Remitting funds under the Liberalised Remittance Scheme (LRS)
The Reserve Bank of India allows every resident individual to remit up to USD 250,000 per financial year abroad for any permissible current or capital account transaction, including buying property. For an Sobha apartment priced around ₹3.7 crore, a single year's LRS allowance is usually enough; larger villas may need two remittances across two financial years, or a joint application with a spouse.
- File Form A2 and a FEMA declaration with your bank each time you remit.
- Your bank converts INR to AED and wires directly to the developer's escrow account.
- Keep the developer's proforma invoice and allotment letter, the bank asks for them.
The 20% TCS and how to claim it back
Since 1 October 2020, remittances over ₹7 lakh under LCS attract a 20% Tax Collected at Source (reduced to 0.5% where the remittance is for education or medical). For a property purchase, that means a chunk of tax is collected upfront by your bank and deposited against your PAN. The good news: TCS is not an additional tax, it is an advance payment. You adjust it against your total income tax liability when you file your return and the excess is refunded.
- Ask your bank for the TCS certificate (Form 27D) so you can claim it back.
- If your total income is below the taxable threshold, the full TCS is refundable.
- Time your remittance near the start of a financial year to recover the refund faster.
Tax on rental income and capital gains
Rental income from Dubai property is not taxed in the UAE. For an Indian resident, it is added to your global income and taxed at your slab rate, but you can claim a 30% standard deduction on rental income under Section 24 of the Income Tax Act, plus interest on any home loan. Capital gains on selling the Dubai property are taxable in India as capital gains, whether short or long term. File Schedule FA each year to declare the foreign asset.
- Declare the property and any foreign bank account in Schedule FA of your ITR.
- A Dubai home loan, if any, is deductible under Section 24(b) up to ₹2 lakh on a self-occupied property.
- Capital gains become long term after 24 months for immovable property, taxed at 12.5% (no indexation).
The 10-year Golden Visa in rupees
A property investment of AED 2 million or more qualifies the buyer, spouse and children for a 10-year renewable UAE Golden Visa. At today's rate that is roughly ₹4.5 crore. Several Sobha communities, including Sobha Sanctuary, Siniya Island and Sobha City, Abu Dhabi, have villas and larger apartments that clear the threshold. The visa does not require you to live in Dubai full time and does not change your Indian tax residency on its own.
Power of attorney and the remote purchase
Most Indian buyers do not need to fly in for every signature. You can issue a Special Power of Attorney to a family member or advisor in Dubai, attested by the Indian Consulate and the UAE Ministry of Foreign Affairs, which lets them sign the SPA, register with the Dubai Land Department and collect keys. We help arrange this paperwork and the escrow wiring so the purchase can complete with one short visit for handover.
How we help Indian buyers
Typical situations our advisors handle, and the questions buyers ask first.
A Bangalore tech professional buying abroad for the first time and unsure how to send money out of India.
- “How much can I send under LRS each year?”
- “Will I pay TCS, and can I claim it back?”
- “Which documents does my bank need?”
How we help: We give you the developer paperwork your bank asks for, map the payment plan against your LRS limit, and stay with you until the title or Oqood is issued.
A Mumbai family business opening a Dubai trading company and wanting a home close to the office.
- “Mainland or free zone for my company?”
- “Can the company or I buy the property?”
- “How do I open UAE personal and business accounts?”
How we help: We connect you with licensed company-formation and banking partners and help you pick a community that works for the business and the family.
A Delhi couple who want long-term UAE residency and schooling options for their children.
- “What is the Golden Visa threshold in rupees?”
- “Can parents and children be sponsored?”
- “Does an off-plan home qualify?”
How we help: We shortlist units above AED 2 million (about ₹4.5 crore), explain what the off-plan route needs, and hand you to the visa service provider for the family application.
A Kochi professional working in the Gulf who wants one person to manage the whole process end to end.
- “Who explains the contract in plain language?”
- “What happens between booking and handover?”
- “Can you arrange leasing after handover?”
How we help: One advisor stays with you from unit selection through booking, instalments, handover inspection and tenant placement, with updates on WhatsApp.