Dubai · guide
Buying Dubai property from India
A resident Indian can buy freehold property in Dubai by sending their own money under the RBI's Liberalised Remittance Scheme, up to USD 250,000 per person per financial year. Banks collect 20% TCS above ₹10 lakh, which you can adjust against your income tax. Budget roughly 4–7% on top of the price for Dubai fees, more on resale homes, and report the property in your tax return every year.
Who can buy, and where
Foreign nationals, including Indians living in India, can buy freehold property in Dubai's designated freehold areas, such as Downtown Dubai, Business Bay, Dubai Marina, Jumeirah Village Circle and Dubai Hills Estate. You do not need a UAE visa or residency to buy.
On the Indian side, the RBI permits resident individuals to buy property abroad using remittances under the Liberalised Remittance Scheme (LRS). No separate RBI approval is needed when the purchase stays within the scheme's conditions.
How much you can send: the LRS limit
- USD 250,000 per person per financial year (April to March), sent through your bank (an authorised dealer).
- The limit is shared with all your other LRS remittances in the year: foreign travel, overseas investments, gifts. Subtract what you have already used.
- Family members can combine their limits, if they are resident relatives who meet the scheme's conditions. Each person who sends money should be a co-owner of the property.
- Use your own funds. The remittance cannot be funded with a bank loan taken for the purpose.
At current exchange rates, one person's limit is a little over ₹2 crore. A ₹2 crore apartment plus fees is close to that ceiling for a single buyer, so many families buy as two co-owners. A Golden Visa purchase at around ₹4.5 crore needs at least two or three co-owners, or payments spread over more than one financial year (see the note on payment plans below).
TCS on your remittance
Banks collect tax at source (TCS) on LRS remittances. For investment purposes, including property, the rate is 20% on the amount above ₹10 lakh in a financial year, counted across all your remittances.
| You send in a year | TCS collected |
|---|---|
| ₹10 lakh | Nil |
| ₹50 lakh | ₹8 lakh (20% of ₹40 lakh) |
| ₹1 crore | ₹18 lakh (20% of ₹90 lakh) |
TCS is credited to your PAN. You can see it in Form 26AS and your Annual Information Statement, and it is adjusted against your tax, or refunded, when you file your return. It ties up cash for a few months, so plan for it.
Off-plan payment plans from India
Most Dubai off-plan projects are sold on payment plans: a booking amount, then instalments during construction, and a final payment at handover. Your payments go into a project escrow account regulated by Dubai's Real Estate Regulatory Agency, and the developer can only draw money as construction progresses.
Check this before you book. Whether a resident Indian can pay for overseas property in instalments under LRS is a question on which advisers disagree. The RBI's FAQs confirm you can buy property abroad from LRS remittances but do not address payment schedules. Some chartered accountants advise that a resident should not commit to a deferred-payment purchase. Ask your bank to confirm in writing how it will treat each instalment before you sign, and have your CA review the payment schedule.
The full cost of buying, in rupees
Dubai has no annual property tax or stamp duty, but buying carries one-time costs on top of the price.
| Cost | Typical amount | Paid to |
|---|---|---|
| Dubai Land Department transfer fee | 4% of the price | Dubai Land Department |
| Registration trustee fee | AED 2,000 + VAT (under AED 500,000) or AED 4,000 + VAT | Registration trustee |
| Title deed and admin fees | Roughly AED 500–1,000 | Dubai Land Department |
| Agency fee on resale homes | Usually 2% + VAT (new projects: usually paid by the developer) | Agent |
| Bank charges and exchange margin | Varies by bank; ask for the all-in rate | Your bank |
| TCS | 20% above ₹10 lakh; adjustable against tax | Income Tax Department |
After you own the property, budget for annual service charges, which vary widely by building, plus utilities and, if you rent it out, property management.
Tax and reporting in India
- Report the property every year in Schedule FA (foreign assets) of your income tax return while you are a resident. Leaving it out can attract penalties under the Black Money Act.
- Rental income from Dubai is taxable in India for a resident. The UAE does not tax personal rental income, so there is usually no foreign tax to credit.
- Capital gains on sale are taxable in India. The India–UAE tax treaty sets out which country can tax what; your CA will apply it.
Step by step
- Check your LRS headroom for the year, and decide who will co-own.
- Shortlist by goal, with the total cost and expected net rent for each option.
- Confirm the payment plan with your bank and CA before booking.
- Pay the booking amount from India to the developer's escrow account, quoting the property purchase purpose code.
- Sign the sale agreement and register it with the Dubai Land Department.
- Pay instalments or the balance through your bank, keeping every remittance record.
- Take handover, receive the title deed, and add the property to Schedule FA in your next return.
Frequently asked questions
How much money can I send from India to buy property in Dubai?
Up to USD 250,000 per person per financial year (April to March) under the Liberalised Remittance Scheme. The limit covers all your LRS remittances in the year, including travel and investments, so subtract anything you have already sent.
Is TCS charged on money sent for Dubai property?
Yes. Banks collect 20% TCS on LRS remittances above ₹10 lakh in a financial year. TCS is not an extra cost if you pay enough income tax: it is credited to your PAN and adjusted, or refunded, when you file your return.
Can my family pool their LRS limits?
The RBI allows remittances to be consolidated for relatives who are resident in India and meet the scheme's conditions. In practice, each family member who remits should be a co-owner on the title deed. Confirm the structure with your bank before you book.
Can I take a loan to buy property in Dubai?
LRS remittances must come from your own funds, and banks are not meant to give credit to fund capital-account remittances under the scheme. A UAE mortgage is a borrowing outside India, which resident Indians generally cannot take for this purpose. NRIs have more options. Check with your bank and CA.
Do I need to show Dubai property in my income tax return?
Yes. A resident Indian must report foreign assets, including property abroad, in Schedule FA of the income tax return every year, and pay Indian tax on rental income and capital gains, with credit under the India–UAE tax treaty where it applies.
Does buying Dubai property give me a Golden Visa?
A 10-year Golden Visa through property needs property worth at least AED 2 million, about ₹4.5 crore depending on the exchange rate. One or more properties can be combined, and approved off-plan units qualify.