Indians are now the single largest group of foreign buyers in Dubai. A Khaleej Times report from July 2026, citing DXBinteract data, put their share at around 20.6% of purchasing activity in early 2026. Sharjah is also attracting more Indian families because entry prices are lower and it is close to Dubai's job market. The rules depend on one question: are you a resident Indian or an NRI? This guide covers both, and every figure has a source.
Step zero: resident Indian or NRI?
- Resident Indian: money leaves India under the Reserve Bank of India's Liberalised Remittance Scheme (LRS).
- NRI (for example, living and working in the UAE): LRS does not apply to you. RBI's LRS FAQ says the scheme is for resident individuals. You can pay from income you earned abroad, or send money from your Indian accounts under the repatriation rules.
RBI LRS rules for resident Indians
From RBI's published FAQs:
- Every resident individual, including minors, can freely remit up to USD 250,000 per financial year (April to March).
- Buying immovable property outside India is a permitted purpose.
- Remittances can be consolidated with resident relatives for a property purchase, as long as each relative meets the scheme's conditions. A couple, for example, can combine two limits.
- PAN is mandatory for every LRS transaction.
- LRS does not let AD banks give resident customers fund-based or non-fund-based facilities to pay for capital account remittances. In plain terms, you cannot borrow from your Indian bank to fund the transfer.
- Remittances to countries named by FATF as non-cooperative are not allowed. The UAE is not on that list.
TCS on remittances in FY 2026-27
From 1 April 2026, TCS on foreign remittances is covered by Section 394 of the Income-tax Act, 2025, which replaces Section 206C(1G). Published tax guides for FY 2026-27 say:
- No TCS on the first ₹10 lakh per person per financial year, across all LRS purposes combined.
- 20% TCS on the amount above ₹10 lakh for investment remittances, including overseas property. Budget 2026 cut the rate only for education and medical remittances.
- TCS is not a final cost. It is credited against your annual tax liability and can be refunded if you overpay.
Worked example: remit ₹50 lakh in one financial year and TCS applies to ₹40 lakh, which is roughly ₹8 lakh. You claim that ₹8 lakh as a credit in your return. Because it ties up cash until you file, many buyers spread off-plan instalments across financial years. Ask your chartered accountant to model this for you.
Rules that matter for NRIs
- UAE salary or business income can go straight to the developer. No Indian limit applies.
- NRE balances can be repatriated freely.
- From NRO accounts, NRIs can usually repatriate up to USD 1 million per financial year, subject to tax documentation (Form 15CA/15CB), as banks such as Kotak explain.
Where can Indians own property?
Dubai
Foreigners can buy freehold in designated areas. These include master communities we cover, such as Dubai Creek Harbour, Sobha Hartland II and Emaar South.
Sharjah
Sharjah Law No. 2 of 2022 and Executive Council Decision No. 30 of 2022 allow non-GCC foreigners to own property inside areas and projects approved by the Executive Council. Elsewhere, foreign ownership usually takes the form of a usufruct right of up to 100 years. Always check that the project is approved for foreign ownership. Large master communities such as Aljada are popular with Indian families.
The buying process, step by step
- Plan your budget and remittance calendar. Match off-plan instalments to your LRS and TCS position for each financial year.
- Shortlist and verify the project. Make sure it is registered with the Dubai Land Department (DLD) or Sharjah's Real Estate Registration Department.
- Reserve the unit and sign the Sale and Purchase Agreement (SPA).
- Pay only into the project escrow account or the developer's official account. Never pay into a personal account.
- Register the purchase. In Dubai, off-plan sales go on the interim register (Oqood). The DLD fee is 4% of the price, plus admin charges.
- Take handover and receive your title deed.
Documents checklist
- Valid passport
- PAN card, Form A2 and your bank's LRS declaration (resident Indians)
- Emirates ID and residence visa (if you live in the UAE)
- Proof of source of funds and recent bank statements
- Reservation form, SPA and payment receipts. Keep SWIFT copies for your Indian tax file.
Costs and residency options
- Dubai: 4% DLD registration fee plus administrative fees.
- Sharjah: Khaleej Times reported a standard 4% registration and transaction fee, which is sometimes halved temporarily during property exhibitions. Confirm the current fee with the department.
- Golden Visa (10 years): ICP lists one or more properties worth at least AED 2 million. Off-plan units count, and a loan from an approved UAE bank is allowed.
- Dubai 2-year property visa: according to Khaleej Times (April 2026), the AED 750,000 minimum was removed for sole owners. Joint owners need a share worth at least AED 400,000 each.
Tax in India
The UAE has no personal income tax on rent. An Indian tax resident, however, is generally taxed on worldwide income and must disclose foreign assets in their return. The India-UAE tax treaty may help, but get a CA's advice before you buy.
Frequently asked questions
What is the maximum a resident Indian can send for Dubai property?
USD 250,000 per person per financial year under LRS. Resident relatives can combine their limits for the same property.
Is TCS an extra tax on my Dubai purchase?
No. It is tax collected in advance and credited against your income-tax liability. For investment remittances it is 20% above ₹10 lakh a year.
Can an NRI buy property in Sharjah?
Yes, inside projects and areas approved for foreign ownership under Sharjah Law No. 2 of 2022. Check each project's status before you pay.
Does an off-plan purchase qualify for the Golden Visa?
According to ICP, off-plan units worth a total of AED 2 million or more qualify. Rules change, so confirm when you apply.
Want a project shortlist and a payment calendar that fits your LRS limit? Alroya Almomayaza Real Estate Brokers works with Indian and NRI buyers every day. Message us on WhatsApp at +971 58 558 9894.
