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🇨🇦 Canada

SGB for NRIs in Canada

Understanding Sovereign Gold Bond rules for Indians in Canada

NRIs Cannot Invest in SGBs

As per FEMA (Foreign Exchange Management Act) regulations, Non-Resident Indians are NOT eligible to purchase Sovereign Gold Bonds, whether through primary market or secondary market (stock exchanges).

**Can NRIs in Canada invest in Sovereign Gold Bonds?**

**No**. Indo-Canadians who qualify as NRIs cannot invest in SGBs due to FEMA restrictions.

**Canada-specific considerations:** - Canada taxes worldwide income including foreign gold investments - RRSP/TFSA can provide tax shelter for investments - CRA requires reporting of foreign assets over CAD 100,000

Key Points for NRIs in Canada

NRIs in Canada CANNOT purchase SGBs under FEMA

Canada taxes capital gains at 50% inclusion rate

TFSA/RRSP can shelter gold ETF investments

Report Indian assets over CAD 100,000 to CRA (Form T1135)

Consider Canadian Gold ETFs for tax efficiency

Alternative Gold Investments for NRIs

Canadian Gold ETFs

Available

Gold ETFs on TSX (iShares, Sprott, etc.)

CAD denominated, can be held in TFSA/RRSP

Indian Gold ETFs

Available

Gold ETFs through NRI demat account

INR exposure, CRA reporting required

Physical Gold

Available

Gold from Canadian dealers

Sales tax may apply depending on province

Sovereign Gold Bonds

Not Allowed

Government of India gold bonds

NOT allowed for NRIs under FEMA

Tax Implications for Canada Residents

  • Canada taxes 50% of capital gains
  • TFSA/RRSP can shelter gains on eligible investments
  • T1135 required for foreign assets over CAD 100,000
  • India-Canada DTAA prevents double taxation
  • Interest from India taxable in Canada

Important Disclaimer

**IMPORTANT DISCLAIMER:** 1. **NRIs CANNOT invest in Sovereign Gold Bonds (SGBs)** as per FEMA (Foreign Exchange Management Act) regulations. This applies to both primary market (RBI issues) and secondary market (stock exchanges). 2. If you became an NRI after purchasing SGBs as a resident Indian, you may continue to hold them until maturity but should consult a tax professional regarding implications. 3. This information is for educational purposes only and does not constitute legal, tax, or investment advice. NRI regulations are complex and vary by country of residence. 4. Please consult a qualified CA, tax advisor, or legal professional familiar with FEMA regulations and your country's tax laws before making any financial decisions. 5. Information provided is based on our understanding as of 2026 and may be subject to change.

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Frequently Asked Questions

Yes, Canadian-listed gold ETFs can be held in TFSA for tax-free growth. This is one of the most tax-efficient ways to invest in gold in Canada.
Yes, if your total cost of specified foreign property exceeds CAD 100,000, you must file Form T1135. This includes Indian Gold ETFs held in NRI accounts.

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