Indians are the single biggest group of foreign buyers in Dubai. Data cited by Khaleej Times in July 2026 put them at about 20.6% of international purchasing activity, ahead of the British and Egyptians. But buying from India is not the same as an NRI buying from Dubai or London. If you live in India, the money has to leave under Indian rules first, and those rules decide how much you can send, how fast, and what you report every year after. Get them right and the purchase is straightforward. Get them wrong and the problem isn't in Dubai. It's at home.
The rule that shapes everything: LRS
Resident Indians send money abroad under the RBI's Liberalised Remittance Scheme (LRS). The limit is USD 250,000 per person per financial year (April to March). Buying residential or commercial property abroad is a permitted purpose. Agricultural land and farmhouses aren't.
That limit covers all your foreign remittances in the year, not just property. School fees for a child abroad, a foreign holiday, overseas investments, they all come out of the same USD 250,000.
Now look at it in dirhams. Because the dirham is pegged to the US dollar at 3.6725, USD 250,000 is about AED 918,000. So one person's full yearly LRS can't cover a AED 1 million apartment plus fees in a single year. That's why two things matter so much for Indian buyers:
- Family pooling. Family members can combine their LRS limits for one property, but reports and dealers are clear that each contributing member should be a co owner. A couple plus an adult child, all on title, could remit up to USD 750,000 in a year.
- Payment plans. Off plan projects with long installment plans spread the outflow over several financial years. Each year's payments draw on that year's limit. Confirm with your bank how they'll treat a multi year schedule before you sign.
You can't borrow in India to buy abroad
This catches people out. Funds remitted for property under LRS should be your own money. Taking a loan in India, including indirect routes like a loan against securities, to fund an overseas purchase isn't permitted and can attract scrutiny. Banks will ask for Form A2, your PAN and, for a first capital account remittance, often bank statements or proof of source of funds.
What about a Dubai mortgage? Some UAE banks lend to non residents, but approvals, rates and loan to value limits vary a lot, and Indian rules on servicing a foreign loan need checking with your bank and CA first. For most Indian buyers, the simplest route is their own funds plus a developer payment plan.
TCS: not a cost, but a cash flow hit
From 1 April 2026, remittances for purposes like overseas property attract 20% TCS on the amount above ₹10 lakh in a financial year. On a large remittance, that's a big chunk of money held back.
The good news: TCS is tax collected in advance, not an extra tax. You claim it against your income tax when you file, and get any excess back as a refund. Keep your Form 27D certificate. The bad news: it ties up your cash for months, so build it into your budget. If you're paying AED 100,000 as a down payment, you'll need the TCS on top at the time of transfer.
What Dubai charges you
The Dubai side is the same for every nationality:
- Dubai Land Department fee: 4% of the price plus admin charges.
- Agent commission on resale, commonly around 2% plus VAT.
- Service charges once the building is handed over. See our guide to Dubai service charges.
- Utility deposits and the housing fee if you move in or rent it out. Our DEWA guide explains what lands on the bill.
Dubai has no annual property tax and no personal income tax on rent. But that's where the good news ends for Indian residents.
The tax side at home
- Rental income from your Dubai property is taxable in India, because residents are taxed on worldwide income, whether or not you bring the rent home.
- Schedule FA: the property must be disclosed in your income tax return every year you own it, even if it earns nothing.
- Capital gains on sale are taxable in India, and sale proceeds must be brought back within the timeline under the Overseas Investment rules.
- Non disclosure of foreign assets can attract heavy penalties under the Black Money Act.
Honestly, this is the part I'd spend the most time on. Have a CA review the structure before you pay the booking amount, not after the first year's ITR is due.
A practical sequence
- Decide who will be on title, and therefore how much LRS headroom you have.
- Pick a project whose payment plan fits your yearly limit. Our SAMANA Downtown One breakdown shows how a 1% monthly plan spreads payments.
- Vet the developer and escrow account. See how to vet a Dubai developer.
- Remit through your bank under LRS, straight to the developer's escrow account, with Form A2 and the correct purpose code.
- Keep every document: A2, remittance advice, TCS certificate, SPA and receipts.
Before you commit, it's worth reading our honest look at the market in Dubai Q3 2026: crash or correction? If you'd like help matching a Dubai project to your LRS limits, message our Dubai team. This is general information, not legal or tax advice.
