How to Buy Property in Dubai from India
An Indian resident can send USD 250,000 abroad in a financial year — about AED 918,000. That one limit shapes almost every Dubai purchase made from India: it decides whether a flat is bought alone or with a spouse, in one year or three, and it is the reason the 60/40 and 70/30 payment plans that Dubai developers offer suit Indian buyers better than a cash purchase does.
Buying itself is straightforward. Indians are the largest single group of foreign buyers in Dubai, ownership in the freehold areas is outright with the title deed in your own name, and no residency or local partner is needed. The work is on the Indian side: the remittance route, the tax collected at source, and what you disclose in your return afterwards.
Key Takeaways
- LRS gives every resident individual USD 250,000 per financial year — including minors, so a family of four has four allowances.
- TCS applies above ₹10 lakh of total LRS remittance in a tax year, at 20% on the excess for an investment purpose such as property. It is creditable against your tax liability, not a cost.
- Purpose code S0005, Indian investment abroad in real estate, with Form A2 and an LRS declaration on every transfer.
- Payment plans solve the limit. A 60/40 plan on an AED 1.5 million flat spreads the money across years, each inside one allowance.
- Declare it. Foreign property goes in Schedule FA of your return, and the rent is taxable in India as income from house property with the 30% standard deduction.
What the limit buys, in one year and in three
| Buyers | One financial year | Two years | Three years |
|---|---|---|---|
| One person | USD 250,000 ≈ AED 918,000 | AED 1.84 M | AED 2.75 M |
| Couple | AED 1.84 M | AED 3.67 M | AED 5.51 M |
| Couple + 2 children | AED 3.67 M | AED 7.35 M | AED 11.0 M |
Read against the entry prices on projects we track, one person's single-year allowance covers a JVC studio at AED 556,500 or a Dubai South unit at AED 600,000 outright, fees included. A couple in one year reaches the Dubai Hills entry at AED 1.12 million comfortably, and gets within reach of the AED 2 million Golden Visa threshold in the second year.
The TCS, and why it is not a cost
Tax collected at source applies once your LRS remittances pass ₹10 lakh in a tax year: 20% on the amount above that line for an investment purpose. On a ₹90 lakh remittance, TCS is 20% of ₹80 lakh — ₹16 lakh collected by the bank at the time of transfer.
That money is not lost. It is credited against your income tax liability for the year and refunded if it exceeds it. What it does cost is cash flow: ₹16 lakh sits with the government until your return is processed. Buyers who plan around it either split remittances across two financial years, or set the TCS aside as part of the budget rather than discovering it at the bank counter.
The order of operations
- Choose the unit and get the payment schedule in writing — the amount due at booking and the date of every instalment after it.
- Check the schedule against your allowances. Which cheque falls in which financial year, and whose allowance pays it.
- Remit through an authorised dealer bank with Form A2, the LRS declaration and purpose code S0005. Expect the bank to ask for the sale and purchase agreement or booking form.
- Pay the 4% DLD fee, usually with the booking. It is calculated on the full contract value, not the amount paid so far.
- Register on Oqood for an off-plan unit, or take the title deed at a trustee office for a ready one. A notarised, apostilled power of attorney lets an agent do this while you stay in India.
- Keep the paperwork — remittance advices, A2 forms, the SPA, the Oqood or title deed. Schedule FA is filed from it.
Rupee figures, on your own numbers: the fees, the cash you need on day one and the rent it earns, before the Indian tax the next section deals with.
Dubai property calculator — costs, cash needed and net rent
Works from any country: pick your currency, or type your own rate. Fees follow the DLD schedule; rent figures are yours to set.
| Charge | AED | Your currency |
|---|
Fee basis: DLD transfer 4% of price, plus a DLD admin fee of AED 580 on a ready unit and AED 40 at Oqood on an off-plan one; registration trustee AED 4,000 below AED 500,000 and AED 4,200 above, plus 5% VAT; title deed and map about AED 500; agency 2% plus 5% VAT where used; mortgage registration 0.25% of the loan plus AED 290. Rates shown are indicative, read on 9 September 2026, and the pegged ones (USD and the GCC currencies) do not move — edit the rate box for anything else. This is an estimate to plan with, not a quotation, and it does not cover tax in your own country.
