How to Buy Property in Dubai from India: The Complete Buyer’s Guide
FEMA. LRS. TCS. Form A2. Oqood. Golden Visa.
If those words make you hesitate before buying a luxury apartment or penthouse in Dubai, you are not alone. From the outside, it looks like a maze of Indian and UAE rules.
In reality, it is a short sequence of clear steps. Each one has a defined rule and a defined document. Once someone lays out the route, it stops being intimidating. This guide lays it out for you.
CAN INDIANS BUY PROPERTY IN DUBAI?
Yes. Indian citizens can buy freehold property in designated areas of Dubai. Ownership is recorded in your name at the Dubai Land Department (DLD), and you receive a title deed like any other buyer. You do not need a UAE residence visa just to own property, and many buyers complete the purchase remotely. Property investment does not give you UAE citizenship.
FIRST, KNOW YOUR STATUS: RESIDENT OR NRI
The route you follow depends on where you live under Indian foreign exchange law.
📍 Resident of India: You use the Liberalised Remittance Scheme (LRS) from your Indian bank account. Most of this guide covers this route.
📍 NRI: LRS does not apply. You can fund the purchase from your NRE or FCNR account or from overseas income.
THE INDIA SIDE: FEMA AND LRS EXPLAINED
FEMA is India’s foreign exchange law. Under the Overseas Investment Rules, 2022, and RBI’s guidance, a resident individual can remit money under LRS to buy immovable property abroad. The key rules:
✅ Annual limit: Each resident individual can remit up to USD 250,000 per financial year (April to March), which is roughly ₹2.2 crore at recent exchange rates. Exchange rates change.
✅ Close relatives can combine limits: Limits of close relatives, such as spouse, parents, children and siblings, can be combined for a purchase. Friends and business partners cannot pool limits.
✅ Bank channels only: The money must go through an authorised bank. Cash, hawala and informal routes violate FEMA and have attracted Enforcement Directorate action.
✅ Your own funds: LRS cannot be funded with borrowed money, including a loan from a relative or friend.
✅ Above the limit: Going over USD 250,000 without approval breaches FEMA.
✅ Paperwork at the bank: You submit Form A2, your PAN and the purpose code for property investment abroad, which is S0005.
TCS: THE TAX THAT SURPRISES PEOPLE
TCS is Tax Collected at Source. Your bank collects it when you send money abroad. The rule now sits in Section 394 of the Income-tax Act, 2025.
✅ The first ₹10 lakh of LRS remittances in a financial year is free of TCS. This threshold is per individual, across all banks and purposes.
✅ Above ₹10 lakh, property and other investment remittances attract 20% TCS on the excess. The 2026 Budget cut the rates for education and medical remittances, but not this one.
✅ TCS is not an additional tax. You can adjust it against your tax liability or claim a refund when you file your return, but it does tie up cash until then.
Illustration: if you remit ₹1 crore, TCS is 20% of ₹90 lakh, which is ₹18 lakh. Keep that cash available in your account at the time of transfer. Rates and thresholds change often, so confirm them with your bank or CA before you remit.
AFTER YOU BUY: REPORTING IN INDIA
Owning Dubai property is legal, and Indian tax residents must report it.
🗂️ If you are a resident and ordinarily resident, declare the property in Schedule FA (Foreign Assets) of your return, even if it earns no rent. You need ITR-2 or ITR-3, because ITR-1 has no foreign asset schedule. Schedule FA follows the calendar year, not the financial year.
🗂️ Declare rental income in your Indian return. Dubai charges no tax on rent, so you pay at your Indian slab rate. The India-UAE tax treaty prevents double taxation, but with no UAE tax there is usually no credit to claim.
🗂️ Gains on sale are taxable in India for Indian tax residents.
🗂️ Failing to disclose can attract a ₹10 lakh penalty for each year under the Black Money Act. Unlike smaller movable assets, foreign immovable property has no value-based safe harbour. It must be declared however small.
THE DUBAI SIDE: WHAT IT COSTS
📌 DLD transfer fee: 4% of the purchase price, usually paid by the buyer
📌 Title deed fee: AED 580 for a ready apartment
📌 Trustee office fee: AED 4,000 plus 5% VAT for properties above AED 500,000
📌 Off-plan: The same 4% is paid at Oqood registration, unless the developer absorbs it
📌 Mortgage registration: 0.25% of the loan plus AED 290, if you take a loan
📌 Overall: Budget roughly 6% to 8% on top of the price, depending on whether you use a loan and the extras involved
Dubai has no annual property tax, but you pay ongoing service charges. Always ask for the full fee breakdown in writing before you sign.
DOCUMENTS YOU WILL NEED
For the Indian bank: 🗂️ Form A2 and PAN
🗂️ Purpose code S0005
🗂️ KYC documents and proof of source of funds
🗂️ The purchase paperwork your bank asks for
For Dubai:
🗂️ Valid passport copy
🗂️ Proof of address and KYC documents
🗂️ Proof of funds, such as bank statements, tax returns or a sale agreement
🗂️ For a ready property, the seller’s title deed, which your trustee and agent verify
🗂️ For off-plan, the developer, project, escrow and payment schedule documents
UAE authorities run strict anti-money-laundering and source-of-funds checks on high-value purchases. A clean paper trail from your Indian account is the safest way through them.
