Global real estate transparency is tightening compliance for Indian HNIs

India’s high net worth individuals (HNIs) who own properties abroad are exploring ways to comply with the new automatic exchange framework of the Organization for Economic Co-operation and Development (OECD), lawyers and immigration experts said. If accepted, the framework would give Indian tax authorities unprecedented visibility into foreign real estate from 2029, they said.It extends the scope of global tax transparency to real estate, an asset class that has been left out of automatic exchange mechanisms such as the Common Reporting Standard (CRS). According to the OECD Tax Transparency in Asia 2025 ReportMember States have identified at least €24 billion in additional revenues through information exchange mechanisms between 2009 and 2024. 1.9 billion were identified in 2024 alone.

India, during its G20 chairmanship, had been a proponent of expanding the scope of the CRS to include non-financial assets such as real estate under automatic exchange among the 38-member OECD. This impetus led to a special multilateral framework for the automatic exchange of real estate information.The framework has significant implications for Indian residents who own real estate abroad through companies, trusts or Special Purpose Vehicles (SPVs). It changes the way foreign real estate structures will be viewed by tax authorities, says Rishabh Shroff, partner and co-head (private client) at Cyril Amarchand Mangaldas.

“The OECD’s property exchange framework is a decisive shift for globally mobile Indian families. Structures that once isolated real estate abroad – SPVs, tiered trusts, property-linked residency routes – will now be under direct, automatic supervision,” he said, adding that India’s residency-based tax system and reporting rules under the Foreign Exchange Management Act are magnifying the impact.

According to Shroff, the tightening of property-oriented residency regimes abroad had already prompted wealthy families to move away from traditional property-related pathways. “As Europe tightens property-related visas and extends golden visa deadlines, Indian HNIs are turning to business, financial and donation-driven residency options that provide substance without the disclosure fragility of ‘pure’ direct property acquisition,” he said.

The changes also influence investment-related migration decisions. “Property-led Golden Visa investors rely heavily on real estate investments to qualify for residency. Automatic exchange means that every detail – purchase price, financing, rental income, beneficial ownership – will be shared with Indian authorities,” said Rajneesh Pathak, founder of Global North Residency & Citizenship.

“Many clients who used real estate as a ‘silent’ tool for asset diversification are revaluing,” Pathak said, adding that clients are responding by improving documentation and reporting.

“We are also seeing clients proactively organizing source of funds documentation, rental income reporting, financing pathways and OECD-aligned valuations.”

For families with complex holding structures, compliance risks are greater, says Gopal Kumar, founder of borderless.VIP. “Issues arise when the source of the money or the property itself is not properly declared,” he said, adding that tiered SPVs and multi-jurisdictional ownership structures would receive more attention as beneficial ownership and income details become visible.

The hardest hit areas are residency and citizenship programs built around real estate investments, such as those in parts of southern Europe, the Caribbean and Southeast Asia, and any inconsistency will be quickly noticed, according to Kumar.

The framework bridges a long-standing gap, says Keshav Singhania, head of private client at Singhania & Co. “Offshore companies, trusts and nominee structures that own real estate have historically been left out of automatic reporting,” he said, noting that while timelines have been defined, exchanges will materialize gradually as bilateral agreements come into effect.