GIFT City (IFSC) & Family Offices

The GIFT City "Tax Shield" (2026 Update)

The Union Budget 2026 has significantly enhanced the appeal of GIFT City by doubling the available tax holiday. This move directly positions India as a competitive alternative to global hubs like Singapore and Dubai.

●     Extended Tax Holiday: Businesses in GIFT City now enjoy a 100 percent tax holiday for 20 years (increased from 10 years) within a 25-year window.

●     Post-Holiday Advantage: After the 20-year period, a flat 15 percent tax rate applies, compared to the standard 35% rate for foreign entities elsewhere in India.

●     Relocation Incentives: Starting April 2026, offshore mutual funds and ETFs can relocate to GIFT City as a tax-neutral transaction, eliminating capital gains tax on the shift.

This extension will greatly address dire investor concerns regarding policy stability and enhance the much needed cost efficiency compared to traditional financial centers. India pairs this with access to a $130 billion domestic insurance market while offering a 20-year holiday; positioning it aggressively against international rivals