questions (Faqs) On
GIFT CITY Funds
NRI’s in GIFT City funds enjoy several tax advantages:
- Capital gains are exempt for Category I and II AIFs (Subject to Specific Provisions)
- Interest income from IFSC entities is tax-free
- Dividend withholding tax is capped at 10%
- No Securities Transaction Tax (STT) on securities listed in GIFT IFSC.
As with any investment, GIFT City funds carry risks:
- Lock-in periods may be 3–7+ years
- Currency Volatility Risks.
- Strategy complexity and valuation uncertainty (especially for private or global assets) Investors should review the Private Placement Memorandum (PPM) carefully and consult a qualified adviser before investing
Investments in GIFT City funds are subject to market risks. Please read the offer document or PPM carefully before investing.