Buying property in Dubai from India is fully legal, but sending money correctly and compliantly is critical. Many Indian buyers face delays or rejections simply because they are unaware of RBI-approved routes and documentation requirements.

This guide explains how to legally send money from India to buy Dubai property, the applicable RBI rules, and best practices to ensure a smooth transaction.

Is It Legal to Send Money From India to Buy Dubai Property?

Yes. The Reserve Bank of India (RBI) permits resident Indians to invest in overseas real estate under the Liberalised Remittance Scheme (LRS), subject to annual limits and compliance.

Key conditions:

• Payments must go through authorized banks
• Purpose must be declared correctly
• Annual remittance limits must be followed

Dubai real estate investment is an approved category under LRS.

What Is the Liberalised Remittance Scheme (LRS)?

Under LRS:

• Resident Indians can remit up to USD 250,000 per financial year (April–March)
• Funds can be used for overseas property purchase, including Dubai real estate

The limit applies per individual, not per family.

Legal Routes to Send Money From India to Dubai

1. Liberalised Remittance Scheme (Most Common)

Best for: Resident Indians living in India

Process:

• Outward remittance through Indian bank
• Purpose code: Overseas real estate investment
• Funds sent directly to developer or seller

Documents required:

• PAN card
• Passport
• Form A2
• LRS declaration
• Property booking documents

2. NRE / NRO Account Transfers (For NRIs)

Best for: NRIs and OCI holders

• NRE account: Fully repatriable funds
• NRO account: Subject to prescribed limits

Benefits:

• Faster execution
• No LRS cap if funds are foreign-sourced
• Easier management of rental income and resale proceeds

3. Payment From Overseas Income or Foreign Bank Account

If you:

• Earn income abroad
• Hold an overseas bank account

You can:

• Pay the Dubai developer directly
• Bypass LRS limits entirely

This option provides the highest flexibility, which is why NRIs often find execution easier.

How Much Money Can You Send?

Buyer Type	Annual Limit
Resident Indian	USD 250,000 per financial year
Each family member	Separate USD 250,000 limit
NRI (foreign income)	No LRS limit

Planning tip: Joint buyers can combine individual LRS limits to fund higher-value properties.

Step-by-Step: Sending Money Under LRS

Step 1: Property Finalization

• Receive booking form and payment invoice from the Dubai developer

Step 2: Bank Compliance

• Submit Form A2 and LRS declaration
• Declare purpose as overseas property investment

Step 3: Currency Conversion

• INR converted to USD or AED at bank’s TT rate
• Applicable TCS deducted

Step 4: Remittance Execution

• Funds transferred via SWIFT to the developer’s escrow account
• Payment confirmation issued

Tax Collected at Source (TCS) on LRS Remittances

As per Indian tax regulations:

• TCS is applicable on LRS remittances
• TCS is adjustable against income tax liability

Important points:

• TCS is not an additional tax
• Excess TCS can be claimed as refund while filing ITR

RBI Rules You Must Strictly Follow

✔ Use only RBI-authorized banks
✔ Declare correct purpose code
✔ Maintain all remittance documents
✔ Ensure funds go to escrow or registered accounts

❌ Avoid:

• Cash payments
• Hawala or informal channels
• Crypto-based transfers
• Third-party personal accounts

Non-compliance can result in serious penalties.

How Dubai Developers Accept Payments

Most Dubai developers accept:

• International bank transfers
• Escrow account payments
• SWIFT-based remittances

They provide:

• Official invoice
• Escrow account details
• Payment receipts

This ensures maximum buyer protection.

Common Mistakes Indian Buyers Make

• Using incorrect purpose codes
• Ignoring TCS planning
• Sending funds without booking confirmation
• Not retaining remittance proofs
• Relying on unofficial intermediaries

Avoiding these mistakes ensures a smooth purchase process.

Final Thoughts: Safe & Compliant Funding of Dubai Property

Sending money from India to buy Dubai property is:

• Completely legal
• Well-regulated by RBI
• Simple with correct documentation

By following LRS guidelines, RBI rules, and proper banking channels, Indian buyers can invest in Dubai real estate confidently and without risk.