Dubai property for Indian buyers.

Why Indian buyers favour Dubai

Indian buyers have moved from a meaningful share of the Dubai market to its largest single nationality cohort. The structural reasons are consistent across JRE's book:

• Proximity: nonstop flights from over a dozen Indian cities, two-and-a-half to four hours to DXB.
• Tax efficiency: zero UAE personal tax, AED-USD peg, and full freehold ownership for foreigners.
• Currency hedge: a USD-denominated property hedges INR depreciation, which has compounded around 3% to 5% annually against the dollar over the last decade.
• Golden Visa: AED 2M into a property delivers a 10-year residency for the buyer, spouse, children (no age cap) and parents.
• Familiar community: roughly one in three Dubai residents is of Indian origin, with established schools, places of worship, food, and professional networks.

The LRS: USD 250K per year

The Liberalised Remittance Scheme, governed by the Reserve Bank of India, allows resident Indian individuals to remit up to USD 250,000 per financial year for permitted capital and current account transactions, including the purchase of immovable property outside India.

Practical mechanics:

• The cap is per individual, per financial year (1 April to 31 March). A family of four can therefore pool up to USD 1 million per financial year.
• Funds are remitted from your AD-Category-1 bank to the UAE escrow account or developer account; you complete an A2 form and sometimes Form 15CA / 15CB.
• Title to the property must be in the remitter's personal name (or jointly with co-remitters); LRS does not permit corporate-route purchases without separate ODI approvals.
• For purchases above the LRS limit, NRIs and OCIs hold capacity outside the LRS framework; JRE often advises transitioning to NRI status before larger purchases.

FEMA reporting

The Foreign Exchange Management Act, 1999, and its 2015 amendments for property abroad, set the reporting framework. Buyers should be aware of:

• Form A2 filed with the AD bank at the time of remittance.
• FLA return (Foreign Liabilities and Assets) for certain entities holding overseas assets.
• Schedule FA in the Indian income tax return, disclosing foreign assets including overseas immovable property.
• 15CA / 15CB on certain remittances, certifying TDS position where applicable.

JRE works with Indian chartered accountants who specialise in cross-border real estate; we make introductions on request.

Repatriating capital and rent

Capital and income from a Dubai property are repatriable to India under FEMA, with normal banking channels:

• Rental income is repatriable in full; routing depends on residency status. NRIs typically use NRE accounts; residents repatriate to ordinary INR accounts after appropriate forex conversion.
• Sale proceeds are repatriable subject to LRS equivalent caps and FEMA reporting; for NRIs, repatriation is unrestricted within the FEMA framework.
• Currency conversion on AED-to-INR moves at AD-bank rates; rates and spreads vary across SBI, HDFC, ICICI, Axis and Kotak.

TCS on outward remittance

As of 2026, the Income Tax Act levies Tax Collected at Source on outward remittance under LRS:

• 20% TCS on amounts above the threshold for foreign-property purchases (the threshold is INR 7 lakh in aggregate per financial year).
• TCS is collected by the remitting bank at the time of remittance.
• TCS is creditable against your final income-tax liability when you file your ITR; it is a cashflow event, not a final tax.

For a buyer remitting USD 200,000 above the threshold, the 20% TCS is USD 40,000 at the time of remittance, recovered against the next ITR liability or refunded if no offsetting tax is due.

Mortgage options for Indian buyers

Indian non-residents can obtain UAE mortgages directly from local banks. Typical 2026 terms:

• Loan-to-value 50% to 60% for non-residents; up to 75% to 80% for UAE residents.
• Tenor up to 25 years.
• Fixed-rate products at 5% to 6.5% (one to five-year fix), variable at EIBOR + 1.5% to 2.5%.
• Documentation: passport, OCI / Indian PAN, last six months of statements, ITR for last two to three years, salary slips or business-income evidence, source-of-funds chain.

Common lender names in JRE files: Emirates NBD, Mashreq, ADCB, HSBC, Standard Chartered, RAKBANK. JRE makes warm introductions to relationship managers.

Tax in India and the UAE

The high-level position:

• UAE: zero personal income tax on rental income, zero capital gains for individuals, no annual property tax (service charges replace it).
• India, NRIs: UAE rental income generally not taxable in India for NRIs.
• India, residents: UAE rental income is included in Indian taxable income at slab rates, with credit for any UAE tax paid (currently zero), so the effective tax is normal Indian slab tax on gross UAE rent.
• Capital gains: Indian residents pay India capital gains tax on the AED-to-INR converted gain on sale of UAE property.

Specific facts vary by individual; always cross-check with an Indian chartered accountant before transacting.

Popular areas for Indian buyers

Golden Visa from India

An AED 2 million property purchase qualifies the buyer for a 10-year Golden Visa, including spouse, children with no upper age limit, and parents. The application file uses the DLD title deed plus a current DLD valuation certificate. The medical fitness test and biometric appointment are completed in Dubai (one to three working days). JRE coordinates the parallel visa file with the property purchase.

For Indian buyers using a UAE mortgage, the bank issues a no-objection letter for the visa (the upfront-equity requirement was removed in February 2026). The full breakdown is in our Golden Visa cost guide.

Logistics: flights, schools, banking

• Flights: nonstop daily from Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad, Cochin, Trivandrum, Pune, Lucknow, Goa, Coimbatore. Two-and-a-half to four hours.
• Schools: Dubai has the densest cluster of CBSE, ICSE and IB schools outside India, including Dubai Modern High, Indian High School, Delhi Private, GEMS Modern Academy.
• Banking: HSBC India, ICICI Bank UK / Bahrain branches, Bank of Baroda Dubai, SBI Dubai. NRE / NRO / FCNR account structures cover most repatriation needs.
• Healthcare: Aster, NMC, Mediclinic, Saudi German and Dubai London Clinic deliver world-class private healthcare in English.

Buying remotely from India

1. Initial brief with the JRE India desk (in Hindi or English).
2. Shortlist of three to seven properties, with full video tours and JRE inspection notes.
3. Issue a power of attorney through the UAE consulate in Mumbai / Delhi, apostilled in India for use at the trustee office.
4. Reservation or Form F MOU; deposit remitted under LRS through your AD bank.
5. Mortgage application (if financing); JRE introduces the relationship manager.
6. DLD transfer; JRE attends on POA. Title deed is issued the same day.
7. Golden Visa file lodged in parallel; medical and biometric appointment booked for your next Dubai trip.
8. Property management handover (long-let or short-let); JRE runs the unit while you remain in India.

FAQ