Karisma Kapoor Refused Portuguese Citizenship for Her and Kids

(INDIA) Karisma Kapoor declined Portuguese citizenship for herself and her two children because it would have forced them to surrender their Indian passports, her lawyer said, as a high-stakes inheritance case over the late industrialist Sunjay Kapur’s estate intensifies in court. The refusal sits at the heart of a legal fight that now ties citizenship choices to the future division of overseas assets reportedly worth Rs 31,000 crore and possible exposure to foreign inheritance taxes.

Karisma Kapoor’s legal team argues that the timeline raises hard questions. They say Sunjay Kapur signed a will in March 2025 that excluded the children he shared with Karisma from inheriting overseas properties, leaving those assets to his widow, Priya Sachdeva Kapur. Yet, in May 2025, two months later, he was still trying to arrange Portuguese citizenship for Karisma and their children.

According to the lawyer, that push would have shielded the children from inheritance tax on properties held outside India because Portugal does not impose such a tax. The move, they argue, clashes with the will’s terms and creates a “suspicious circumstance” that the court should weigh carefully.

Citizenship trade-off at center of the estate fight

The core trade-off is simple but heavy: India does not allow dual citizenship, while Portugal does. Taking Portuguese citizenship would have required Karisma and the children to renounce Indian citizenship first. Her lawyer, Mahesh Jethmalani, said she refused for that reason.

For many Indians, giving up citizenship is a deeply personal step with daily impact — from property rights and employment to voting and identity. Even when possible tax relief is on the table, some families hold the line.

Portugal offers several paths to citizenship, including:

• Descent
• Naturalization after five years of legal residence
• Marriage to a Portuguese national after three years
• Investment programs (commonly called the Golden Visa)
• Special routes for those with Sephardic Jewish ancestry or connections to former Portuguese territories (like Goa)

Official guidance is provided by Portuguese authorities; readers can review procedures on the Portuguese government’s nationality services page for clear rules and routes to passport eligibility. For authoritative details, see the Portuguese government’s nationality services page at IRN – Nationality Services.

For Indian families, this kind of cross-border planning often runs into a hard legal wall. India permits Overseas Citizenship of India (OCI) — a long-term visa status — but not full dual citizenship. That means any Indian who takes another country’s citizenship must give up Indian citizenship, with lasting consequences.

In this case, Karisma Kapoor chose to keep Indian citizenship even though Portuguese citizenship could have helped reduce overseas tax exposure if the children ultimately received foreign assets.

Tax planning versus national identity

The tax angle matters. Portugal does not levy inheritance tax, a feature that has shaped many estate plans involving assets in Europe. According to analysis by VisaVerge.com, families sometimes consider Portuguese citizenship as a tool to lower or avoid inheritance taxes abroad — especially when estates include real estate, company shares, or investment portfolios in tax-heavy jurisdictions.

In the Kapur case, the lawyer says Sunjay’s push for Portuguese citizenship would have aligned with that strategy if the children were expected to hold or inherit overseas assets.

But the reported March 2025 will, which the family is challenging in court, undercuts that logic by cutting the children out of overseas inheritances. Karisma’s side is using the May 2025 citizenship efforts to question the will’s intent and timing, alleging that the document may be forged or does not reflect Sunjay’s true plans for his heirs.

The case, ongoing as of September 2025, will likely hinge on both:

1. Document integrity (authenticity of the will)
2. Credibility of surrounding actions, including the citizenship push

Possible outcomes and tax consequences

The practical outcomes for the children differ sharply depending on how the court rules:

• If the will stands in full, and overseas assets remain directed to the widow, Portuguese citizenship would not affect the children’s share of those properties.
• If the will is set aside or read differently, and the children do receive overseas assets, then their Indian citizenship may expose them to inheritance taxes in certain jurisdictions, depending on:
  • Where the assets are located
  • The heir’s residency or domicile
  • Relevant tax treaties

Estate planners often layer holding companies, trusts, and residency strategies on top of citizenship choices to navigate these cross-border rules.

Practical guidance for families considering similar moves

Citizenship strategy is not a one-size-fits-all fix. Families consider more than tax — identity, domestic rights, travel, and future plans for children’s study and work all matter. Surrendering Indian citizenship closes certain doors while opening others, and not everyone accepts that trade.

Lawyers commonly recommend the following steps:

1. Map assets by country and type:
   • Real estate, equities, business shares, bank accounts
2. Check tax rules for both:
   • Asset location
   • Heir’s residency or domicile
   • How double-tax treaties apply
3. Separate citizenship from residency:
   • Tax relief sometimes comes from residency or domicile changes rather than new citizenship
4. Explore non-citizenship tools:
   • Lawful trusts, wills that comply with each country’s rules, corporate structures
5. Weigh long-term life plans:
   • Schooling, careers, and elder care often matter more day-to-day than tax savings

Broader context and potential legal implications

Karisma’s decision underscores the weight of identity and continuity for many Indian families. Her lawyer’s stance suggests the family will keep pressing the courts to test the will and put the May 2025 citizenship efforts on the record as context for Sunjay’s true intentions.

The outcome may shape not only how the Kapur estate is divided, but also how wealthy Indian families weigh foreign passports against home ties when planning for global assets.

Portugal remains a popular option due to its relatively flexible residence-to-citizenship track and historic links that make some Indians eligible through ancestry connected to former Portuguese territories. Yet the legal rule that matters in India is unchanged: taking a new citizenship means giving up Indian citizenship.

For families who want mobility but do not want to surrender their passports, alternatives include long-term visas, residence permits, and student routes — often serving as middle paths.

The court will hear claims of forgery and test competing readings of what Sunjay Kapur wanted for his heirs. The reported effort to secure Portuguese citizenship two months after the will’s execution will likely be a focal point. If judges find that action inconsistent with the will’s terms, it could tilt the legal analysis. If not, the will may stand on its own, and the children’s Indian citizenship will remain a personal choice that carried tax trade-offs they accepted.

For now, Karisma Kapoor’s position is clear: she and her children will keep their Indian passports. The legal and tax consequences will depend on what the court decides about the will, the ownership of overseas assets, and the reach of foreign tax rules.

Families watching this dispute can draw a simple lesson — before chasing a passport for tax reasons, measure what you might have to give up.