THE STEP-BY-STEP ROUTE
Set your budget within your LRS limit, including fees and TCS. Choose the property and area that fit your goals. Have the developer, project and seller verified. Reserve the unit and sign the sale agreement. Remit the funds from your bank under LRS, through the correct channel. Complete DLD registration and pay the fees. For ready property, this happens at the trustee office, and you receive the title deed. Report the asset in your Indian return and plan for rental or handover.
THE GOLDEN VISA: WHAT IT IS AND WHY INVESTORS WANT IT
The Golden Visa is a 10-year, renewable, self-sponsored UAE residency. Dubai property buyers can qualify.
✅ Threshold: Property worth at least AED 2 million, ready or off-plan. One owner can combine several properties to reach it.
✅ Mortgaged properties: These can qualify, with a bank NOC. Earlier cash-payment conditions have been relaxed, but the details have changed more than once.
✅ Off-plan: Properties from approved developers can qualify, subject to conditions.
✅ Joint ownership: Where a property has more than one owner, each applicant’s share generally needs to meet the AED 2 million threshold.
✅ Family: Holders can sponsor family members, including spouse and children, subject to GDRFA requirements.
✅ No employer sponsor: The visa is tied to you and your investment, and reports say there is no minimum stay requirement.
✅ Apply in person: Applications are generally made while you are inside the UAE, so plan a trip.
✅ Keep the property: If you sell and no longer meet the threshold, the visa can be affected.
Benefits in practice: long-term residency for you and your family, without an employer sponsor. Because the conditions for mortgaged and off-plan properties have been revised several times, confirm the current rules with the DLD before you rely on them. Also note that becoming a UAE resident can change your tax and FEMA status in India, so get advice before you move.
CAN YOU TAKE A LOAN?
UAE banks do lend to non-residents, but Indian foreign exchange rules do not allow LRS remittances to be funded with borrowed money, and residents generally cannot borrow abroad for overseas property. If you plan to use finance, speak to your bank or a FEMA adviser before you commit to a purchase.
FIVE MISTAKES TO AVOID
🚩 Sending money through informal channels
🚩 Forgetting TCS in your cash planning
🚩 Not reporting the property in your Indian return
🚩 Buying from an unverified developer, or paying outside the project’s escrow account
🚩 Relying on verbal promises about fees, handover dates or visa eligibility
HOW A TRUSTED REALTOR MAKES IT SIMPLE
None of these rules is complicated on its own. What makes the process feel heavy is having to juggle them alone, across two countries. That is where a good global realtor earns their place.
Here is what I handle for my clients:
✅ Shortlisting luxury apartments and penthouses that match your goals and budget
✅ Verifying the developer, the project registration and the escrow arrangements
✅ Mapping your purchase to your LRS limit and fees before you commit
✅ Preparing the document checklist for your bank and for Dubai
✅ Coordinating with your bank, CA and a licensed Dubai team so each step happens in the right order
✅ Staying with you through registration, handover and rental planning
Your bank handles the remittance, your CA handles your tax filings and a lawyer can review your contracts. A good realtor keeps all of them moving together, so you are never guessing what comes next.
FREQUENTLY ASKED QUESTIONS
Do I need to visit Dubai to buy? Not necessarily. Many Indian buyers complete the purchase remotely with a power of attorney or online signing. For the Golden Visa, you generally need to be in the UAE when you apply.
Is Dubai property tax-free? Dubai has no annual property tax, no tax on rental income and no capital gains tax for individuals. India still taxes your worldwide income if you are an Indian tax resident.
Does buying property give me citizenship? No. It can lead to residency, such as the Golden Visa, but not citizenship.
Can I buy with more than USD 250,000? Each resident can remit up to that limit each year. Close relatives can combine their limits, and payments can be staged across financial years, such as under an off-plan payment plan. Going above the limit without approval is a FEMA breach, and borrowed money cannot be used.
THE BOTTOM LINE
Buying in Dubai from India comes down to a clear route: stay within your LRS limit, remit through your bank, keep your paperwork clean, report the asset in India and choose a verified property. The rules look intimidating on paper. With the right guide beside you, they are a checklist.
Thinking of a luxury apartment or penthouse in Dubai? Message me before you move any money, and I will walk you through the full route.
Contact Samarth Khowal, REMAX Shree Vinayak & Co.
📞+91 9582627645 ✉️ [email protected] 🌐 realtyofindia.com
Disclaimer: This article is for general information and is not legal, tax or financial advice. FEMA, LRS, TCS, Dubai fees and visa rules change often, so confirm the current position with your bank, a chartered accountant and a licensed Dubai adviser before you buy.
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