Buying Dubai property from India: the 2026 money rules

The rules depend on one thing: where you live. Indians living in India must send money under the RBI’s Liberalised Remittance Scheme (LRS), which has limits and grey areas. NRIs paying from money earned abroad face far fewer limits from India.

If you live in India

1. LRS is the legal route. You can send up to US$ 250,000 in a financial year (April–March) through an authorised bank. Family members who live in India can put their LRS amounts together for one property.
2. TCS is collected by the bank. Above ₹10 lakh in a year, banks collect 20% TCS on remittances for “other purposes”, which is how most banks treat property. It is not lost: you claim it back against your income tax. But it ties up cash, so plan for it.
3. Payment plans and EMIs are the grey area. Many Dubai off-plan deals are paid in instalments over years. Lawyers have warned that some instalment and loan structures may not fit LRS, and in January 2026 there were unconfirmed reports that some banks stopped EMI-type transfers. Before you book, get your bank to confirm in writing that it will send every instalment.
4. Do not borrow abroad to buy. Lawyers quoted in the press say residents cannot take overseas loans, including developer-funded ones, under current rules.
5. Do not pay with a credit card. Experts say property is a capital transaction and cards are meant for spending like travel, so a card payment can break FEMA.
6. Declare it. As a resident, your Dubai property and any rent from it must be shown in your Indian income tax return (the foreign assets schedule). Ask your chartered accountant.

If you are an NRI

• Money you earn and hold abroad is not under LRS, so you can usually pay the developer directly, use a payment plan, or take a UAE mortgage if a bank lends to you.
• If you send money from an NRO account in India, the limit is US$ 1 million a financial year, with tax paperwork from your bank.
• If you later move back to India, you become a resident for tax and must declare the property then.

Before you send any money

• Do the checks before you book: developer, escrow account and Oqood registration.
• Pay only into the project’s official escrow account, never a personal or agent account.
• Keep every bank advice, the sale agreement and the DLD receipts.

Questions people ask

How much money can a resident Indian send to buy property in Dubai?

Up to US$ 250,000 per person per financial year under the RBI’s Liberalised Remittance Scheme, through an authorised bank. Family members living in India can combine their limits for one property.

Is TCS charged on money sent to buy Dubai property?

Yes, for residents. Banks collect TCS of 20% on amounts above ₹10 lakh in a financial year for “other purposes”, which usually includes overseas property. You can claim it back against your income tax.

Can a resident Indian pay a Dubai off-plan payment plan in instalments?

It is a grey area. Some instalment and loan-linked structures may not fit LRS, and some banks have reportedly stopped such transfers. Get your bank’s written confirmation before booking.

Can I use my credit card to pay a Dubai property booking amount?

Residents should not. Experts say property is a capital account transaction under FEMA, and cards are meant for current account spending such as travel.

General information, not legal, tax or investment advice. Rules and figures change; check with your bank and a chartered accountant before sending money. Dubai purchases are handled through a Dubai-licensed brokerage I work with, and I may receive a referral fee. I am a TS-RERA registered agent in Telangana (A02200001905); how I am paid.

Sources

• Standard Chartered India: TCS on LRS remittances
• RBI FAQs: immovable property, updated 6 Apr 2023
• Khaleej Times: Indian buyers warned against credit cards, 25 Aug 2025
• Ghar.tv: Banks halt Dubai property EMI remittances (unconfirmed reports), 28 Jan 2026