Conceptual · Article 3.2.1

Global REITs.

Owning the World's Warehouses, Data Centres and Malls — From India.

Published as on 22 July 2026

A Global REIT is a Real Estate Investment Trust listed on a foreign exchange — the US, Singapore, Australia, Japan, Europe — that owns income-producing property and, by law, hands most of that income back to shareholders. It turns real estate ownership into something as liquid as a share. For an Indian investor, it opens up what our own market cannot yet offer: data centres riding the AI build-out, e-commerce warehouses, cell towers, healthcare campuses and global malls, priced in foreign currency and diversified across cycles. Access comes two ways — an Indian-domiciled fund-of-funds bought in rupees, or direct purchase abroad under the LRS. Both carry a distinct tax and compliance profile, and the rupee's path against the dollar sits underneath every return.

~USD 1.7 tn

Global Market Size

12.5% LTCG

After 24 Months

25% WHT

US Dividends

20% TCS

LRS Above ₹10L

Executive Summary · Page 2

Executive Summary · 6 Findings

A Global REIT lets you become a landlord to the world's economy without ever signing a lease. It answers a question India's own real estate cannot: how do I own a slice of the data centres, warehouses and cell towers that the digital economy runs on — with daily liquidity and a rupee entry point? The catch is not the asset. It is the plumbing: two access routes, two tax regimes, foreign withholding to reclaim, currency that moves under everything, and a reporting obligation that carries a ₹10 lakh penalty if ignored.

Covers what Global REITs are and how they differ from Indian REITs, the sectors and benchmarks that define the global market, the three access routes (Indian FOF, direct via LRS, and Singapore's zero-WHT S-REITs), the two distinct tax treatments under FY 2025-26 rules, dividend withholding and Foreign Tax Credit mechanics, currency and interest-rate risk, Schedule FA compliance, and six questions Indian investors ask.

Key Findings

Listed real estate, worldwide, in a single unit.

A REIT owns income-producing property — offices, malls, warehouses, data centres, hospitals, cell towers — and must distribute at least 90% of its taxable income as dividends. Global REITs are those listed abroad, on the NYSE, SGX, ASX and other exchanges, giving Indian investors exposure to a market worth roughly USD 1.7 trillion, far broader than India's own.

Access to what India's market cannot yet offer.

India's REITs (Embassy, Mindspace, Nexus, Brookfield) are office and retail. Global REITs open up whole sectors absent at home: data centres riding AI and cloud demand, logistics warehouses, cell towers, healthcare and residential real estate — tracked by the FTSE EPRA/NAREIT and MSCI World Real Estate indices across 40-plus countries.

Three routes, from rupee-simple to fully direct.

You can invest via an Indian fund-of-funds (e.g. the Kotak International REIT FOF — no LRS, ₹100 minimum), or directly abroad through international brokers under the LRS, or specifically into Singapore's S-REITs, which levy zero withholding tax on foreign investors. Each trades operational simplicity against cost and control.

Two access routes mean two tax regimes.

Under FY 2025-26 rules, both a directly held foreign REIT and an Indian international FOF are taxed as non-equity assets: long-term capital gains at 12.5% without indexation after a 24-month holding, short-term gains at your slab rate. The ₹1.25 lakh equity LTCG exemption does not apply to either — foreign securities and foreign-investing FOFs pay no STT.

Currency and withholding sit under every return.

Direct holdings are priced in USD, SGD or AUD — the rupee's path is part of your return, for better or worse. US REIT dividends face 25% withholding (30% without Form W-8BEN), creditable in India via Form 67. LRS caps outflows at USD 250,000 a year, with 20% TCS above ₹10 lakh, and direct US holdings carry potential US estate-tax exposure.

Interest rates are the dominant market risk.

REIT values move inversely with rates: higher yields raise borrowing costs and make distributions less competitive. The 2022-23 US rate cycle pushed the FTSE EPRA/NAREIT Developed Index down roughly 25% from its peak before recovering. Global REITs are a diversifier for the long haul, not a capital-preservation parking bay.

