What changes if you're buying from India?

You can buy like anyone else. The differences are how you send the money, tax at home and your will.

The short answer

Being Indian changes nothing about whether you can buy: you can own freehold in Abu Dhabi's investment zones like any foreign buyer. ¹ What changes is getting the money there and tax at home. Residents can send up to US$250,000 a year under the LRS, ² and if you're resident in India, India taxes your rent and your gain. ⁵

Updated November 2026 4 min read

US$250,000Most a resident can send abroad each financial yearRBI, Liberalised Remittance Scheme

20%TCS on remittances above ₹10 lakh a year, claimable against your taxBank notice, 2025 rates

182 daysIn India in a year makes you resident for taxPwC tax summary

Can you buy as an Indian citizen?

Yes. Foreigners of any nationality can own freehold property in Abu Dhabi's designated investment zones, and you don't need to live in the UAE to buy. ¹ The rules are the same as for any other foreign buyer, so start with who can buy, and where.

How much money can you send?

Up to US$250,000 per financial year (April to March), under the Reserve Bank of India's Liberalised Remittance Scheme. It applies to every resident individual, including minors. ²

Family purchases

Relatives living in India can combine their limits to buy one property abroad, as long as each of them meets the scheme's conditions. ²

Tax collected at source

Above ₹10 lakh a year, your bank collects 20% on the rest of the remittance as TCS. ³

Not an extra tax

The TCS counts towards your income tax for the year, and if you owe less, you can claim it back when you file your return. ⁴

Will India tax your rent?

If you're resident and ordinarily resident in India, yes. India taxes them on their worldwide income, wherever it's received. ⁵ That includes rent from a property abroad, which must be reported in your income tax return. ⁷ The UAE charges no tax on it, so there's no foreign tax to set against the Indian bill.

Who counts as resident

Usually anyone in India for 182 days or more in the tax year, with a second test for people with long stays in earlier years. ⁶

What happens when you sell?

If you're resident in India, the gain is taxed there. Property held for more than 24 months is a long-term gain, taxed at 12.5% without indexation. A shorter hold is taxed at your normal slab rate. ⁸

Keep your paperwork

The purchase price, the fees you paid on buying and selling, and the dates. They reduce the gain you're taxed on.

Tax-free in Abu Dhabi. Tax-free for you?

Only if you're not resident in India. If you are, India taxes your rent and your gain, and you must declare the property every year.

Do you have to declare it?

Yes, every year, even if it earns nothing. Residents must list overseas property in Schedule FA of their income tax return. ⁷

The penalty

Not disclosing foreign assets can bring a penalty of up to ₹10 lakh. ⁹

The small-asset relief doesn't cover it

The relief for undeclared foreign assets worth up to ₹20 lakh applies to movable assets, not property. ⁹

What if you live in the UAE?

If you're a non-resident Indian (NRI), India only taxes income that arises or is received in India, so rent from Abu Dhabi isn't taxed there. ⁵ The LRS limit is for people resident in India, so it doesn't restrict money you've earned and kept in the UAE. ²

Coming back to India

In your first years back you may be "resident but not ordinarily resident", which also keeps most foreign income out of Indian tax. Check your status each year. ⁵

Do you need a will in Abu Dhabi?

It's wise to have one. Under Abu Dhabi's law for non-Muslims, if you die without a will, half your estate passes to your spouse and the other half is split equally between your children. ¹⁰ If that isn't what you want, a will lets you choose. Non-Muslims can register a will with the Abu Dhabi Judicial Department. ¹¹

Ask your lawyer

Whether your Indian will and an Abu Dhabi will need to mention each other, so one doesn't cancel the other.

Can you buy without flying out?

Yes, through a power of attorney: someone in the UAE signs for you. A document signed in India usually has to be attested in India, then by the UAE Embassy, then by the UAE Ministry of Foreign Affairs before it's accepted. ¹² The exact steps vary, so check them with your lawyer before you sign, and allow several weeks.

In rupees

Every calculator on whyAD can show its results in ₹ as well as Dh. Try the cost calculator, and see our mortgage guide for borrowing from a UAE bank.

What's the catch?

Read these before you sign anything.

Plan the transfer.

The US$250,000 yearly limit and 20% TCS above ₹10 lakh shape when and how you can pay, especially for off-plan instalments.

TCS ties up cash.

You get it back against your tax, but not until you file your return.

Declare it every year.

Overseas property belongs in Schedule FA even when it earns nothing.

Your residence status decides almost everything.

If you split time between India and the UAE, get advice before you buy.

This is general information.

Tax and foreign exchange rules depend on your circumstances. Speak to a chartered accountant before you commit.

Sources

What should you read next?

Three guides that follow on from this one.

See all guides

Buying guideCan foreigners buy property in Abu Dhabi? Buying guideCan you get a mortgage in Abu Dhabi as an expat? Buying guideWhat does it really cost to buy in Abu Dhabi?

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