FEMA rules. LRS remittance. TDS & tax treaties. Home loans. Repatriation. POA & legal checklist. Dubai vs India comparison. Everything an NRI needs to invest confidently — explained clearly, without jargon.
Quick NRI Reference — 2026
| FEMA — NRI property purchase | Freely allowed |
| LRS limit (Indian residents) | USD 250,000 / yr |
| NRI remittance cap | No cap — unlimited |
| TDS on property sale (LTCG) | 12.5% |
| NRI repatriation limit / yr | USD 1 Million |
| India-UAE Double Tax Treaty | Active |
| Dubai property — NRI eligible | ✓ Yes, fully |
Section 1
FEMA (Foreign Exchange Management Act) is the law that governs all NRI property transactions in India. Here's what it means for you.
Under FEMA, NRIs (Non-Resident Indians) and OCI (Overseas Citizen of India) card holders can purchase the following in India without any RBI permission:
💡 Key point: An NRI does NOT need any RBI permission to buy residential or commercial property in India. The process is the same as a resident Indian — with the only difference being how you make the payment (via NRE or NRO account).
⚠️ If you hold a PIO card (not OCI), the rules are different. Apply for OCI conversion if possible — it gives you the same purchase rights as an NRI.
All property payments must flow through proper banking channels. Here's exactly how:
FEMA QUICK REFERENCE
| NRI property purchase permission | Not required |
| Max properties an NRI can own | Unlimited |
| OCI card holders — same rights as NRI | Yes |
| Agricultural land — NRI purchase | RBI approval needed |
| RERA compliance required | Yes — all states |
Section 2
The Liberalised Remittance Scheme (LRS) controls how much money Indian residents can send abroad each year. NRIs need to understand this — especially if your family in India wants to co-invest.
LRS (Liberalised Remittance Scheme) is an RBI scheme that allows Indian residents (people living in India) to remit up to USD 250,000 per financial year outside India for permitted purposes — including buying property abroad, education, travel, investment and maintaining foreign bank accounts.
💡 Important distinction: LRS applies to Indian RESIDENTS — not NRIs. If you already live in the UAE, USA, UK or Singapore, LRS does NOT apply to you. You can remit any amount to India from your foreign income without any LRS cap.
If you are an NRI living abroad, you can remit any amount to India from your foreign earnings to buy Indian property. There is no annual cap. The process:
⚠️ TCS on LRS: Indian residents remitting abroad under LRS must pay 20% TCS on amounts above Rs 7 lakh per year. This is not a tax — it's advance tax credit, refundable when you file your ITR. Keep your Form 15CC from the bank.
Section 3
Tax is the #1 question every NRI asks before selling property. Here are the key numbers and rules for 2026.
When an NRI sells Indian property, the buyer must deduct TDS at source before releasing the sale proceeds:
💡 Lower Deduction Certificate: Apply to your Income Tax Assessing Officer under Section 197 for a Lower Deduction Certificate — this can significantly reduce TDS based on your actual tax liability. Apply 1–2 months before the sale.
NRIs can avoid LTCG tax entirely by reinvesting gains into another Indian residential property within:
India and the UAE have an active Double Taxation Avoidance Agreement (DTAA). Key benefits for NRIs in Dubai:
💡 Practical benefit: Since UAE has zero income tax, the DTAA simply means you pay Indian tax rates on Indian income — with no additional UAE tax layer. Your effective tax is just the Indian LTCG rate (12.5% for property held 2+ years).
Unlike Indian property, Dubai investment has no tax at any stage:
💡 An NRI earning AED 120,000/year rent from Dubai property pays zero tax on that income — unlike Indian rental income which is taxed at slab rates (20–30% for most NRIs).
Section 4
NRIs can get home loans from Indian banks. Here's everything you need to know about eligibility, documents and repayment.
💡 Tip: Banks with UAE branches (SBI, ICICI) can process your loan without you needing to visit India. Documents can be submitted at the UAE branch and verified remotely.
| Loan amount | Up to Rs 5 crore (varies by bank) |
| LTV ratio | Up to 75–80% of property value |
| Loan tenure | Up to 20 years |
| Interest rate (2026) | 8.5% – 10.5% p.a. |
| EMI repayment account | NRE or NRO account only |
| Co-applicant allowed | NRI or resident Indian relative |
Section 5
One of the most common NRI concerns — "When I sell my Indian property, can I get the money back to Dubai?" Yes. Here's how.
💡 We connect our investors with FEMA-specialist CAs who handle repatriation documentation regularly. WhatsApp us to get a referral.