At A Glance

Metric	Value	Detail
What	Listed real estate	Foreign exchanges
Market Size	~USD 1.7 tn	40+ countries
LTCG	12.5%	After 24 months
STCG	Slab rate	Under 24 months
US Dividend WHT	25%	W-8BEN; else 30%
LRS Cap	USD 250,000/yr	Per person
TCS	20%	Above ₹10 lakh
Best Use	Diversification	Long-horizon

Exhibit 01: US REIT Dividend — The After-Credit Math

Step	Amount	Note
Gross dividend	₹1,00,000	Added to income
US WHT (25%)	−₹25,000	W-8BEN filed
Net received	₹75,000	In hand
Extra India tax	₹5,000	30% slab, FTC used

*Illustrative, FY 2025-26. A 30% slab investor pays ₹30,000 India tax on the ₹1,00,000 dividend, claims the ₹25,000 US withholding as Foreign Tax Credit via Form 67, and remits only the ₹5,000 balance. In a lower slab the credit may cover the full Indian liability; FTC never exceeds Indian tax on that income and yields no cash refund.

The Opening · Page 3

The Opening

A Real Estate Investment Trust is a simple idea with a powerful consequence. Pool investors' money, buy income-producing property, distribute at least 90% of the rent as dividends, and list the whole thing on an exchange. Suddenly the least liquid asset class on earth trades like a stock. A Global REIT does this on a planetary scale: through one unit bought from Mumbai, you can own a share of a Prologis warehouse in Rotterdam, an Equinix data centre in Virginia, or a Mapletree logistics park in Singapore. The rent those tenants pay flows back to you, minus the manager's cut — and you never had to fly anywhere or register a title.

"India's REIT market is offices and malls. The global market is the physical backbone of the digital economy — the warehouses e-commerce ships from, the towers your calls travel through, the data centres where AI actually lives. That is the diversification you are buying, not just a foreign flag on the income."
Beyond Offices and Malls

Why go global at all. India already has listed REITs, taxed favourably and simple to hold. Global REITs earn their place not by being cheaper but by being different: they own property types India's market does not yet list, in currencies and economic cycles that do not move in step with the rupee or the Indian property market. That lack of correlation is the point. It is also why they belong in the long-term, growth-and-diversification sleeve of a portfolio — never in the money you need next year.

The two catches. The first is currency: every dollar of distribution and appreciation is translated back into rupees, so USD/INR is silently part of your return — a tailwind over the last decade, but never a promise. The second is friction: withholding tax to reclaim, an LRS cap to respect, and a Schedule FA disclosure that is not optional. Global REITs reward investors who treat the compliance as seriously as the selection.

The Honest Boundary: Global REITs are NOT a substitute for Indian REITs — they complement them. They are NOT a low-risk parking bay — they swing with global interest rates. They are NOT free of paperwork — direct holdings demand W-8BEN, Form 67 and Schedule FA. They ARE one of the cleanest ways for an Indian investor to own property types and geographies the home market cannot supply, provided the horizon is long and the compliance is handled.

Structure

Part I

What Global REITs Are & the Landscape You Can Own

Part II

The Three Access Routes for Indian Investors

Part III

Taxation, Withholding & Schedule FA Compliance

Part IV

The Verdict: Risks & Who Should Own Them

Use If

✓ Horizon of 5+ years

✓ You want global diversification

✓ Comfortable with currency risk

✓ Can handle (or delegate) compliance

Do NOT Use If

✕ Money is needed within a year

✕ You want capital-preservation

✕ You cannot tolerate FX swings

✕ Schedule FA reporting is a dealbreaker

Part I

What Global REITs Are, How They Differ from Indian REITs, and the Landscape You Can Own

The 90%-distribution structure that makes real estate trade like a share; how listing abroad opens up data centres, logistics, cell towers and healthcare that India's market cannot match; and the benchmarks that define a USD 1.7 trillion global market.

Part I · Page 4

Indian vs Global REITs

Feature	Indian REITs	Global REITs
Access	NSE / BSE	LRS + broker, or FOF
LTCG	12.5% (12 mo)	12.5% (24 mo)
STCG	20%	Slab rate
Currency	INR	USD / SGD / AUD
₹1.25L exemption	Applies	Not available

A REIT is legally bound to distribute at least 90% of taxable income as dividends, which is why it behaves like a high-yield, liquid proxy for physical property. India's four listed REITs are concentrated in offices and retail; Global REITs span a market roughly USD 1.7 trillion in size across 40-plus countries — and are taxed and accessed quite differently, as the table shows.

The Benchmarks

How the Market Is Measured

The primary benchmark is the FTSE EPRA/NAREIT Global Real Estate Index, tracking listed real estate across 40-plus countries. The MSCI World Real Estate Index is the other widely used gauge for developed-market REIT performance. Most Indian-accessible REIT ETFs and funds track one of these families.

