Can Indians buy property in Dubai? Yes. Dubai is the easy half. The remittance is the other half.

Can Indians buy property in Dubai?

Yes, in designated areas. Dubai Law No. 7 of 2006 lets non-UAE nationals, subject to the Ruler's approval and in areas he determines, hold freehold ownership without a time limit, or usufruct and leasehold for up to 99 years. Outside those designated plots, a non-GCC foreigner cannot hold freehold.

The areas are set by Regulation No. 3 of 2006, which lists Dubai Marina, Palm Jumeirah, Palm Jebel Ali, Emirates Hills, Jebel Ali, Al Barsha South, The World Islands, Sheikh Zayed Road, Al Jaddaf, Mirdif, Nad Al Sheba, Ras Al Khor, Umm Hurair 2, Al Quoz and Warsan 1 among others. The list has been extended by later amendments and, crucially, the right attaches to specific land plots on the Land Department's maps, not to a community name on a brochure.

Check the plot with the Dubai Land Department, not with the developer's sales floor. What a foreign owner holds across the UAE: UAE foreign property ownership, explained.

Do I need UAE residency, and what ID does Dubai want?

No residency is required. The Dubai Land Department's sale registration service accepts a valid passport for non-resident foreigners in place of an Emirates ID, and a power of attorney is accepted. The transfer itself happens at a Real Estate Registration Trustee office and the Land Department lists the service time as about 15 to 20 minutes.

Registration is not a formality. Under Law No. 7 of 2006 a disposition is not deemed valid unless it is recorded in the Property Register, so the title deed the Land Department issues is the thing you are buying, not the sale agreement.

• Resale in a freehold zone: a developer no-objection certificate is required.
• Mortgaged seller: the process runs on three manager's cheques and a mortgage-release step.
• Off-plan: the developer registers the initial sale in the interim register, Oqood, and an Indian buyer supplies the sale and purchase agreement plus a passport copy if non-resident.

The two documents, explained: the Dubai title deed and Oqood.

How does an Indian resident send the money, under the LRS?

Through the Liberalised Remittance Scheme. The Reserve Bank's Master Direction lets authorised dealers freely allow remittances by resident individuals up to USD 250,000 per financial year, April to March, and the permitted capital account transactions expressly include acquisition of immovable property abroad.

• Who it covers: the scheme is available to all resident individuals including minors, and where the remitter is a minor the Form A2 must be countersigned by the natural guardian.
• What it does not cover: it is not available for any purpose specifically prohibited under Schedule I, or restricted under Schedule II, of the Foreign Exchange Management (Current Account Transaction) Rules.
• The practical consequence: a purchase above the annual limit is a multi-year or multi-person remittance question, and that is a conversation with your authorised dealer bank before you sign anything, not after.

This page reports the rule as the Master Direction states it. It does not advise on your structure, and the bank that executes the remittance is the one that has to be satisfied.

The UAE does not tax the rent. Does India?

The UAE charges individuals no personal income tax and no capital gains tax on selling property. That says nothing about India. The Income Tax Department's published position is that an individual who is a resident in India is liable to pay tax in India on global income, so the UAE's zero rate is not the end of the question.

There is a reporting side as well. Schedule FA of the Indian return covers foreign assets and income from any source outside India, including immovable property, and applies to resident taxpayers. It is not required from a Not Ordinarily Resident or a Non-Resident.

Where you personally land on resident, not ordinarily resident and non-resident depends on day counts over several years, which this page cannot do for you. Take it to a chartered accountant before the first rent is received, not in the year a notice arrives. This page is not tax advice.

What does the purchase cost in Dubai?

The Land Department transfer fee is 4% of the sale value, officially split 2% seller and 2% buyer, though in practice the buyer commonly pays all of it. The same 2% plus 2% applies to registering an off-plan initial sale. On top sit fixed fees and a trustee fee, and there is no VAT on a home.

On VAT: supplies of residential property are generally exempt and the first supply of a residential property within three years of completion is zero-rated, so a buyer of a new or resale home pays no VAT on the price. Commercial property is standard-rated at 5%. Agent commission has no official cap that could be found on a Land Department or RERA page, so treat the widely quoted 2% as market convention and negotiate it. Every fee: UAE property buying costs.

Does AED 2 million of Dubai property get an Indian buyer residency?

It can. The federal rule is that a real estate investor qualifies for a Golden Visa with one or more properties worth in total at least AED 2,000,000, wholly owned, and the identity authority sets the Golden Residency for a real estate investor at 10 years, with proof of ownership from the property registration department and UAE health insurance.

The detail differs by emirate and that is where people get caught out.

• Dubai: the Land Department's investor nomination takes a minimum of AED 2 million, wholly owned across one or several properties, and states the property may be mortgaged with a bank no-objection letter showing the amount paid and the balance outstanding. Its fee table for the 10-year permit totals AED 9,884.75.
• Off-plan: the federal page allows units on the map worth at least AED 2,000,000 bought from approved local companies. The Dubai page does not mention off-plan.
• Abu Dhabi: stricter, requiring AED 2,000,000 outside a mortgage, so the equity itself has to reach the threshold, with only national-bank mortgages allowed.

Rules differ by emirate and have moved. Confirm the current position with the Land Department or the identity authority before you treat a visa as part of the deal.

Header photo: Francisco Anzola, CC BY 2.0, via Wikimedia Commons. All credits: image credits.