Yes — an Indian resident can buy property in Dubai. But there are several legal, financial, and regulatory points you should be aware of. Here’s a breakdown:
What is Allowed
- Freehold ownership for foreigners :- Indians (and other foreign nationals) are allowed to buy properties in designated freehold zones in Dubai. Law No. 7 of 2006 allows this.
- No requirement for UAE residency visa :- You do not necessarily need a UAE residence visa to purchase property. You can buy even if you live in India
- Possibility of visas via investment :- If you buy property over a certain value, you may qualify for a 2-year residence visa. Buying property worth AED ~2 million (or equivalent) might make you eligible for a 10-year “Golden Visa”.
What to be careful about / Limitations
- Choice of location (freehold zones) :- Only in certain areas that are designated freehold can foreigners own “full” rights. Others are leasehold or restricted. Popular freehold zones include: Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Village Circle, Business Bay, etc.
- Indian regulations: FEMA / LRS / remittance limits :- Because you are sending money abroad, you must comply with Indian foreign exchange laws: Under the Liberalised Remittance Scheme (LRS), an Indian resident can remit up to USD 250,000 per financial year for overseas property investment. All funds should be sent via proper banking channels. Any “borrowings abroad” or foreign currency liabilities may have restrictions under FEMA. E.g., certain payment plans or mortgages from foreign entities might not be allowed without special permissions.
- Taxes & reporting :- Dubai doesn’t levy property tax or capital gains tax in many cases, but India taxes its residents on global income. So rental income from the Dubai property, plus capital gains (if you sell), will be taxable in India. You’ll need to disclose foreign assets in your Indian tax returns Be sure to check double taxation avoidance treaties and what deductions are possible.
- Payment structure & developer agreements :- Off-plan properties often are sold with payment plans (down payment + instalments during construction). You should check the terms very carefully (dates, penalties, what happens if there’s delay). There are fees besides the property cost: registration fees (land department), agent commissions, developer NOCs, title deed issuance, etc.
Practical Advice
- Use a reputed real estate agent who is RERA certified and deals in freehold properties.
- Get all documentation in order: valid passport, proof of funds/income, bank statements, perhaps power of attorney if buying remotely.
- For large purchases, maybe spread payments over years (if allowed) and use family members where possible under LRS if the amount exceeds remittance limits.
- Understand your exit strategy (resale, renting) and your tax liabilities in India.
