Buying Property in Dubai from India: Sending Money, LRS and Tax Collected at Source

Last checked: October 2026

Please verify before you transfer. Remittance limits and tax rules change often, and this page may not reflect the latest update. Confirm the details with your chartered accountant, your bank or the official websites: Reserve Bank of India and Income Tax Department.

The Short Version

Indians can buy property in Dubai. For a resident Indian, the money usually leaves India through an authorised bank under the Liberalised Remittance Scheme (LRS). Tax collected at source (TCS) can apply on the transfer, and the property and its income then have to be reported in your Indian tax return. This page explains the steps and the questions to ask. It does not quote a TCS rate, because the rate and threshold have changed several times.

Sending Money: the Liberalised Remittance Scheme

The LRS lets resident individuals send money abroad each financial year through an authorised dealer bank, for permitted purposes that include buying property overseas. The limit has been USD 250,000 per person per financial year. Some families spread a purchase across eligible family members, each using their own limit and their own funds. Check the current limit with your bank before you plan the amounts.

What your bank will usually ask for

• Your PAN and identity documents.
• A declaration of the purpose of the remittance.
• Details of the receiving account from your contract.
• Evidence of the source of funds.

Requirements vary by bank. Ask yours for its current checklist.

Tax Collected at Source (TCS)

TCS is tax a bank can collect when you send money abroad above a threshold. The rate depends on the purpose of the remittance, and both the rate and the threshold have been changed in past Union Budgets. Two points are safe to say:

• TCS is generally an advance tax, not an extra cost. You can usually adjust it against your income tax liability when you file your return.
• It still affects your cash flow, because the money is collected when you transfer and returned later through your tax filing.

For the exact current rate and threshold for a property purchase, ask your bank and your chartered accountant, and check the Income Tax Department website.

NRIs

NRIs generally move funds through NRE or NRO accounts, and the rules for each account type are different from the LRS. Do not rely on an agent for this. Ask your bank which account to use and what documents it needs.

The Purchase Process

1. Choose a verified agent and property. Check the RERA licence.
2. Sign the contract. A resale uses a memorandum of understanding and a deposit, and an off-plan purchase uses a sale and purchase agreement and a payment plan.
3. Transfer through your bank. Send funds only to the developer escrow account or the official account named in the contract.
4. Pay the transfer fee and register. The Dubai Land Department charges a 4% registration fee on the price.
5. Receive the title. Many buyers complete the process remotely through a power of attorney. Confirm the process with the agent and developer.

Safety Checklist

• Use banking channels only. Never use informal or cash transfer arrangements.
• Never pay a deposit into a personal account.
• Keep copies of every transfer, receipt and contract.
• Report the property and any rent or sale gains in your Indian income tax return, including the foreign asset schedule where it applies.

Related Guides

• Can Indians buy property in Dubai?
• Dubai property tax for Indians
• Buy property in Dubai from India: complete guide

This article is general information, not tax, legal or financial advice. Dahabi Homes is a marketing platform, not a brokerage.