Section 6
Before you buy property — in India or Dubai — make sure these documents are in order. Missing any one can delay or block your investment.
Need help getting your documents in order before buying? Our team guides NRI clients through the full documentation process — PAN, OCI, POA, bank accounts — at no extra charge.
Get Document Help →Section 7
Many of our best investors hold both. Here is the honest, detailed comparison to help you decide your allocation.
| Investment Factor | 🏙️ Dubai Property | 🇮🇳 India Property |
|---|---|---|
| Annual Property Tax | Zero — no property tax ever | Varies by state — 0.1–0.5% of value/year |
| Income Tax on Rent | Zero — no income tax in UAE | Taxed at slab rate — 20–30% for most NRIs |
| Capital Gains Tax | Zero — no CGT on sale | 12.5% LTCG (Budget 2024, held 2+ years) |
| Gross Rental Yield | 7–9% average | 2–5% average (Bengaluru highest at 4–5%) |
| Capital Appreciation | 8–16% p.a. (2020–25 data) | 10–22% p.a. (Gurgaon, North BLR) |
| Currency Risk | AED pegged to USD since 1997 — stable | INR depreciates vs USD ~2–3% p.a. historically |
| Residency Benefit | 10-Year Golden Visa (AED 2M+ property) | None |
| Legal Protection | DLD + RERA federal escrow — mandatory | RERA state-wise — quality varies |
| Buying Cost | ~6–7% (DLD 4% + agent 2%) | ~5–8% (Stamp duty + GST + registration) |
| Entry Ticket | AED 500K+ (~₹1.1 Crore) | Rs 50L onwards in many cities |
| NRI Tax Complexity | Zero — no TDS, no ITR needed for Dubai | High — TDS, Form 15CA/15CB, ITR filing |
| Audience for Investment | World — any nationality can buy | India, NRIs and OCI holders only |
| Best For NRIs | Tax efficiency + yield + residency + global appeal | Capital growth + emotional connection + home |
Our advice: Most NRIs benefit from holding both — Dubai for yield, tax efficiency and residency; India for higher capital growth in their home city. We help structure both investments from one advisory.
Get Portfolio Advice →Interactive Tool
Track how much of your annual USD 250,000 LRS limit you have used — and how much remains for Dubai property investment.
For Indian residents sending money abroad under the Liberalised Remittance Scheme (FY 2025-26)
₹500 Lakh (USD 60,240) ₹400 Lakh (USD 48,193) 1 USD = ₹83LRS limit: USD 250,000 per person per financial year (April–March). Figures are indicative. Consult a CA for your exact tax liability. TCS is claimable as credit in your ITR — it is not a final tax.
Free NRI Advisory
14+ years. 4,000+ NRI investors served. Our team has handled FEMA, LRS, TDS, repatriation and dual-market portfolio structuring hundreds of times. Whatever your question — WhatsApp us.
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20 Most Asked NRI Questions
The 20 most common questions from NRIs in UAE, UK, USA, Singapore, Canada and Australia about investing in India and Dubai.
Yes. NRIs and OCI card holders can freely buy residential and commercial property in India under FEMA without any RBI permission. There is no limit on the number of properties and no approval process. The only restriction is on agricultural land, plantation property and farmhouses — these require RBI approval. For all other property types (apartments, villas, plots, offices, shops), NRIs can purchase freely. Payments must be routed through NRE or NRO bank accounts.
The LRS (Liberalised Remittance Scheme) limit is USD 250,000 per person per financial year (April to March) for Indian residents. This limit applies to the total of all outward remittances — including property investment, education, travel and foreign bank accounts. A family of four can collectively remit USD 1 million per year. Important: LRS applies to Indian RESIDENTS only, not NRIs. If you live in the UAE, UK or USA, you can remit any amount to India without any LRS cap.
TCS (Tax Collected at Source) of 20% applies to LRS remittances above Rs 7 lakh per year (as per Budget 2023). The bank collects this automatically when you make the remittance. TCS is NOT a final tax — it is advance tax that you can claim as a credit when you file your Income Tax Return (ITR). If your actual tax liability is lower than the TCS collected, you receive a refund. Keep your Form 15CC from the bank as proof of TCS deducted.
When an NRI sells Indian property, the buyer must deduct TDS at source: 12.5% on Long-Term Capital Gains (property held over 2 years — Budget 2024 rate, indexation removed) or 30% on Short-Term Capital Gains (held under 2 years). The buyer files Form 26QB and issues Form 16B to the NRI seller. An NRI can apply to the Income Tax Assessing Officer for a Lower Deduction Certificate (Form 13) before the sale — this can reduce TDS significantly based on your actual tax liability. Apply at least 1–2 months before the sale date.