Sectors You Can Own

Sector	Example	Driver
Logistics	Prologis	E-commerce
Data centres	Equinix, Digital Realty	AI / cloud
Net lease	Realty Income	Monthly income
Cell towers	American Tower	Mobile data
Healthcare	Welltower	Ageing demographics
Retail	Simon Property	Global malls

This is the real argument for going global. Prologis is the world's largest REIT, a direct play on e-commerce logistics. Data-centre REITs are the fastest-growing sector, powered by AI and cloud demand. Realty Income — "The Monthly Dividend Company" — pays out every month. None of these property types is available on an Indian exchange today.

The diversification case: Global REITs give you sectors (data centres, cell towers, logistics, healthcare) and geographies (US, Singapore, Australia, Japan, Europe) that India's office-and-retail REIT market simply does not list. Their return drivers — global e-commerce, AI infrastructure, developed-market demographics — are largely uncorrelated with Indian real estate and the rupee. That is the point of the allocation.

Part II

The Three Ways an Indian Investor Can Actually Buy Global REITs

The rupee-simple fund-of-funds route with no LRS and a ₹100 minimum; direct purchase abroad under the LRS with its USD 250,000 cap and 20% TCS; and Singapore's S-REITs, uniquely free of dividend withholding tax for foreign investors.

Part II · Page 6

Route 1 · The Simplest

Indian-Domiciled Fund-of-Funds

The Kotak International REIT FOF invests via the SMAM Asia REIT Sub Trust into Asia-Pacific REITs (Singapore, Japan, Australia). No LRS, no foreign broker, no currency handling — you invest in INR from a ₹100 minimum and receive an ordinary Indian tax statement. The trade-off: two layers of expense ratio (~1.28% on the direct plan) and an Asia-Pacific tilt rather than a truly global one.

Route 2 · Direct via LRS

International Brokerage + Remittance

Open an account with Vested, Interactive Brokers, INDmoney, Groww Global or Stockal, then remit under the Liberalised Remittance Scheme (up to USD 250,000 per year). Buy individual REITs (Realty Income, Prologis, American Tower, Equinix) or ETFs (VNQ, REET, IYR) on the NYSE, SGX or ASX. Maximum choice and control — and maximum compliance.

The LRS TCS Trap

Your bank collects 20% TCS on remittances above an aggregate ₹10 lakh per financial year (threshold raised from ₹7 lakh from FY 2025-26). It is advance tax, fully adjustable against your liability at ITR — excess is refunded — but it is a real cash-flow drag at the point of transfer.

Route 3 · Singapore S-REITs

Asia's Deepest REIT Market — Zero WHT

Singapore's S-REITs — Mapletree Industrial Trust, CapitaLand Integrated Commercial Trust, Keppel DC REIT — impose zero withholding tax on distributions to foreign investors, a deliberate policy to attract capital. That removes the entire WHT-and-credit dance of US REITs. Bought through the same international brokers as US stocks.

The Routes Compared

Factor	FOF	Direct (LRS)
LRS needed	No	Yes
Minimum	₹100	Broker-set
Currency mgmt	None	You
W-8BEN	No	Yes (US)
Schedule FA	No	Yes
Cost	2 expense layers	Broker + FX

NAV of the Kotak FOF was ~₹12.00 (Direct) with AUM ~₹92 crore as of Feb 2026. Figures indicative. The FOF suits first-time or smaller allocations; the direct route suits larger sums where the zero-fund-layer economics and full global choice outweigh the added compliance.

Part III

How Global REITs Are Taxed in India — Capital Gains, Dividends and Disclosure

Why both the direct route and the FOF are taxed as non-equity assets — 12.5% LTCG after 24 months, slab-rate STCG; how US dividend withholding is reduced by W-8BEN and reclaimed via Foreign Tax Credit; and the Schedule FA obligation that carries a ₹10 lakh penalty.

Part III · Page 8

Capital Gains (FY 2025-26)

Holding	Direct REIT	Indian FOF
Under 24 months	Slab rate	Slab rate
24 months +	12.5%	12.5%

Both Are Non-Equity Assets

Directly held foreign REITs and Indian international FOFs (under 35% domestic equity, per Section 50AA) are both taxed as non-equity: 12.5% LTCG without indexation after 24 months, slab-rate STCG below it. The Budget 2025 change extended the 12.5% long-term rate to these FOFs from April 2025 — previously all their gains were slab-taxed regardless of holding.

No ₹1.25 Lakh Exemption

The ₹1.25 lakh equity LTCG exemption under Section 112A applies only to STT-paying Indian equity and equity funds. Foreign REITs and foreign-investing FOFs pay no STT — so gains are taxable from the first rupee, even at the 12.5% rate.

