Renting out property in Kuwait while living in India
Kuwait's rules for a landlord living in India: ownership, the rent agreement, who withholds tax, and how the rent reaches you.
The short answers
- Can I own property in Kuwait?
- A citizen of Kuwait living abroad: Yes. A Kuwaiti living abroad buys like any citizen.
- A foreign national: No. A non-GCC foreigner cannot own land or a home in Kuwait. Decree-Law 7 of 2025 opened ownership only to companies, funds and portfolios listed or licensed in Kuwait, not to individuals. A foreigner's route to Kuwaiti rent is a long lease or a share in a listed vehicle, both outside this guide.
- Does the rent agreement need registering?
- No registration threshold. Notarisation is a choice the parties make at signing.
- Who withholds tax on the rent, and how much?
- No withholding at source. No. Kuwait has no personal income tax, no property tax and no tax on rent for any individual, resident or not.
- How does the rent reach me in India?
- Kuwaiti banks open accounts for residents with a civil ID; a non-resident owner usually receives rent through a representative or a GCC bank.
- No exchange controls and no limit on transfers. Cash at an exchange house is capped per day; above that, transfers go through a bank account and need the Kuwait Mobile ID for online remittance.
- No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad.
Because you are a citizen of
These follow your passport, wherever you live and wherever the property is.
Renting out property in Kuwait
What applies because the property is in Kuwait, whoever owns it.
Who may own residential property
| Citizens living in the country | Allowed Anywhere. |
|---|---|
| Residents of any nationality | Not allowed Residency gives no right to buy. The one exception under Decree-Law 74 of 1979 is a national of another Arab country, resident for ten years with a clean record, who may be granted one home of up to 1,000 square metres for the family's own use by a specific decree; it is rarely used. |
| Citizens living abroad | Allowed A Kuwaiti living abroad buys like any citizen. |
| Foreign nationals living abroad | Not allowed A non-GCC foreigner cannot own land or a home in Kuwait. Decree-Law 7 of 2025 opened ownership only to companies, funds and portfolios listed or licensed in Kuwait, not to individuals. A foreigner's route to Kuwaiti rent is a long lease or a share in a listed vehicle, both outside this guide. |
More on ownership
- Barred outright
- Every non-GCC individual, with the narrow Arab-resident exception above.
- Inheritance and gifts
- A non-Kuwaiti who inherits Kuwaiti property must sell within two years unless entitled to own; since 2025 an Arab national inheriting from a Kuwaiti mother is exempt from the forced sale. No inheritance tax.
- Owning through a company
- Only a company listed on Boursa Kuwait, a licensed real estate fund or a regulated portfolio may hold property with foreign owners, under Decree-Law 7 of 2025. Outside this guide.
Letting it out from abroad
- May a non-resident owner let it
- Yes, for the Kuwaitis and GCC nationals who can own; residency is not required to let.
- Licences, permits, landlord registration
- None for a long-term let.
- Local agent or representative
- In practice yes. Notarisation, rent certificates on the Sahel app and the rental court all assume a civil ID holder on the ground.
The rent agreement
- Written agreement required
- Yes. Decree-Law 35 of 1978, as amended by Decree-Law 95 of 2024, requires a written lease signed by both parties stating the rent and its due date.
- Mandatory standard form
- None mandatory. Ministry of Justice notarisation adds an executive formula that lets a landlord enforce unpaid rent without a full trial.
- Language
- Arabic governs; bilingual leases are common.
- Registry
- None for an ordinary tenancy. Notarisation at the Ministry of Justice is optional and worth having.
- When registration is required
- No registration threshold. Notarisation is a choice the parties make at signing.
- Who registers
- Either party can request notarisation; both sign before the notary, in person or through an attorney with a notarised Power of Attorney.
- Registration cost
- A small Ministry of Justice fee for notarisation.
- If it is not registered
- None for an unnotarised lease; it is still valid, but unpaid rent then needs a judgment from the rental judge rather than direct enforcement.
- Stamp duty
- None.
- Notarisation and witnesses
- Optional notarisation at the Ministry of Justice, which since 2024 makes the lease directly enforceable for arrears once the tenant has been notified and a non-payment certificate is issued.
- E-signature
- Recognised under the Electronic Transactions Law No. 20 of 2014; the Kuwait Mobile ID app signs for citizens and residents. Notarisation itself is still done at the Ministry.
- The usual term
- One year, renewed. Rent certificates and key-deposit certificates are issued through the Sahel app.
Rules the agreement must respect
- Deposit
- No statutory cap. One month's rent is usual; the Sahel app issues a deposit certificate that both sides can rely on.
- Rent increases
- Not for five years from the contract date or the last increase, and then only by agreement or by the rental judge where the rent is well below the market.
- Notice periods
- Set by the law according to the term and the rent period, from fifteen days to two months; a landlord may end a lease only on the statutory grounds.
- Disputes
- A single rental judge at the Court of First Instance, under the 2024 amendment, with the notarised lease enforceable directly for arrears.
- Mandatory disclosures
- Not applicable
Tax when the landlord lives abroad
- Is the rent taxed here
- No. Kuwait has no personal income tax, no property tax and no tax on rent for any individual, resident or not.
- Withholding at source
- No
- Withholding rate
- Not applicable
- Who withholds
- Not applicable
- What the tenant must register
- Not applicable
- How to reduce it
- Not applicable
- Filing and tax ID
- None for an individual.
