Best International Jurisdictions to Invest in India for Global Investors

Published Mon, 04 Aug 2025 | Updated Mon, 04 Aug 2025 International taxation

India’s rapidly growing economy, expanding middle class, and government initiatives like Make in India, Digital India, and PLI (Production Linked Incentive) Schemes have made it a prime destination for global investors.

The best international jurisdictions to invest in India rely on factors like Double Taxation Avoidance Agreements (DTAAs), ease of doing business, taxation policies, legal protections, and global credibility.

The list of Best International Jurisdictions to invest in India considering all relevant factors is as follows:

1. Singapore

Singapore is known as the best overseas jurisdiction to investment in India. Its strategic location, good banking system and DTAA with India make it attractive to the investors. Investors channeling capital through Singapore enjoy low withholding taxes and a transparent legal landscape. Singapore is also well positioned for access to regional markets so if you are an investor with an eye on opportunities across Asia and if you want to be here doing business, then you are in the right place. The key tax rates under India-Singapore DTAA are as below:

• Capital Gains tax on Shares acquired:
  • Before April 1, 2017 – Fully exempt (Grandfathering rule)
  • After April 1, 2017 up to March 31, 2019 - Capital gains are taxed at 50% of the Indian domestic tax rate.
  • After March 31, 2019 - 100% taxable in India
• Dividends: 10% or 15% depending upon shareholding
• Interest: 15%
• Royalties/Fees for Technical Services: 10%

Other benefits of Investment from Singapore are as below: -

• Bilateral Economic & Trade Relations
• CECA (Comprehensive Economic Cooperation Agreement) between India and Singapore.
• Ensures long-term policy stability and goodwill for businesses.

2. Mauritius

Historically Mauritius had been one of the most popular routes for Foreign Portfolio Investors to invest in India due to earlier DTAA benefits and exempted capital gains. After the amendment in treaty still Mauritius is attractive for its lower tax rates in comparison to other counties. The key tax rates under India-Mauritius DTAA are as below:

• Capital Gains tax on Shares acquired:
  • Before April 1, 2017 – Fully exempt (Grandfathering rule)
  • After April 1, 2017 up to March 31, 2019 - Capital gains are taxed at 50% of the Indian domestic tax rate
  • After March 31, 2019 - 100% taxable in India

• Dividends: 5% or 15% depending on shareholding.
• Interest: 7.5%
• Royalty: 15%
• Fees for Technical Services: 10%

Other benefits of Investment from Mauritius are as below: -

• Treaty Protection Under Bilateral Investment Promotion & Protection Agreement (BIPA)
  • Protects investors from arbitrary expropriation
  • Enables international arbitration in disputes
• Low Operational Costs
  • Setting-up and maintaining a company or fund is way more cost effective in India than in other jurisdictions.
  • India also offers access to skilled professionals and legal advisors experienced in India-focused funds.

3. Netherlands

Netherlands has one of the most extensive global treaty networks including favorable treaty with India which provides greater certainty and stability compared to other jurisdictions along with competitive Tax rates and effective dispute resolution mechanisms. The key tax rates under India-Netherlands DTAA are as below:

• Dividends: 10%
• Interest: 10%
• Royalties/FTS: 10%

Other benefits of Investment from Mauritius are as below: -

•  Capital Gains Tax only if value is substantially derived from immovable property for Sale of shares of unlisted Indian companies.
• Stable and Transparent Legal & Tax Regime
  • Investor-friendly policies.
  • Availability of advance tax rulings (ATR) and APAs (Advance Pricing Agreements) to minimize tax risk.

4. United Arab Emirates (UAE)

The UAE offers an increasingly popular tax-friendly environment without a corporate or personal income tax. Establishment of various free zones with investor friendly laws and regulations has made the UAE one of the best international destinations for investment in the India, particularly for the MENA region. The key tax rates under India-UAE DTAA are as below:

• Dividends: 10%
• Interest: 5% & 12.5%
• Royalties: 10%

Other benefits of Investment from UAE are as below: -

• Helps reduce tax liability on repatriation of profits from India to the UAE.
• Capital Gains Tax only if value is substantially derived from immovable property for Sale of shares of unlisted Indian companies.

• Strategic Location and Trade Ties with India.
  • Close geographic proximity to India (3–4 hour flight).
  • Large Indian diaspora and business presence.

• No Exchange Controls
  • No restrictions on repatriation of funds from UAE.
  • Stable currency (AED) pegged to USD, which provides currency risk protection

​​5. Cyprus

Cyprus has been becoming very popular because of its very low tax rates, expanding treaty network and membership of the EU. Its legal framework is rooted in English common law, which investors find to be highly advantageous.  The key tax rates under India-UAE DTAA are as below:

• Dividends: 10%
• Interest: 10%
• Royalties & Fees for Technical Services: 10%

Other benefits of Investment from Cyprus are as below: -

• Investor Protection Treaty with India
  • India and Cyprus have a Bilateral Investment Promotion and Protection Agreement (BIPA) that provides:
    •  Protection against expropriation
    • Non-discriminatory treatment
    • Access to international arbitration

• Cost Effective and Fund-Friendly Setup
  • Low setup and compliance costs
  • Skilled professionals and fund administrators available.

Jurisdiction	Best For	Key Benefits
Singapore	Startups, PE/VC funds	Favorable DTAA, low tax, strong legal system, fund-friendly (VCC)
Mauritius	FPIs, holding companies	No capital gains tax, DTAA benefits (grandfathered), low cost, SEBI recognition
Netherlands	MNCs, infra/investment JVs	EU credibility, tax treaties, investment treaty, APA-friendly
UAE	HNIs, family offices, trading	No personal tax, 0–9% corporate tax, free zones, close to India
Cyprus	Mid-size funds, EU-based investors	12.5% corporate tax, EU compliant, no CGT, BIPA with India

Conclusion

Choosing the perfect foreign jurisdiction for investment into India is such an essential choice that has an impact on tax risk, legal protection, and business efficiency. Singapore, Mauritius, the Netherlands, Cyprus, and the UAE are the most preferred choices in 2025, thanks to tax treaties, investor-friendly rules, and strong legal systems.

 

 

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