Dividend Withholding by Country

Country	WHT	Note
United States	25%	30% without W-8BEN
Singapore	0%	No WHT on S-REITs
Australia	15%	DTAA
United Kingdom	15%	DTAA

File W-8BEN, Then Claim FTC

Dividends are taxed in India at your slab rate as Income from Other Sources. For US REITs, a one-time Form W-8BEN cuts withholding from 30% to the 25% treaty rate. The withholding is then reclaimed as a Foreign Tax Credit by filing Form 67 before your ITR — but the credit cannot exceed the Indian tax on that income (no cash refund of surplus).

Schedule FA — Non-Negotiable

Foreign REIT units in an overseas account must be declared under Schedule FA of ITR-2 or ITR-3 — income or not — using calendar-year peak value, closing value and dividends. Non-disclosure attracts a ₹10 lakh penalty per year under the Black Money Act. FOF units on an Indian platform are domestic and need no Schedule FA.

Part IV

The Verdict

A diversifier for the patient. Not a parking bay for the impatient.

Part IV: The Verdict · Page 10

30-Second Summary

A Global REIT is listed real estate from around the world — data centres, warehouses, cell towers, healthcare, malls — that distributes most of its income and trades like a share. For an Indian investor it delivers property types and geographies the home market cannot, with return drivers largely uncorrelated to Indian real estate. Access it the simple way through an Indian fund-of-funds in rupees, or the direct way abroad under the LRS, up to USD 250,000 a year.

Under FY 2025-26 rules both routes are non-equity: LTCG at 12.5% after 24 months, STCG at slab, and no ₹1.25 lakh exemption. US dividends face 25% withholding (file W-8BEN, then reclaim via Form 67); Singapore levies none. Direct holders must respect the 20% TCS above ₹10 lakh, manage currency, disclose under Schedule FA, and mind potential US estate-tax exposure. Interest rates are the swing factor — this is a long-horizon diversifier, not a safe harbour.

"Global REITs answer a question Indian real estate cannot: how do I own the physical infrastructure of the digital economy, in currencies and cycles unlike my own? The reward is genuine diversification. The price is currency risk, withholding tax and a compliance file. Pay the price knowingly, hold for years, and the diversification is real. Confuse it for a savings account and the volatility will teach you otherwise."
The Final Orientation

The Bottom Line: Use Global REITs as a long-horizon diversification sleeve — 5 percent to 10 percent of a growth portfolio, not core capital. Start with the Kotak FOF for a rupee-simple, no-LRS entry; graduate to the direct LRS route for larger sums where zero fund-layering and full global choice matter. If you go direct, file W-8BEN once, file Form 67 every year, and never skip Schedule FA. Accept that USD/INR and global rates will move your returns, size the position for a multi-year hold, and verify current NAVs, yields and tax thresholds before committing.

ADWIZR · July 2026

Decision Rules

Use Correctly As

✓ A 5+ year diversification sleeve

✓ Access to data centres / logistics

✓ Currency + geographic spread

✓ A complement to Indian REITs

Misuse Destroys Value

✕ Money needed within a year

✕ A capital-preservation goal

✕ Ignoring FX and rate risk

✕ Skipping Schedule FA disclosure

Three Misconceptions

What Investors Get Wrong

(1) "Foreign REITs are like foreign FDs — safe." They are equity-like and swing with global rates. (2) "The dollar always helps." A decade of rupee depreciation flattered returns; the future is not guaranteed. (3) "The FOF and direct route are taxed differently." Post-April-2025, both are non-equity: 12.5% after 24 months, slab below.

The Dominant Risks

Rates, Currency & Compliance

Interest-rate sensitivity is the biggest market risk — the 2022-23 US cycle cut the FTSE EPRA/NAREIT Developed Index ~25% from peak. Currency cuts both ways. And multi-country FTC and Form 67 filings make professional CA support advisable for direct holders.

12.5%

LTCG rate

After 24 months

25%

US WHT

W-8BEN; else 30%

$250k

LRS cap

20% TCS > ₹10L

Investor FAQ

Questions Indian Investors Ask

Six questions, answered directly.

Investor FAQ · Page 12

Frequently Asked Questions

Q1 Are Global REITs better than Indian REITs?

