Archive · 30 Jul 2026
Indian Investors Face US Estate Tax on US Stocks
Indian people can buy stocks in the United States.
If they die, the U.S. may take a big tax on those stocks.
The tax starts if the stocks are worth more than $60,000 when the person dies.
The tax can be as high as 40% on the extra amount.
Because India has no tax treaty with the U.S., Indian investors can avoid this tax by buying special funds that are based in Europe.
In 2026, Indians invested over $1.4 billion in foreign markets, so this tax is an important thing to think about.
Indian investors holding US stocks may owe estate tax after death.
Tax applies if US‑situated assets exceed $60,000 at death.
Exemption is $60,000, with rates up to 40% on excess.
No treaty with India; alternative routes like UCITS funds avoid tax.
In 2026, Indians invested $1.487 B overseas, making tax a key consideration.
- Who
- Indian investors and US estate tax authorities
- What
- US estate tax on US-situated assets for nonresident foreigners
- When
- applies upon death; filing within 9 months after death
- Where
- United States (assets) and India (investors)
- Why
- to tax nonresident foreigners' US assets; exemption gap between US citizens and nonresidents
- Tax Threshold
- $60,000
- Maximum Tax Rate
- 40%
- Exemption for US citizens
- $15 million
- Applicable to
- Nonresident foreigners
- Alternative investment route
- UCITS-domiciled funds