NRIs can use Section 54 of the Income Tax Act to claim full or partial exemption on Long-Term Capital Gains by reinvesting in another Indian residential property. Conditions: (1) Buy new property within 1 year before or 2 years after sale, OR construct within 3 years. (2) New property must be in India. (3) New property must not be sold within 3 years. If full gain amount is reinvested, entire gain is exempt. Section 54EC also allows exemption by investing gains in specified bonds (NHAI, REC) within 6 months of sale — up to Rs 50 lakh. Always consult a specialist CA before selling.
India and the UAE have an active Double Taxation Avoidance Agreement (DTAA). Key benefit for UAE-based NRIs: since the UAE has zero income tax, the DTAA means you pay Indian tax rates on Indian-source income (rent, capital gains) — without any additional UAE tax layer. In practice: rental income from Indian property is taxed in India only (at applicable slab rates). Capital gains on Indian property sale are taxed in India only (12.5% LTCG). To claim DTAA benefits, obtain a Tax Residency Certificate (TRC) from the UAE Federal Tax Authority and submit it to your Indian bank and CA before filing ITR.
Yes. NRIs can repatriate: (1) Principal invested from NRE account or foreign remittance — freely repatriable without limit. (2) Capital gains after TDS — repatriable via NRO account, up to USD 1 million per financial year. Process: ensure TDS is deducted → engage a CA to file Form 15CA/15CB → submit to your NRO account bank → SWIFT transfer to UAE account. The CA certificate (Form 15CB) is mandatory for amounts above Rs 5 lakh and confirms all Indian taxes are paid. For amounts over USD 1 million, plan the repatriation across two financial years.
NRE (Non-Resident External) account: funded from foreign income. Tax-free in India. Fully repatriable (principal + interest). Use for property payments from overseas salary. NRO (Non-Resident Ordinary) account: for India-source income like rent, dividends. Taxable in India. Repatriable up to USD 1M/year with CA certificate. Recommended strategy: pay for property via NRE (fully repatriable), collect rental income via NRO. Both accounts can hold deposits in Indian rupees. Open at banks with UAE presence (SBI, ICICI, HDFC, Axis) — most accept online applications.
A POA (Power of Attorney) authorises someone in India to act on your behalf for property transactions — signing agreements, attending registration, taking possession. NRIs need a POA when they cannot be physically present in India. Process: (1) Draft a Specific POA (for one transaction) specifying exact powers. (2) Sign before a Notary Public in your country of residence (UAE, UK, USA). (3) Get it apostilled or attested by the Indian Embassy/Consulate. (4) Send to India for use. A Specific POA is safer than a General POA — it limits the holder to only the defined transaction. We help our NRI clients with POA guidance at no extra charge.
Yes. PAN (Permanent Account Number) is mandatory for all property transactions above Rs 50 lakh and for any NRI applying for a home loan. NRIs can apply for PAN online through the NSDL portal (nsdlpan.com) or via Form 49A. Documents needed: passport, overseas address proof, OCI/NRI status proof. Processing takes 7–14 working days. PAN is also needed to file ITR, claim TDS refund, and open NRE/NRO bank accounts. If you don't have a PAN, apply before you start the property buying process — not after.
Yes. Dubai off-plan property can be purchased entirely remotely. The process: (1) Select property via our advisory team. (2) Sign booking form digitally or via email scan. (3) Transfer booking deposit via SWIFT from your UAE/Indian NRE bank account. (4) Developer issues SPA (Sales Purchase Agreement) electronically. (5) DLD registration completed via Power of Attorney if needed. Many of our NRI investors in UK, USA and India buy Dubai off-plan without visiting — they attend handover or send a representative. For ready properties, physical visit to DLD is preferred but a POA can handle it remotely.
Yes. NRIs can get home loans from Indian banks including SBI, HDFC, ICICI, Axis, Kotak and Bajaj Housing Finance for Indian property. Key terms: up to 80% LTV, tenure up to 20 years, interest rates 8.5–10.5% p.a. (2026). EMI must be paid from NRE or NRO account. Banks with UAE branches (SBI UAE, ICICI UAE) can process the loan without you visiting India. Documents: valid passport + UAE visa, last 3 months payslips, last 6 months bank statements, employment contract, property documents, PAN card. Minimum employment period preferred: 2 years with current employer.