What you owe in India afterwards
- Schedule FA. Foreign assets are disclosed in your return every year you hold them. The penalty regime for non-disclosure is severe, and the disclosure itself costs nothing.
- Rent. Taxable in India as income from house property, with the 30% standard deduction, at your slab rate. The UAE taxes neither the rent nor the gain, so there is no foreign tax to credit against it.
- Capital gain on sale. Taxable in India on the rupee gain. The UAE charges nothing, so the whole liability is Indian.
- Repatriation. Sale proceeds and rent can be brought back through normal banking channels; keep the audit trail from the original remittance so the source is documented.
None of this is unusual or difficult, and none of it is optional. Take it to a chartered accountant before the first remittance rather than at the end of the year.
Where Indian buyers get caught
- Treating the LRS limit as a per-transaction limit. It is cumulative across the financial year and across all purposes, including travel and education.
- Forgetting the 4% is due on the whole price at booking, which pushes the first year's remittance well past the booking amount.
- Missing the TCS in the cash plan and being short at the bank on the day.
- Buying just under AED 2 million and losing the Golden Visa for the sake of a few lakh — the threshold is on the Land Department's valuation, and it is worth asking which unit clears it before booking. See the Golden Visa guide.
- Assuming rupee returns. The dirham is pegged to the dollar, so your return in rupees carries the dollar-rupee move — which has run in Indian buyers' favour for years and is not guaranteed to.
- Skipping the will. Without a DIFC or Dubai Courts will, a non-Muslim owner's UAE estate can be distributed under Sharia principles regardless of an Indian will.
Dubai against an Indian second home
| Dubai apartment | Indian metro apartment | |
|---|---|---|
| Purchase costs | About 6% – 7% | Stamp duty and registration, typically 6% – 8% |
| Annual property tax | None | Municipal property tax |
| Gross yield | 5% – 9.5% depending on community | Commonly 2% – 4% in the big cities |
| Recurring cost | Service charge AED 10 – 32/sq ft | Society maintenance |
| Tax on rent | Indian slab rate, no UAE tax | Indian slab rate |
| Currency | Dirham, pegged to the dollar | Rupee |
| Residency | Ten-year visa at AED 2 million | n/a |
The yield gap is the honest reason most of this traffic moves in one direction. The counterweight is that a Dubai purchase is an overseas asset with a remittance limit, a disclosure obligation and a market that fell about 2.6% quarter on quarter in the second quarter of 2026 against a heavy delivery schedule. Buy it on the rent and the community, as covered in yields by area.
FAQ
Can an Indian citizen buy property in Dubai?
Yes, freehold in the designated areas, with the title deed in your own name. No UAE residency, no local partner and no minimum purchase. The limits that apply are Indian ones on sending money out, not Emirati ones on buying.
How much money can I send to Dubai to buy property?
USD 250,000 per resident individual per financial year under the Liberalised Remittance Scheme — about AED 918,000. Every individual has their own allowance, including minors, so a family can combine several.
What is the TCS on buying property in Dubai?
20% on LRS remittances above ₹10 lakh in a tax year for an investment purpose. It is collected by the bank at the time of transfer and credited against your income tax liability, so it is a cash flow cost rather than a tax cost.
Do I pay tax in India on Dubai rental income?
Yes. Rent from a Dubai property is taxable in India as income from house property with the 30% standard deduction, at your slab rate. The UAE taxes neither rent nor capital gains, so there is no foreign tax credit to claim.
Do I have to declare Dubai property in my Indian tax return?
Yes, in Schedule FA, every year you hold it. Non-disclosure of a foreign asset carries heavy penalties, and the disclosure itself costs nothing.
Do I need to travel to Dubai to complete the purchase?
No. A notarised and apostilled power of attorney, attested in the UAE with an Arabic translation, lets a lawyer or agent sign and register on your behalf. Only a mortgage application and a Golden Visa medical normally need you there in person.
Project pages with the price in AED, dollars and rupees are in the Dubai section. For the purchase fees, see the cost of buying property in Dubai; to start at the beginning, the buyer's guide to Dubai.
