What is the Difference Between NRI Repatriable and Non-repatriable?

Here are some of the factors that you need to consider to decide between a repatriable or non-repatriable investment. 

1. First, you need to see if you are looking for a long-term goal with a single country or want to have the flexibility to transfer your earnings internationally. 
    
2. Second, you need to consider the taxation in your home country and the country of investment. 
    
3. Third, you need to assess the economic conditions in both countries and see if they offer a safeguard against economic instability. 
    
4. At last, you need to make yourself familiar with the legal requirements for both investments, which can affect your returns and investment planning. 

Here are some of the comparisons between the NRI repatriable and non-repatriable investments. 

1. Flexibility and liquidity: 
 

• Repatriable: It has high liquidity, flexibility, and you can transfer funds easily without any hurdle. 
• Non-Repatriable: It has low liquidity, and the funds can only be used for the local economy. 
   

2. Risk Management: 
 

• Repatriable: It has a low risk of currency protection, and can move funds according to the response of economic changes. 
• Non-Repatriable: It has a high risk if the economy is unstable, and the funds are bound to local currency. 
   

3. Taxation: 
 

• Repatriable: This offers tax treaties between various countries and lowers the tax burdens. 
• Non-Repatriable: It has a higher taxation as it is subject to local taxation. 

Some of the Key features of NRI repatriable and non-repatriable investments. 

1.  NRI Repatriable: 
 

• In this, an individual or investor can easily transfer funds, including both principal amount and the interest earned on it, to their home country. 
• To use these NRI repatriable investments, you will need an NRE (Non-Resident External) account, which is denominated in foreign currency and protects your funds from currency exchanges. 
• Through the NRI repatriable investments, the government can track the foreign exchange flows. 
   

2. NRI Non-Repatriable: 
 

• The funds you earned from the investments will remain in the country from you earned them. 
• For these investments, you will need an NRO (Non-Resident Ordinary) account, which is denominated in local currency. 
• Earnings from this account are taxable, and the transfer of funds to foreign countries can be challenging.