They serve different purposes and many NRIs hold both. Dubai advantages: zero tax on rent and capital gains, 7–9% gross rental yields (vs 2–5% in India), AED/USD stable currency, 10-year Golden Visa from AED 2M investment, simpler ownership and repatriation (no TDS, no Form 15CA/15CB). India advantages: higher capital appreciation (10–22% p.a. in top cities vs 8–16% in Dubai), lower entry price (from Rs 50 lakh), emotional connection and home city investment. Many UAE-based NRIs use Dubai property for yield and tax efficiency, and India property for capital growth in their home city.
Essential documents for NRI property purchase in India: (1) Valid Indian passport. (2) OCI card or NRI status proof (UAE/foreign residency permit or visa). (3) PAN card — mandatory for transactions above Rs 50 lakh. (4) NRE/NRO bank account details. (5) Address proof abroad (UAE driving licence, utility bill, or bank statement). (6) Power of Attorney (if buying remotely). (7) For home loan: additionally — last 3 months payslips, 6 months bank statements, employment contract. For off-plan purchase from abroad, many developers accept digitally signed documents and SWIFT transfer receipts.
RERA (Real Estate Regulation and Development Act 2017) is India's federal property buyer protection law. Key protections for NRIs: (1) Mandatory project registration — no developer can sell without RERA number. (2) 70% of buyer funds kept in escrow — released only at construction milestones. (3) Quarterly construction updates filed publicly online. (4) Developers penalised for delays — interest payable to buyers. (5) Online complaint mechanism — resolved within 60 days. Always verify a project's RERA number at the state RERA portal before paying anything. We verify RERA for every project in our portfolio — no unregistered projects ever.
One-time costs for under-construction property: Booking amount (5–15% upfront), GST 5% (for under-construction), Stamp duty 3–7% (varies by state), Registration charges 0.5–1%, Developer infrastructure/maintenance deposit Rs 2–8 lakh typically. Total additional cost: approximately 10–14% above base price. For a Rs 1.5 crore apartment: expect to pay Rs 1.68–1.71 crore all-in. Note: ready-to-move-in properties with Occupancy Certificate are exempt from GST — only stamp duty and registration apply. Our team provides a full cost breakdown for every project before you book.
Yes. Indian residents can use their LRS remittance quota (USD 250,000/year) to buy Dubai real estate. Dubai property investment is a permitted use under LRS. The process: (1) Instruct your Indian bank to remit funds under LRS for overseas property investment. (2) Bank deducts 20% TCS on amount above Rs 7 lakh (claimable in ITR). (3) Funds sent to developer's UAE bank account via SWIFT. (4) Alternatively, NRIs already living in UAE can pay directly from their UAE salary account — no LRS involved. For families, each adult member can remit USD 250K separately, enabling combined purchases up to USD 1M+ per year.
OCI (Overseas Citizen of India) is a lifetime visa and status that gives foreign nationals of Indian origin the right to live, work and invest in India with the same rights as NRIs — including free property purchase. If you are a foreign national (USA, UK, UAE passport holder) with Indian origin, you should apply for OCI. Benefits: multiple-entry, multi-purpose lifetime visa, no need to register with police for extended stays, same property purchase rights as NRIs. Apply at indianvisaonline.gov.in or your nearest Indian Embassy/Consulate. If you hold an old PIO card, convert to OCI urgently — PIO cards are discontinued and OCI gives broader rights.
Buying AED 2 million or more in Dubai real estate qualifies an NRI for the UAE Golden Visa — a 10-year renewable residence permit. Benefits: live and work in UAE without employer sponsorship, family members included, no minimum UAE stay requirement, renewable as long as you hold the property. For NRIs living outside UAE: this is a way to establish UAE residency and benefit from zero income tax on worldwide income (subject to your home country's tax rules). The application process: DLD confirms the property value → apply at ICA (Federal Authority for Identity) → visa issued within 2–4 weeks. Our team guides the full Golden Visa process.
The optimal dual-market NRI structure used by our clients: (1) Dubai property from UAE salary account — direct bank transfer to developer escrow. No LRS, no TCS, no Indian tax complexity. Choose off-plan for payment flexibility or AED 2M+ for Golden Visa. (2) India property from NRE account — funded from overseas income. Fully repatriable. Choose city based on home connection and growth potential (Gurgaon, Bengaluru, Pune lead our recommendations). (3) Keep rental income from India in NRO account, repatriate annually with CA certificate. (4) Dubai rental income received in UAE bank — zero tax. This structure gives you yield from Dubai, growth from India, repatriation flexibility and maximum tax efficiency. We structure this for our NRI clients every week.