Do I have to convert my Indian savings account after moving to Germany?

Yes. Under FEMA, once you become an NRI you must either close your resident savings/current accounts or re-designate them as NRO accounts. Continuing to operate a resident account as an NRI is a FEMA violation with penalties of up to three times the amount involved.

What is the difference between NRE and NRO accounts?

An NRE account holds foreign earnings converted to rupees — it is fully repatriable and the interest is tax-free in India. An NRO account holds India-sourced income (rent, dividends, old salary), interest is taxable in India (30% TDS) and repatriation is capped at USD 1 million per financial year.

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Your Indian Money as an NRI

The moment you settle in Germany you become an NRI under Indian law — and your Indian accounts, investments and taxes all change. Here's exactly what to do so you stay compliant and keep more of your money.

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Are You an NRI?

Under India's FEMA rules you're typically an NRI once you're abroad for more than 182 days in a financial year.

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Under India's FEMA rules you're typically an NRI once you're abroad for more than 182 days in a financial year (April–March), or you've moved abroad for an uncertain period. From that point your resident bank accounts and demat must change, this isn't optional.

NRE vs NRO at a glance

The two accounts every NRI needs — for different money.

Feature	NRE	NRO
Money it holds	Foreign earnings (your German salary)	India-sourced income (rent, dividends)
Interest taxable in India?	No, tax-free	Yes — 30% TDS (DTAA reduces it)
Repatriable?	Fully & freely	Up to USD 1M / year
Best for	Sending money home from Germany	Managing your old Indian income

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Your Bank Accounts — convert them or risk a penalty

This is the step most Indians skip, and it's a legal requirement. Once you're an NRI, your old resid…

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This is the step most Indians skip, and it's a legal requirement. Once you're an NRI, your old resident savings account can no longer be used as-is. You must re-designate it to NRO (or close it) and, ideally, open an NRE account for the money you send back from Germany.

NRO (Non-Resident Ordinary)
For income that arises in India — rent, dividends, interest, a final Indian salary, gifts. Your old resident account is converted into this. Interest is taxable in India (30% TDS, reducible via DTAA). Repatriation capped at USD 1M/year.
NRE (Non-Resident External)
For money you earn abroad and send to India (your German salary). Fully and freely repatriable, and the interest is completely tax-free in India. This is where your remittances should land.
FCNR (B)
A fixed deposit held in foreign currency (EUR, USD, etc.), no rupee exchange-rate risk, interest tax-free in India. Good if you may bring the money back out later.
Mandatory conversion
Under FEMA you must close or re-designate resident accounts once you're an NRI. Banks do this with a simple NRO conversion form, a copy of your passport/visa, and proof of address in Germany.
⚠️ The penalty
Operating a resident account as an NRI is a FEMA contravention — penalties can reach three times the amount involved (or ₹2 lakh), plus ₹5,000/day for a continuing default. It's rarely worth the risk; convert promptly.
Keep one card active
Practically: re-designate your main account to NRO, open an NRE account for remittances, and keep a debit card working for India trips. Most big banks (HDFC, ICICI, SBI, Axis) have dedicated NRI desks.

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Do the NRE/NRO setup in your first few months. You'll want the NRE account ready before you start sending your German salary home, money parked there is repatriable and its interest is tax-free in India.

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Investments — what you can keep, change, or close

Your existing Indian investments don't all behave the same way once you're an NRI. Some continue hap…

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Your existing Indian investments don't all behave the same way once you're an NRI. Some continue happily, some need re-paperwork, and a couple have hard restrictions.

Mutual funds
You can keep investing in most Indian mutual funds as an NRI through your NRO/NRE account, but a few fund houses restrict NRIs (especially US/Canada; Germany is usually fine). Update your KYC to NRI status. Gains are taxable in India (TDS applies for NRIs).
Stocks / demat
A resident demat account can't be used as an NRI. You move to the Portfolio Investment Scheme (PIS) route with an NRO/NRE-linked demat to trade Indian shares. Re-do KYC with your broker.
PPF
You cannot open a new PPF as an NRI, but an existing PPF can run until its 15-year maturity. You just can't extend it further once you're non-resident.
Fixed deposits
Resident FDs should be re-designated to NRO (or NRE/FCNR). NRE/FCNR FD interest is tax-free in India; NRO FD interest is taxable.
Property
You can keep, rent out, or sell Indian property as an NRI. Rental income goes to your NRO account and is taxable in India. Sale proceeds are repatriable within the USD 1M/year limit.
Insurance / LIC
Existing Indian life-insurance policies generally continue. Keep premiums paid from your NRO/NRE account and inform the insurer of your status.

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Before you leave, make a one-page inventory of every Indian account, demat, SIP, FD and policy with login details and nominee info. Updating KYC to "NRI" from abroad is far slower than doing the groundwork while you're still in India.

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India Tax as an NRI — and avoiding double tax

Good news: as an NRI, only your India-sourced income is taxable in India, your German salary is not …

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Good news: as an NRI, only your India-sourced income is taxable in India, your German salary is not taxed in India. The India–Germany DTAA (Double Taxation Avoidance Agreement) makes sure you're not taxed twice on the same income.

What India taxes
Only income that arises in India — rent, capital gains on Indian shares/funds/property, NRO interest. Your German salary and German investments are outside India's net once you're an NRI.
Residency rule
You're generally an NRI for a financial year (April–March) if you're in India for less than 182 days. The year you move, your status can be "resident" for part of it, plan the timing.
Do you still file an ITR?
Yes, if your India-sourced income exceeds the basic exemption, or to claim a refund of excess TDS. Many NRIs over-pay TDS (e.g. 30% on NRO interest) and reclaim it by filing.
DTAA + Form 10F + TRC
To get the lower DTAA tax rate (instead of flat 30% TDS), give your Indian bank/payer a Tax Residency Certificate (TRC) from Germany plus Form 10F and a self-declaration. This is the key paperwork that saves real money.
Germany side
Germany taxes your worldwide income while you're resident here — including Indian rental income and gains, but credits the Indian tax paid under the DTAA. Declare Indian income in your German return.
TCS on money sent FROM India
If family send you money from India above ₹10 lakh/year under the LRS, 20% TCS applies — it's refundable to the sender via their Indian ITR. See our Sending Money guide.

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Get a Tax Residency Certificate from your German Finanzamt and file Form 10F early, it cuts NRO TDS from 30% down to the DTAA rate. Combined with filing an Indian ITR to reclaim excess TDS, this is the single biggest money-saver for NRIs.

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Moving Money In and Out

How to send money between Germany and India, NRE, NRO, LRS rules and TCS.

•Germany → India: send to your NRE account — fully repatriable later, interest tax-free in India. Use Wise/SWIFT (see our Sending Money guide).
•India → Germany: from NRE freely; from NRO up to USD 1M/year with Form 15CA/CB.
•Family sending you money from India: amounts over ₹10 lakh/year attract 20% TCS (refundable to them via ITR).

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Sending Money to India

Wise vs SWIFT, LRS & TCS

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German Tax Guide

Declaring Indian income here

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Stock Investing

Investing from Germany

This is general information, not financial or tax advice. FEMA and Indian tax rules are detailed and change, confirm with your Indian bank's NRI desk and a cross-border tax advisor before acting. Figures reviewed June 2026.