- VAT or GST on rent
- None. Kuwait has not introduced VAT.
- Municipal and housing fees
- No annual property tax. Transfers carry a registration fee at the Real Estate Registration Department.
Money inside the country
- How tenants pay
- Bank transfer, KNET or cheque in dinars.
- Currency of rent
- KWD
- Bank account for a non-resident owner
- Kuwaiti banks open accounts for residents with a civil ID; a non-resident owner usually receives rent through a representative or a GCC bank.
- Paying rent to an overseas account
- Allowed. Nothing requires a local account, though cheques and the Sahel certificates assume one.
- Taking rent out of the country
- No exchange controls and no limit on transfers. Cash at an exchange house is capped per day; above that, transfers go through a bank account and need the Kuwait Mobile ID for online remittance.
Living in India
What India asks of its residents who own and let property abroad.
Owning property abroad from here
- Buying abroad
- Allowed under the Liberalised Remittance Scheme: up to USD 250,000 per person per financial year, which relatives may pool for one property. Also by inheritance, by gift from a resident who owned it lawfully, or from income already held abroad.
- Reporting foreign assets and accounts
- Every resident reports foreign property, accounts and the income from them in Schedule FA of the annual return, with the rent itself in Schedule FSI. Leaving it out is penalised under the black money law.
- Tax at home on foreign rent
- Residents are taxed on worldwide income, so foreign rent is taxed in India at slab rates after the standard deduction. Tax paid abroad is credited through Form 67, filed before the return, under the treaty with that country or unilaterally where there is none.
- Bringing rent home
- No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad.
- Digital identity for e-signing
- Aadhaar eSign signs any Indian document and a growing number of foreign platforms accept it. Where it is not accepted, a certificate-based digital signature from an Indian certifying authority, or the foreign platform's own e-signature, does the job.
Between India and Kuwait
What applies to this pair of countries in particular.
- Tax treaty between the two countries
- Yes
- Withholding under the treaty
- Not applicable: Kuwait withholds nothing and taxes nothing. With nothing to credit, the rent is simply Indian-taxable income at slab rates.
- The usual vehicle for this corridor
- Not available to most Indians: only Kuwaitis and GCC nationals own a home in Kuwait. An Indian who inherits or holds one through a listed vehicle lets through a representative in Kuwait.
- Banking blocks
- Ownership itself is the block. Where rent does arise, dinars move to India by bank transfer with no Kuwaiti restriction and no Indian inbound limit; declare the rent and the account in Schedule FA.
- What most people do
- Not buy. Indians in Kuwait rent there and invest at home.
Sources
- Ministry of Justice of Kuwait (lease notarisation and the rental court) — www.moj.gov.kw
- Central Bank of Kuwait: the CBK law and foreign exchange supervision — www.cbk.gov.kw
- US Department of State: Kuwait investment climate statement (real estate ownership and remittance rules) — www.state.gov
- Prime Minister of India: the protocol amending the India–Kuwait tax treaty — www.pmindia.gov.in
- RBI Master Direction: Acquisition and Transfer of Immovable Property under FEMA — www.rbi.org.in
- Ministry of External Affairs: acquisition and transfer of immovable property in India by NRIs and OCIs — www.mea.gov.in
- RBI FAQ: Accounts in India by Non-residents (NRE, NRO, current income) — www.rbi.org.in
- RBI FAQ: Remittance of Assets (the USD 1 million limit) — www.rbi.org.in
- RBI FAQ: Liberalised Remittance Scheme — www.rbi.org.in
- RBI FAQ: Purchase of immovable property outside India — www.rbi.org.in
- Income Tax Department: TDS rates, including section 195 for non-residents — www.incometaxindia.gov.in
- Income Tax Department: Form 13, certificate under section 197 for a lower or nil rate — www.incometaxindia.gov.in
- Income Tax Department: Form 15CA, remittance to a non-resident — www.incometaxindia.gov.in
- Income Tax e-filing portal: Form 67 FAQ, foreign tax credit — www.incometax.gov.in
- Income Tax e-filing portal: guide to Schedules FA, FSI and TR — www.incometax.gov.in
- The Registration Act, 1908 (Delhi Revenue Department copy), section 17 on leases — revenue.delhi.gov.in
- MeitY: The Information Technology Act, 2000 (sections 3, 3A and 10A) — www.meity.gov.in
- UIDAI: enrolment and update, who may enrol — uidai.gov.in
- UIDAI: NRI Aadhaar enrolment — uidai.gov.in
- PIB: Model Tenancy Act, states that have adopted it (25 July 2022) — www.pib.gov.in
- PIB: draft Model Tenancy Act, the security deposit cap (11 July 2019) — www.pib.gov.in
- StockHolding e-Stamping, the Central Record Keeping Agency — www.shcilestamp.com
- IGR Maharashtra: leave and licence e-registration and stamp duty — igrmaharashtra.gov.in
- GST Council: Notification 12/2017-Central Tax (Rate), exemption for residential dwellings — gstcouncil.gov.in
- CBIC: Notification 04/2022-Central Tax (Rate), renting to a registered person — cbic-gst.gov.in
- Controller of Certifying Authorities: digital signature certificates — cca.gov.in
- Delhi Police: citizen services, including tenant registration — delhipolice.gov.in