They serve complementary purposes rather than one beating the other. Indian REITs (Embassy, Mindspace, Nexus, Brookfield) give INR-denominated income from Indian office and retail property, with LTCG at 12.5% after 12 months and the ₹1.25 lakh exemption. Global REITs open up data centres, cell towers, logistics and healthcare real estate — property types India's market does not yet offer — plus geographic diversification. Indian REITs are simpler to hold and tax; Global REITs add diversification with more compliance. Many investors hold both.

Q2 How much tax will I pay on dividends from a US REIT?

The US withholds 25% at source if you have filed Form W-8BEN with your broker (30% if you have not). In India the full pre-withholding dividend is added to your income and taxed at your slab rate as Income from Other Sources. You claim the 25% US withholding as a Foreign Tax Credit by filing Form 67 before your ITR. If you are in the 30% bracket you pay roughly 5% more in India; in a lower slab the credit may fully cover your Indian tax on that dividend.

Q3 Is Singapore a better option to avoid dividend withholding tax?

Yes, on withholding. Singapore imposes zero withholding tax on S-REIT distributions to foreign investors, so there is no foreign tax to manage or credit. The dividend is still taxable in India at your slab rate. The trade-off is that S-REITs typically yield less than US REITs and Asia-Pacific property cycles differ from US cycles, so it is a compliance simplification rather than automatically a higher return.

Q4 What is the LRS process to buy Global REITs directly?

Open an account with an authorised international brokerage platform (Vested, Interactive Brokers, INDmoney, Groww Global, Stockal). Remit funds from your Indian bank under the Liberalised Remittance Scheme, up to USD 250,000 per financial year, using the overseas-investment purpose code. Your bank collects 20% TCS on remittances above ₹10 lakh in the year — recoverable against your tax when you file. Then buy REIT shares or ETFs. File Form W-8BEN with the broker so US dividends are withheld at the 25% treaty rate, not 30%.

Q5 Is the Kotak International REIT FOF a good option for simplicity?

It is the simplest route operationally — no LRS, no international broker, no Form W-8BEN and no Schedule FA. You invest in INR from a ₹100 minimum and receive standard Indian tax statements. The trade-offs are a two-layer expense ratio, an Asia-Pacific focus rather than a truly global one, and taxation as a non-equity fund: LTCG at 12.5% only after 24 months, short-term gains at slab. It is a reasonable no-hassle entry point; larger allocations usually get better economics via the direct LRS route.

Q6 What must I declare in my ITR if I hold Global REITs?

Foreign REIT units held in an overseas brokerage account must be declared under Schedule FA of ITR-2 or ITR-3 — whether or not you earned income — using calendar-year figures for peak value, closing value and dividends. Report gains on sale under Capital Gains (12.5% LTCG if held 24 months or more, slab STCG if shorter) and file Form 67 before the ITR due date to claim Foreign Tax Credit on withholding paid abroad. Non-disclosure attracts a penalty of ₹10 lakh per year under the Black Money Act. FOF units held on an Indian platform are domestic assets and need no Schedule FA.

Key Terms & Definitions

REIT (Real Estate Investment Trust)

A company that owns and operates income-producing real estate and is legally required to distribute at least 90% of its taxable income to shareholders as dividends. Because it lists on an exchange, it makes property ownership as liquid as holding a share. A Global REIT is simply one listed on a foreign exchange.

Liberalised Remittance Scheme (LRS)

The RBI framework allowing a resident individual to remit up to USD 250,000 per financial year abroad for permitted purposes, including overseas investment. Remittances above ₹10 lakh in aggregate attract 20% TCS, which is adjustable against income tax when filing.

Form W-8BEN

A one-time declaration filed with a US broker confirming non-US tax residency. It reduces US dividend withholding on REIT distributions from the default 30% to the 25% India-US treaty rate. Without it, an extra 5% is withheld on every dividend.

Foreign Tax Credit (FTC)

A credit under Section 90 for tax already withheld abroad, claimed in India by filing Form 67 before the ITR due date. It offsets Indian tax on the same income but cannot exceed the Indian tax payable on it — surplus foreign tax is not refunded in cash.

Schedule FA

The Foreign Assets schedule of ITR-2 and ITR-3, where overseas holdings — including foreign REIT units — must be disclosed using calendar-year peak value, closing value and income, whether or not income was earned. Non-disclosure carries a ₹10 lakh penalty per year under the Black Money Act.

Non-Equity (Specified) Fund

Under Section 50AA, a fund with under 35% domestic equity — including international REIT FOFs. From April 2025, long-term gains (held 24 months or more) are taxed at 12.5% without indexation; shorter holdings at the investor's slab rate.