NPS for NRI: 2026 Rules, Tax Benefits and 7 Steps to Open
If you earn in dirhams, riyals, pounds or dollars but plan to retire in India, the National Pension System is one of the few Indian retirement products you can join from abroad. Yet most questions about NPS for NRI investors still get half-answers: Can I open it from Dubai? Which bank account do I use? Can I take the money out of India later? Does the tax deduction help me at all?
This guide answers those questions using the Pension Fund Regulatory and Development Authority (PFRDA) rules and NPS Trust's own NRI guide, opened on 9 November 2026. It covers who can join, the documents, repatriable versus non-repatriable accounts, the new exit rules, tax, and a seven-step way to open an account online.
Please note: this article is general information, not professional financial, tax or investment advice. Rules change, so check the official sources linked below or speak to a qualified professional before you decide. Read our disclaimer.
Table of contents
- Can an NRI invest in NPS?
- NPS for NRI: documents you need
- NPS for NRI: repatriable or non-repatriable?
- NPS for NRI: how to open an account online in 7 steps
- Investment choices in NPS for NRI accounts
- NPS for NRI withdrawal and exit rules after the 2025 changes
- Tax benefits of NPS for NRI investors
- Is NPS for NRI savers right for you?
- Sources
- FAQ
Can an NRI invest in NPS?
Yes. PFRDA's All Citizen Model says any Indian citizen, resident or non-resident, and any Overseas Citizen of India (OCI) can join, provided they are aged 18 to 85 and complete KYC. Persons of Indian Origin (PIOs) who are not OCIs, and Hindu Undivided Families, are not eligible. NPS is strictly an individual account: nobody can open it on your behalf.
There is one big limit. NPS has two account types, and PFRDA states that NRIs and OCIs with Tier I accounts are not permitted to activate a Tier II account. So NPS for NRI investors means Tier I only: the locked-in pension account that carries the tax benefits, without the flexible Tier II savings account residents can use.
Note that some older NPS Trust and eNPS documents still mention lower maximum ages (60 or 70). PFRDA's current page says 18 to 85, so check the limit shown on the form when you register.
NPS for NRI: documents you need
PFRDA lists these documents for non-resident subscribers:
| NRI (Indian passport holder) | OCI cardholder |
|---|---|
| One recent photograph | One recent photograph |
| PAN card | PAN card |
| Indian passport | OCI card |
| Proof of address in India | Proof of address in your foreign country |
| Proof of NRE or NRO bank account | Proof of NRE or NRO bank account |
If you do not yet have the right bank account, start with our explainer on NRE vs NRO accounts, because the account you choose decides whether your NPS money can leave India later.
NPS for NRI: repatriable or non-repatriable?
When you register as an NRI on eNPS, you must pick the account type. NPS Trust's NRI guide explains the difference:
- Repatriable: you verify an NRE or NRO account with one of the empanelled banks, and later contributions must come from the account given at registration. The eNPS site states that for repatriation of the amount, contributions should be made from an NRE account only.
- Non-repatriable: you can give details of any NRE or NRO account on a self-declaration basis, and contributions can be paid through net banking, credit card or debit card. Money in this account is treated like other non-repatriable rupee funds under foreign exchange rules.
In practice, if you are building retirement savings from a Gulf or Western salary and might settle abroad, the repatriable route funded from an NRE account keeps more options open. If you mainly hold Indian income (rent, interest) in an NRO account, the non-repatriable route can be simpler.
NPS for NRI: how to open an account online in 7 steps
- Go to eNPS from the PFRDA or NPS Trust website and choose New Registration.
- Select "Non Resident Indian (NRI)" and choose Repatriable or Non-repatriable.
- Choose PAN or Aadhaar to register. With Aadhaar you enter your passport and Aadhaar numbers and an OTP sent to the mobile linked with Aadhaar; with PAN, an empanelled bank verifies your KYC.
- Add your NRE/NRO bank details (verified by an empanelled bank for repatriable accounts).
- Pick a pension fund and investment choice (see the next section).
- Upload your photo and signature and add a nominee.
- Make the first contribution online, at least Rs 500 according to NPS Trust. A Permanent Retirement Account Number (PRAN) is allotted after payment.
PFRDA's FAQ also sets a minimum of Rs 1,000 a year for Tier I. There is no upper limit on contributions, and you can pay later through your Point of Presence, eNPS, the NPS app or D-Remit, which links a virtual ID to your PRAN and supports UPI and QR codes.
Investment choices in NPS for NRI accounts
Your money is managed by a PFRDA-registered pension fund you choose (you can switch once a year). Under the common schemes you pick between:
- Active choice: you set the mix yourself, with equity capped at 75% and corporate bonds or government securities up to 100%.
- Auto choice: life-cycle funds that reduce equity as you age, from 25%, 50% or 75% equity up to age 35 down to 5% to 15% at 55 and above, plus an aggressive option.
Since 1 October 2025, non-government subscribers can also use the Multiple Scheme Framework: pension-fund schemes with stated risk levels (high-risk schemes may hold up to 100% equity), a minimum 15-year lock-in and charges capped at 0.30% a year. You can change your asset allocation up to four times a year. For a comparison with market-linked funds you can exit any time, see our guide to mutual funds for NRI investors.
