NRIs in Singapore: Investing in Indian Red Sandalwood
Singapore’s territorial tax system and no capital-gains tax make its picture distinctive, but FEMA still governs the land itself.
Published 2024-10-22, Updated 2026-07-05, By Shree Editorial Desk
Quick answerSingapore-based NRIs face a comparatively favourable home-tax picture: Singapore operates a broadly territorial tax system, generally does not tax most foreign-sourced income not received in Singapore, and has no capital-gains tax. The India to Singapore treaty coordinates taxing rights. But the land itself is still governed by India’s FEMA restriction, which applies regardless of how favourable Singapore’s tax treatment is. This article outlines what Singapore-based investors should weigh, keeping the honest FEMA-first framing; it is general information, not advice.
FEMA first
However favourable Singapore’s tax treatment, the land is governed by FEMA: NRIs and OCIs generally cannot directly purchase Indian agricultural land. Start there, with independent advice on any pathway.
Your Singapore tax layer
Singapore’s broadly territorial system generally does not tax most foreign income not received there.
Singapore has no capital-gains tax.
The India to Singapore DTAA coordinates taxing rights.
India side and repatriation
Indian-source income remains taxable in India (often via TDS); repatriation runs through NRO, generally up to USD 1 million per financial year with Form 15CA/CB.
Next steps
Even with a simpler home-tax picture, confirm FEMA eligibility and plan the India side. Book an NRI consultation; see the NRI hub.
SH
Shree Editorial Desk
Shree Properties & Projects, editorial
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