NPS for NRI withdrawal and exit rules after the 2025 changes
PFRDA has overhauled exits for the All Citizen Model. Its current table says:
| Situation | What you can take |
|---|---|
| Normal exit (age 60, or after 15 years if earlier) | Up to 80% as a lump sum; at least 20% buys an annuity |
| Normal exit, corpus up to Rs 8 lakh | 100% lump sum or other approved payout options allowed |
| Normal exit, corpus Rs 8-12 lakh | Up to Rs 6 lakh lump sum; balance as a payout for at least 6 years or an annuity |
| Premature exit | Up to 20% lump sum; at least 80% annuity (full lump sum if corpus is Rs 5 lakh or less) |
| Partial withdrawal before 60 | Up to 4 times, with 4 years between withdrawals |
| Death of subscriber | 100% to the nominee as a lump sum, or other options |
The old 5-year minimum lock-in has been removed, and entry and exit ages now go up to 85. Because at least part of a larger corpus must buy an annuity, NPS works best as genuine retirement money, not as a short-term savings pot.
Tax benefits of NPS for NRI investors
NPS contributions can reduce your Indian taxable income, but only in specific cases. As The Economic Times explains, NRIs get the same deductions as residents under the old tax regime: own contributions within the overall Rs 1.5 lakh limit, plus an extra Rs 50,000 for NPS, a total of up to Rs 2 lakh a year. From tax year 2026-27 the Income-tax Act, 2025 renumbers these sections, but the old-regime limits are unchanged. Two catches:
- The deduction only helps if you have income taxable in India (rent, NRO interest, capital gains). Gulf salary earned abroad by an NRI is not taxed in India, so there may be nothing to deduct it from. Our NRI income tax return guide explains when you must file.
- The extra deductions are not available in the new tax regime, which is the default.
Annuity income from NPS is taxable in India at your slab rate. Your country of residence may tax NPS growth or withdrawals too: GOV.UK says UK residents normally pay UK tax on foreign income, and US persons must file an FBAR if their foreign financial accounts together exceed USD 10,000 at any time in the year. Our DTAA guide explains how double taxation relief works.
Is NPS for NRI savers right for you?
It can suit you if: you plan to retire in India, want a low-cost, regulated pension, are comfortable locking money away until 60 (or for 15 years), and want a disciplined way to invest part of a Gulf salary in rupees.
Think twice if: you may become a foreign citizen and settle abroad, you need access to the money in the next decade, or your new country taxes foreign pensions heavily. Pair NPS with protection first: our sister blog's guide to term insurance for NRI families covers that side, and our PPF for NRI rules explain the other big long-term scheme.
Sources
This guide was checked against these official and reputable sources on 9 November 2026:
- PFRDA: NPS All Citizen Model (eligibility, documents, Tier I/II, investment choices, withdrawal and exit rules)
- PFRDA: Frequently Asked Questions - All Citizen Model (PDF)
- NPS Trust: NPS for NRIs - opening accounts through eNPS (PDF)
- The Economic Times (6 Aug 2026): NPS for NRIs - tax benefits, eligibility and withdrawal rules
- GOV.UK: Tax on foreign income
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
Photo: Piggy-bank-968302 by stevepb, CC0, via Wikimedia Commons (cropped).
FAQ: nps for nri
Can an NRI invest in NPS?
Yes. NPS for NRI investors is allowed: PFRDA lets Indian citizens, resident or non-resident, and OCI cardholders aged 18 to 85 to join NPS after completing KYC. PIOs who are not OCIs cannot join.
Can an NRI open an NPS Tier 2 account?
No. PFRDA states that NRIs and OCIs with Tier I accounts are not permitted to activate a Tier II account, so NRIs can only hold the Tier I pension account.
Which bank account should an NRI use for NPS?
Use an NRE account if you want a repatriable NPS account, because eNPS says contributions must come from an NRE account for repatriation. An NRO account can fund a non-repatriable account.
Can an NRI continue an NPS account opened while living in India?
PFRDA's eligibility covers non-resident Indian citizens, so moving abroad does not by itself make you ineligible. Update your residential status, address and bank details with your Point of Presence or CRA.
Is there a tax benefit for NRIs in NPS?
Under the old tax regime NRIs can claim up to Rs 2 lakh a year in deductions for NPS contributions, but only against income taxable in India. The extra deduction is not available in the new regime.
How much can an NRI withdraw from NPS at 60?
Under PFRDA's current rules, up to 80% of the corpus as a lump sum, with at least 20% used to buy an annuity. Smaller corpora of up to Rs 8 lakh can be withdrawn in full.
Read next
- NRE vs NRO account: 7 key differences
- PPF for NRI: 2026 rules to continue, extend or close
- NRI tax residency: 182-day and 120-day tests explained
- More NRI Investing guides
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About the author: Sumit Manwal
Sumit Manwal is the founder of Hospitality Vacancy, the job site built for the hotel industry. He is passionate about helping hotel management students and hospitality professionals build successful careers, and connects talented people with hotel jobs across India, the Gulf and Europe. On Expat Money Desk he writes clear, practical money guides for Indians and other expats living in the US, UK, Canada, Australia and the Gulf, so every reader can make confident decisions about their work and life. He is not a financial, tax or investment professional, so every guide here links to official sources and he encourages readers to confirm details with a qualified expert before acting.
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